🏦 EMI Calculator
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
Frequently Asked Questions
How do I use the EMI Calculator?
Enter your Loan Amount, Interest Rate (% p.a.), and Loan Tenure (using the preset buttons or your own values), then click "Calculate EMI" to see your monthly EMI, total interest payable, total payment, and a detailed month-wise or year-wise amortisation schedule.
How is EMI calculated?
EMI is calculated using the formula EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly instalments (loan tenure in months).
What does EMI stand for?
EMI stands for Equated Monthly Instalment — a fixed payment amount made by a borrower to a lender at a specified date each calendar month, consisting of both principal and interest components.
Why does the EMI stay the same but the interest and principal split change every month?
In the early months, the outstanding loan balance is high, so a larger portion of the EMI goes towards interest. As the balance reduces over time, the interest portion shrinks and the principal portion increases — even though the total EMI amount remains constant.
How does loan tenure affect the EMI amount?
A longer tenure reduces the monthly EMI amount but increases the total interest paid over the life of the loan. A shorter tenure increases the EMI but reduces the total interest paid.
Does a higher interest rate always mean a higher EMI?
Yes, for the same loan amount and tenure, a higher annual interest rate results in a higher EMI and a higher total interest payable, since the rate directly increases the per-month interest charged on the outstanding balance.
What is an amortisation schedule?
An amortisation schedule is a table showing each EMI payment over the loan tenure, broken down into the principal and interest portions, along with the remaining outstanding loan balance after each payment.
What happens to my EMI if the interest rate changes mid-tenure (floating rate loans)?
For floating-rate loans, banks typically keep the EMI fixed and instead adjust the remaining tenure when the rate changes — a rate hike extends your tenure, a rate cut shortens it. Some lenders offer the option to increase the EMI instead. To estimate the new figures yourself, re-run this calculator with the revised rate and your current outstanding principal as the loan amount.
What EMI-to-income ratio is considered safe?
Most Indian lenders prefer your total EMIs (including this one) to stay within 40-50% of your monthly take-home income (the FOIR — Fixed Obligation to Income Ratio). Staying below this threshold not only improves loan approval chances but also leaves enough margin for living expenses and savings. Use the Loan Eligibility Calculator to check this against your income.