EMI Calculator

EMI is calculated using a standard formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
Where P = Principal loan amount, R = Monthly interest rate, N = Number of monthly installments.
This calculator applies the formula behind the scenes to provide precise monthly EMI figures. It also displays total payment and interest over the full loan term, which helps in comparing loans and avoiding surprises later.

The EMI Calculator provides three important values:

• Monthly EMI: What you’ll pay every month.

• Total Payment: Total amount you repay (principal + interest).

• Total Interest: The cost of borrowing.
  This breakdown helps users see exactly how much extra they’re paying for the loan and gives a clearer financial picture. It does not include one-time fees like processing charges or insurance.

Yes, this calculator can be used for most fixed-interest loans such as personal loans, car loans, education loans, or business loans. It is not suitable for credit cards or loans with variable interest rates. For mortgages with floating rates or hybrid repayment schemes, you may need a more specialized tool.

A longer loan tenure reduces your monthly EMI but increases the total interest paid over time. A shorter tenure results in higher monthly payments but significantly reduces the interest component. This calculator lets you simulate different tenures to help you decide the most cost-effective repayment plan.

Even if the interest rate is modest, the longer the loan term, the more months you’ll be paying interest. For example, over 15–30 years, the total interest paid can be nearly as much as (or even more than) the principal. That’s why understanding the impact of tenure is crucial, and this tool visualizes that instantly.

Yes! You can slide or manually input different interest rates to see real-time updates in EMI and total costs. This is especially useful when comparing bank offers or negotiating with lenders. Even a 1% rate change can significantly affect the total interest you pay.

Absolutely. It’s ideal for pre-loan planning. By simulating scenarios, you can budget your monthly expenses, choose a manageable EMI, and decide on the best tenure. It prevents overborrowing and helps ensure your loan is aligned with your financial goals.

No, this EMI Calculator is based on a fixed annual interest rate for the full loan term. If your loan has a floating rate, you’ll need to manually adjust the rate over different time periods or use an advanced amortization tool to simulate variability.

While this tool doesn’t directly simulate prepayments, you can shorten the loan term or reduce the loan amount to mimic early repayments. Some lenders may charge a prepayment penalty, so always confirm those terms. Early repayment significantly reduces interest costs, which you can test here.

Yes, in most fixed-rate loans, EMI remains constant throughout the tenure. Initially, a larger portion goes toward interest; gradually, more goes toward the principal. The calculator assumes this amortized structure to provide accurate results.

Total Payment is the complete amount you will pay over the life of the loan. It includes both the principal (amount you borrow) and the interest (cost of borrowing). This figure gives you clarity on how much more you’ll pay beyond the original loan amount.