About this tool
An EMI (equated monthly installment) is the fixed amount you pay each month to clear a loan. This calculator uses the standard reducing-balance formula used by banks for home, car and personal loans.
How to use EMI Calculator
- Enter the loan amount.
- Add the yearly interest rate and the loan term in years.
- Press Calculate to see your monthly EMI and the total interest you will pay.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate and n is the number of monthly payments.
Does a longer tenure reduce my EMI?
Yes, the monthly amount drops, but you pay more interest overall. Compare two tenures here before deciding.