EMI Calculator

How to use EMI Calculator

• Enter Loan Amount: Adjust the first slider or type the amount you want to borrow (e.g., ₹20,00,000).
• Set Interest Rate: Specify the annual interest rate offered by the bank or financial institution.
• Choose Tenure: Set the duration in years for which you wish to take the loan. The calculator will instantly calculate your monthly installments.

What is a Loan EMI?

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.

Formula Used for Loan EMI Calculations

EMI calculation uses the standard reducing balance compounding formula:

Example of a Loan EMI Calculation

If you borrow ₹10,00,000 at a 10% annual interest rate for 5 years (60 months):

• Monthly Rate (r): 10 / (12 × 100) = 0.008333
• Number of Months (n): 5 × 12 = 60 months
• EMI = 10,00,000 × 0.008333 × (1.008333)^60 / ((1.008333)^60 - 1) = ₹21,247 per month.

EMI Breakdowns for Common Loan Amounts

Here is a quick reference table showing estimated monthly EMIs, total interest, and total payout for common loan amounts at a standard 9% interest rate for a 15-year tenure:

Key Benefits of Calculating EMIs Online

• Instant & Error-free: Eliminates complex manual calculations and provides quick results in a millisecond.
• Financial Budgeting: Allows you to customize different parameters (loan tenure, interest rate) to find a sweet spot that fits your budget.
• Full Transparency: Shows you exactly how much of your total payment goes towards the principal versus the interest accrued.