EMI Calculator
Calculate your Equated Monthly Installment with detailed breakdown
Calculate your Equated Monthly Installment with detailed breakdown
EMI (Equated Monthly Installment) is the fixed amount you pay every month towards your loan repayment. It consists of both principal and interest components. The EMI is calculated using the following formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
Where:
Our EMI Calculator helps you understand your monthly payment obligations, total interest payable, and the overall cost of your loan. This is essential for planning your finances and choosing the right loan tenure.
What is EMI?
EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
How can I reduce my EMI?
You can reduce your EMI by: (1) Increasing the loan tenure (but this increases total interest), (2) Making a larger down payment to reduce the principal, (3) Negotiating a lower interest rate with your lender, or (4) Making prepayments to reduce the outstanding principal.
What is the difference between flat rate and reducing balance?
In a flat rate method, interest is calculated on the entire principal throughout the loan tenure. In a reducing balance method (most common for home loans), interest is calculated on the outstanding principal, which decreases with each EMI payment. Reducing balance method results in lower total interest.
Can I prepay my loan?
Yes, most loans allow prepayment. Making prepayments reduces your outstanding principal, which can either reduce your EMI amount or shorten your loan tenure. Check with your lender for any prepayment charges.
This free EMI Calculator helps you calculate your Equated Monthly Installment for home loans, personal loans, car loans, and other types of loans. Whether you're planning to buy a house, a car, or need a personal loan, understanding your EMI is crucial for financial planning. Our calculator provides instant results with a detailed breakdown of principal and interest components, helping you make informed borrowing decisions. Use this tool to compare different loan amounts, interest rates, and tenures to find the best option for your financial situation.