EMI Calculator

Calculate your monthly Equated Monthly Installment for loans

Loan Amount

Rate of Interest (p.a.)

Loan Tenure (Years)

What is an EMI Calculator?

An EMI (Equated Monthly Installment) calculator is a handy tool that calculates the monthly amount payable to the lender (bank or other financial institution) until your loan is fully repaid.

It helps you plan your monthly budget by giving you an exact figure of the outflow towards your loan. It can be used for Home Loans, Car Loans, and Personal Loans.

How is EMI Calculated?

The formula for EMI calculation is:

E = [P x R x (1+R)^N] / [(1+R)^N-1]

Where:

E is the EMI
P is the Principal Loan Amount
R is the monthly interest rate (Annual Rate / 12 / 100)
N is the loan tenure in months

Components of EMI

Your EMI consists of two parts:

Principal Component: The portion of the EMI that goes towards repaying the borrowed money.
Interest Component: The portion that pays the interest on the outstanding loan amount.

In the initial years of your loan, the interest component is higher. As the loan tenure progresses, the principal component increases and the interest component decreases.