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EMI Calculator

Calculate your exact monthly loan installment for home, car, or personal loans — with full amortization schedule.

✓ Home · Car · Personal ✓ Amortization Table ✓ Total Interest Shown ✓ 100% Free
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What Is EMI and How Is It Calculated?

EMI — Equated Monthly Installment — is the fixed monthly payment you make to a bank or lender to repay a loan over a chosen period. Every EMI you pay covers two things: a portion of the original loan amount (principal) and the cost of borrowing (interest).

The EMI Formula Explained

EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is your loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments. This is a reducing-balance formula — as you repay principal, the interest in each subsequent month decreases.

How to reduce your loan EMI

  • Make a larger down payment to reduce the loan principal
  • Choose a longer tenure — monthly EMI drops but total interest increases
  • Negotiate a lower interest rate — even 0.5% less saves significantly
  • Make prepayments when possible to reduce the outstanding balance

💡 EMI Tips

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Keep your total EMIs under 40% of your monthly take-home income.

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Compare rates from 3+ banks before taking any loan.

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Prepaying even one extra EMI per year cuts tenure significantly.

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Shorter tenure = higher EMI but far less total interest paid.

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Frequently Asked Questions

EMI stands for Equated Monthly Installment. It is the fixed monthly amount you pay to repay a loan. Each payment covers part of the principal and part of the interest, calculated on a reducing balance basis.

EMI = P × r × (1+r)^n ÷ ((1+r)^n - 1). Here P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and 100), and n is the number of monthly installments. This is the standard formula used by all banks.

You can lower your EMI by increasing the loan tenure (spreads payments over more months), making a larger down payment to reduce the principal, or securing a lower interest rate from your lender. Note that a longer tenure reduces EMI but increases total interest paid.

Yes. This calculator uses the standard reducing balance EMI formula used by all banks and NBFCs. The results will match what your bank calculates, assuming the same principal, rate, and tenure.

The EMI formula is the same for all loan types. The key differences are the loan amount (home loans are much larger), the tenure (home loans can be 20–30 years vs 1–5 years for personal loans), and the interest rate (home loans typically have lower rates due to collateral).