Free Online EMI Calculator
Calculate your Equated Monthly Installments for home loans, car loans, personal loans, and more.
EMI Calculator
Calculate your monthly loan payments with ease
How to Use Our EMI Calculator
- Enter the loan amount you wish to borrow. Use the slider or type directly in the input field.
- Input the annual interest rate offered by your lender. This is the yearly rate of interest charged on your loan.
- Specify the loan tenure in years. This is the duration over which you'll repay the loan.
- Select the loan type from the dropdown menu. This helps us provide more relevant information.
- Click the "Calculate EMI" button to see your monthly installment amount and payment breakdown.
- Review the results including your monthly EMI, total interest payable, and the complete payment schedule.
Why Use Our EMI Calculator?
Accurate Calculations
Get precise EMI calculations using the standard EMI formula used by financial institutions.
Visual Breakdown
Visualize how much of your payment goes toward principal vs. interest with our charts.
Financial Planning
Plan your finances better by understanding your future loan obligations.
Privacy Guaranteed
Your financial data never leaves your browser. All calculations happen locally.
Understanding EMI
What is EMI?
EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
How is EMI Calculated?
The EMI calculation is based on the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
- P = Principal loan amount
- R = Monthly interest rate (annual rate divided by 12)
- N = Loan tenure in months
Factors Affecting Your EMI
- Loan Amount: Higher loan amounts result in higher EMIs.
- Interest Rate: Higher interest rates increase your EMI amount.
- Loan Tenure: Longer tenures reduce your EMI but increase total interest paid.
- Type of Interest: Fixed vs. floating rates can affect EMI stability.
Tips for Managing Your EMI
- Try to make a higher down payment to reduce your loan amount.
- Choose a shorter tenure if you can afford higher EMIs to save on interest.
- Compare interest rates from multiple lenders before finalizing a loan.
- Consider prepayment options to reduce your overall interest burden.
- Ensure your EMI doesn't exceed 40-50% of your monthly income.
Frequently Asked Questions
In reducing balance method, interest is calculated on the outstanding principal, which reduces with each EMI payment. In flat interest rate method, interest is calculated on the original principal throughout the loan tenure. Reducing balance method generally results in lower total interest payments.
Some lenders allow you to increase your EMI amount, which can help you pay off the loan faster. However, decreasing your EMI usually requires refinancing the loan with a longer tenure.
Missing an EMI payment can result in late payment fees, a negative impact on your credit score, and potential legal action from the lender if payments are consistently missed.
Paying more than your EMI can help reduce your principal faster, which decreases the total interest paid over the loan tenure and may shorten the loan period.
Longer loan tenures result in lower EMIs but higher total interest paid over the life of the loan. Shorter tenures mean higher EMIs but less total interest paid.
Financial experts generally recommend that your total EMI payments should not exceed 40-50% of your monthly income to maintain financial stability.