EMI Calculator

Calculate your equated monthly installment (EMI) for home loans, car loans, or personal loans.

₹10,00,000
₹10,000₹1,00,00,000
8.5%
1%30%
5Yr
1Yr30Yr
Monthly EMI
₹ 20,517
Principal Amount
₹ 10,00,000
Total Interest
₹ 2,30,992
Total Amount Payable
₹ 12,30,992
Principal
Interest

Understanding the EMI Calculations

What is an EMI?

EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

How is EMI Calculated?

The mathematical formula for calculating EMI is: E = P x r x (1 + r)^n / ((1 + r)^n - 1). Here, P represents the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the total number of monthly installments.

Example Scenario

Suppose you take a car loan of ₹5,00,000 at an annual interest rate of 9% for a tenure of 3 years (36 months). Using the formula, your monthly EMI would come out to ₹15,899. Over the 3 years, you would pay a total of ₹72,395 in interest.

Frequently Asked Questions

Does EMI change during the loan tenure?

For a fixed-rate loan, the EMI remains constant throughout the tenure. However, for a floating-rate loan, the EMI or the loan tenure may change if the interest rate is revised by the lender.

What happens if I miss an EMI payment?

Missing an EMI payment usually attracts a late payment penalty from the bank. It also negatively impacts your credit score (CIBIL score), making it harder to get loans in the future.

Can I pay more than my EMI?

Yes, this is called prepayment or part-payment. Paying extra directly reduces your outstanding principal, which dramatically lowers the total interest you will pay over the life of the loan.