What is an EMI?
An EMI (equated monthly installment) is the fixed amount you pay your lender every month until a loan is repaid. Each payment covers some interest and some of the loan itself. Early payments are mostly interest, and later payments are mostly principal.
EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P = loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly payments
How to use this calculator
- Enter the loan amount. Pick your currency next to it.
- Enter the interest rate. Use the yearly rate from your lender.
- Enter the tenure. Choose years or months.
- Read your result. Your EMI, total interest and total payment update instantly.
Worked example
For a loan of ₹10,00,000 at 9% a year for 20 years, the monthly rate is 9 ÷ 12 ÷ 100 = 0.0075 and there are 240 payments. The formula gives an EMI of ₹8,997. Over 240 months you repay ₹21,59,342, of which ₹11,59,342 is interest.
How tenure changes your EMI
A longer tenure lowers each payment but raises the total interest. This table shows a ₹10,00,000 loan at 9% a year.
| Tenure | Monthly EMI | Total interest | Total payment |
|---|---|---|---|
| 5 years | ₹20,758 | ₹2,45,501 | ₹12,45,501 |
| 10 years | ₹12,668 | ₹5,20,109 | ₹15,20,109 |
| 15 years | ₹10,143 | ₹8,25,680 | ₹18,25,680 |
| 20 years | ₹8,997 | ₹11,59,342 | ₹21,59,342 |
| 25 years | ₹8,392 | ₹15,17,589 | ₹25,17,589 |
| 30 years | ₹8,046 | ₹18,96,641 | ₹28,96,641 |
What this estimate doesn’t include
This calculator assumes a fixed rate and equal monthly payments. It doesn’t include processing fees, insurance, taxes or prepayments, and a floating rate can change your EMI during the loan. Your lender’s loan agreement has the exact figures.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate and n is the number of monthly payments.
Does a longer tenure save money?
A longer tenure lowers your monthly EMI, but you pay more interest in total. A shorter tenure raises the EMI and lowers the total cost.
Is this the exact EMI my lender will charge?
It is an estimate. Lenders may round differently, add fees or use a floating rate, so check your loan agreement for the exact amount.
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