About this EMI calculator
An EMI calculator (Equated Monthly Installment) shows the fixed monthly payment for a reducing-balance loan — the same approach banks use for home loans, car loans, and personal loans.
Use it before you apply so you know whether the payment fits your budget and how much total interest you will pay over the full tenure.
How to use
- Enter the loan principal (amount borrowed).
- Enter the annual interest rate offered by the lender.
- Enter tenure in years (and optional extra months).
- Review EMI, total interest, and total amount payable.
Formula
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Where P is principal, r is monthly interest rate (annual ÷ 12 ÷ 100), and n is number of months.
Worked examples
Example: $500,000 at 8.5% for 20 years → monthly EMI ≈ $4,339 (illustrative; currency formatting may vary by browser locale).
Tips
- A slightly lower rate or shorter tenure can save a large amount of interest.
- Prepayments reduce principal and usually cut total interest — confirm your lender’s rules.
- EMI here is principal + interest only; fees and insurance are extra.
Frequently asked questions
What is EMI?
EMI means Equated Monthly Installment — a fixed monthly payment covering interest and principal until the loan is repaid.
Does a higher tenure reduce EMI?
Yes, monthly EMI usually falls with a longer tenure, but total interest paid rises. Compare both numbers before deciding.