EMI Calculator
Work out the monthly EMI for any home, car, personal or business loan, and see exactly how much interest you will pay.
Estimate your monthly EMI
Drag the sliders to adjust
What is an EMI and how is it calculated?
An EMI, or Equated Monthly Instalment, is the fixed amount you repay to a lender every month until your loan is fully paid off. Each instalment covers part of the borrowed principal plus the interest charged on the outstanding balance.
Because the amount stays the same every month, EMIs make budgeting easy. In the early months a larger share goes towards interest; as the principal shrinks, more of each EMI starts reducing your actual loan balance.
The EMI formula
EMI = P × r × (1 + r)n ÷ [ (1 + r)n − 1 ]
where P = loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = number of monthly instalments (years × 12).
Typical loans and EMI ranges
| Loan type | Typical rate | Common tenure |
|---|---|---|
| Home loan | 8% - 9.5% | 15 - 30 yrs |
| Car loan | 9% - 12% | 3 - 7 yrs |
| Personal loan | 11% - 24% | 1 - 5 yrs |
| Business loan | 14% - 24% | 1 - 5 yrs |
| Education loan | 9% - 13% | 5 - 15 yrs |
Rates are indicative and vary by lender, credit score and loan amount.
What affects your EMI?
Three levers decide how much you pay each month and how much the loan costs in total.
Loan amount
A bigger principal means a bigger EMI. Putting down a larger down payment reduces the amount you borrow and lowers every instalment.
Interest rate
Even a 0.5% difference in rate can change your total interest by lakhs on a long loan. A strong credit score helps you negotiate a lower rate.
Tenure
A longer tenure lowers the monthly EMI but increases total interest. A shorter tenure costs more each month but far less overall.
Plan before you borrow
Trying to work EMIs out by hand is slow and error-prone. Move the sliders above to instantly compare loan amounts, rates and tenures, and see exactly how much interest each option costs you over time.
- Make a larger down payment to reduce the principal.
- Compare lenders and negotiate a lower interest rate.
- Pick a tenure that balances monthly comfort with total cost.
- Prepay whenever you can to cut the outstanding balance.
EMI Calculator FAQs
EMI uses the formula P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of monthly instalments. The calculator above applies this instantly as you move the sliders.
Yes, a longer tenure spreads the loan over more months, lowering each EMI. However, you end up paying more total interest over the life of the loan.
Interest is charged on the outstanding balance, which is highest at the start. So early EMIs are interest-heavy and later ones repay more principal.
Yes. The EMI formula is the same for all reducing-balance loans, so this calculator works for home, car, personal, education and business loans.
Keep all your EMIs combined under roughly 40 to 50 percent of your monthly take-home pay. Lenders apply a similar cap when approving loans, so a lower ratio improves both your finances and your loan eligibility.
Most lenders let you choose. Cutting the tenure keeps the EMI unchanged but saves the most interest; cutting the EMI lowers your monthly payment but saves less interest over the loan.
You may be charged a late fee and penal interest, and repeated misses can hurt your credit score. If you expect trouble paying, contact your lender early to discuss restructuring or a revised tenure.
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