EMI Calculator

Enter your loan amount, interest rate and tenure to see your Equated Monthly Instalment (EMI), the total interest you will pay and the full amount repaid over the life of the loan.

What is an EMI?

An EMI, or Equated Monthly Instalment, is the fixed amount you pay your lender every month until a loan is fully repaid. Every instalment is the same size, which is what makes a loan easy to budget for.

Each payment is split between interest and principal. Early on, most of the money goes on interest because the outstanding balance is large. As the balance shrinks, the interest portion falls and more of each instalment goes towards clearing the debt.

How to calculate EMI

The standard amortisation formula converts the annual rate into a monthly rate and the tenure into a number of months, then solves for the fixed payment that clears the balance exactly at the end of the term.

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly instalments.

EMI formula explained

When the interest rate is zero the formula divides by zero, so the calculator falls back to a simple principal ÷ months split in that case.

P is the amount you actually borrow, after any down payment.
r is the monthly rate. A 9% annual rate becomes 9 ÷ 12 ÷ 100 = 0.0075.
n is the tenure in months. A 20-year loan is 240 instalments.
(1 + r)ⁿ is the compounding factor over the full term.

Example calculation

Borrow 1,000,000 over 20 years at 9% a year. The monthly rate is 0.0075 and the tenure is 240 months. Putting those into the formula gives an EMI of about 8,997.

Over 240 months you repay roughly 2,159,000 in total, which means about 1,159,000 of it is interest — more than the amount you originally borrowed.

EMI = 1,000,000 × 0.0075 × 1.0075²⁴⁰ ÷ (1.0075²⁴⁰ − 1) ≈ 8,997

What changes your EMI

How each input moves your monthly payment
If you...	EMI	Total interest
Borrow more	Rises	Rises
Take a longer tenure	Falls	Rises sharply
Take a shorter tenure	Rises	Falls sharply
Get a lower interest rate	Falls	Falls
Make a lump-sum prepayment	Unchanged	Falls

A longer tenure is the most common way to make an unaffordable EMI affordable — but it is also the most expensive.

How to reduce the interest you pay

Choose the shortest tenure whose EMI you can comfortably afford.
Make prepayments early, when the balance and therefore the interest is largest.
Compare the annual percentage rate, not just the headline rate, so fees are included.
Refinance if rates fall significantly and the switching cost is lower than the saving.
Put down a larger deposit to reduce the principal from the start.

Frequently Asked Questions

Is the EMI the same every month?

Yes, on a fixed-rate loan the instalment stays the same for the whole term. What changes is the split inside it — the interest share falls every month while the principal share rises.

Does a longer tenure make a loan cheaper?

It makes each month cheaper but the loan far more expensive overall. Stretching the same loan from 15 to 25 years lowers the EMI noticeably while adding a large amount of extra interest.

How does prepayment affect my EMI?

Most lenders keep the EMI the same and shorten the tenure instead, which maximises your interest saving. Some let you keep the tenure and reduce the EMI. Ask which option your lender applies before you prepay.

Does this calculator include processing fees?

No. It computes the instalment on the principal you enter. Processing fees, insurance and stamp duty are usually charged separately or added to the loan, so add them to the loan amount if your lender does.

Can I use this for a home or car loan?

Yes. Home loans, car loans, personal loans and most mortgages all use the same amortisation formula, so this calculator works for any of them as long as the rate is fixed.