EMI Calculator

An Equated Monthly Installment, or EMI, is the fixed amount you pay your lender every month until a loan is fully repaid. Each EMI is made up of two parts: a portion that goes toward the principal (the amount you borrowed) and a portion that covers the interest. The EMI itself stays constant over the loan term, but its composition shifts — in the early months most of it is interest, and as the outstanding balance falls, more of each payment goes toward the principal.

The standard method, used by virtually all home, car and personal loans, is the reducing-balance method, where interest is charged only on the outstanding balance. The EMI is calculated with the formula EMI = P × i × (1+i)^n ÷ [(1+i)^n − 1], where P is the principal, i is the monthly interest rate, and n is the number of months. For example, a ₹10,00,000 loan at 9% over 20 years works out to an EMI of about ₹8,997, with total interest of roughly ₹11.6 lakh over the full term — often more than the amount borrowed, which surprises many first-time borrowers.

Three levers control your EMI. A larger loan raises it directly. A higher interest rate raises it and dramatically increases total interest. And a longer tenure lowers the monthly EMI but increases the total interest paid, because you're borrowing for longer — a key trade-off to understand. Many borrowers stretch the tenure to make the monthly figure comfortable, without realising how much extra interest that adds over the years.

The EMI calculator helps you see all of this before you commit: whether the monthly payment fits your budget, how much the loan really costs in total, and how changing the tenure or shopping for a lower rate affects both. A useful guideline is to keep your total EMIs within a manageable share of your monthly income so you're not overstretched. Always confirm the final figures with your lender, as processing fees and rate changes can affect the actual cost.