What is EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. It includes both the principal amount and the interest charged by the lender, spread equally over the loan tenure.
EMI Formula
EMI = P × r × (1+r)^n / ((1+r)^n - 1)
Where P = Principal loan amount, r = Monthly interest rate (Annual rate ÷ 12 ÷ 100), n = Number of monthly installments.
How to Use This EMI Calculator
- Enter the loan amount in rupees
- Enter the annual interest rate offered by your bank
- Enter the loan tenure in months or years
- Click Calculate EMI to see your monthly payment
Frequently Asked Questions
What happens if I pay extra EMI? +
Paying extra reduces your principal faster, lowering total interest paid and shortening your loan tenure.
Does EMI change if RBI changes interest rate? +
For floating rate loans yes — your EMI or tenure adjusts when your bank revises the rate. Fixed rate loans are unaffected.
Is this EMI calculator accurate? +
Yes, it uses the standard EMI formula used by all banks. Minor differences may occur due to processing fees not included here.