EMI Calculator

What is an EMI?

Equated Monthly Installment (EMI) represents the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off.

How is EMI calculated?

The mathematical formula for calculating EMIs is: EMI = P x R x (1+R)^N / [(1+R)^N-1]

• P is the principal loan amount.
• R is the applicable rate of interest calculated on a monthly basis.
• N is the number of monthly installments (loan tenure).

Benefits of Using this Calculator

• Quick planning: Instantly check how much a loan will impact your monthly budget.
• Visual breakdown: Understand how much of your total payment is going towards pure interest versus the principal.
• Comparison: Test different tenure lengths to see how changing it from 5 to 10 years impacts your monthly payments.