Loan EMI Calculator Home, Car and Personal Loans

What is EMI?

Equated Monthly Installment, or EMI for short, is the fixed amount you pay each month to a bank or financial institution until the entire loan is repaid. This amount includes both the interest on the loan and a portion of the principal. In the beginning, a larger part of your EMI goes toward paying the interest, while the part that goes toward the principal is smaller. As you make payments over time, the interest portion decreases and the principal portion increases.

EMI is calculated as E = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where E is the EMI, P is the principal loan amount, r is the monthly interest rate and n is the tenure in months.

For example, if you borrow ₹10,00,000 at 10.5% annual interest for 10 years, the EMI is approximately ₹13,493 for 120 months.

How to Use EMI Calculator?

Use this calculator to determine the Equated Monthly Installment for home loans, car loans, personal loans, education loans, or another fully amortizing loan. Enter the principal loan amount, loan term, and rate of interest. For a car loan, you can also choose EMI in arrears or EMI in advance.

The calculator shows the monthly EMI, total interest payable, total payment and the principal/interest breakdown. The payment schedule shows how each monthly payment reduces the balance.

Floating Rate EMI Calculation

For a floating or variable rate loan, consider two different scenarios: an optimistic scenario where the rate decreases by 1% to 3%, and a pessimistic scenario where it increases by 1% to 3%. Comparing both helps determine an EMI you can comfortably afford throughout a long-term commitment.