EMI Calculator

EMI stands for Equated Monthly Installment. It is the fixed amount you pay every month for a loan until the principal and interest are fully repaid. A loan EMI is designed to spread the repayment cost evenly over the chosen tenure so you can budget your payments reliably.

This calculator is useful for people comparing home loans, car loans, personal loans, education loans, and other fixed-rate borrowing options. It helps you understand the monthly obligation before you commit.

EMI is based on the loan amount, the effective monthly interest rate, and the total number of installments. The monthly interest rate converts the annual rate into a monthly figure, so the EMI formula reflects how interest compounds over each month of the loan.

In this calculator, the monthly rate is derived from your annual rate. Then the formula calculates a fixed payment that covers both interest and principal across every month of the tenure. For broader money planning, you can also compare outcomes with the SIP Calculator and other financial tools.

The standard EMI formula is:

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1)

Where:

• P = loan amount
• r = monthly interest rate (annual rate / 12 / 100)
• n = total number of monthly installments

This page uses that same formula and shows the resulting monthly EMI, total payment, and total interest clearly. It is designed for fast planning, not lender-specific approval checks, so final offers may still vary.

Prepayment—paying extra toward your loan principal—can significantly reduce your total interest and shorten the loan tenure. This calculator's Advanced Options let you simulate two types of prepayment:

• One‑time prepayment – A lump‑sum payment in a specific year (e.g., a bonus or windfall).
• Extra monthly payment – A fixed additional amount paid every month alongside your regular EMI.

Both methods reduce the outstanding principal faster, which lowers the interest charged in subsequent months. The calculator shows exactly how much interest you save and how many months (or years) you cut from the loan. Even a small extra payment can lead to substantial long‑term savings.