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TOOL 02

EMI Calculator

Find your monthly payment and how much of it is interest. Change the numbers to compare loans.

Monthly EMI
₹10,501
Total interest
₹1,30,056
Total payment
₹6,30,056
Principal vs interest
PrincipalInterest

Calculate your loan EMI in 3 steps

01
Enter the loan amount

Type the amount you plan to borrow — for a home, car, bike or personal loan.

02
Add the interest rate and tenure

Enter the annual interest rate your lender quoted and the repayment period in years.

03
Read your EMI instantly

See the monthly EMI, total interest and total repayment — plus a visual split of principal vs interest. Change any number to compare loans live.

What you can do with it

Compare loan offers

Two banks, two rates? Punch in each offer and see which one actually costs less over the full tenure.

Pick the right tenure

A longer tenure lowers the EMI but raises total interest. Try 3, 5 and 7 years side by side before you sign.

Plan your monthly budget

Check whether the EMI fits comfortably in your income before you commit — lenders typically like EMIs under 40–50% of take-home pay.

See the real cost of a loan

The principal-vs-interest bar shows how much of your repayment is pure interest — often an eye-opener.

Benefits

How EMI is actually calculated

EMI stands for Equated Monthly Instalment — the fixed amount you pay every month toward a loan until it's fully repaid. Each instalment is a mix of two parts: interest (the lender's charge for lending you the money) and principal (the actual amount you originally borrowed). In the early months of a loan, most of your EMI goes toward interest; only in the later months does the principal portion grow larger. This is why paying off a loan early saves more interest than people expect — you're skipping the months where interest still made up most of the payment.

The formula behind it is: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount (principal), r is the monthly interest rate (your annual rate divided by 12, then divided by 100), and n is the total number of monthly instalments (loan tenure in months). This calculator runs that exact formula the moment you change any input, so you always see a live, accurate number.

For example, a ₹5,00,000 loan at 9.5% annual interest over 5 years (60 months) works out to a monthly rate of about 0.79%. Plugging that into the formula gives an EMI of roughly ₹10,500 a month — of which the very first instalment is mostly interest (around ₹3,960) and only about ₹6,540 goes toward the principal. By the last few months of the loan, that split flips almost entirely the other way.

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Important note

This tool provides an estimate based on the values you enter. Actual loan, tax, salary or investment results can differ. Verify important financial decisions with the relevant lender, employer, tax rules or qualified professional.

Frequently asked questions

What is an EMI?

EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month until the loan is repaid. Each EMI has two parts: interest on the outstanding balance, and repayment of the principal. Early EMIs are mostly interest; later ones are mostly principal.

How is EMI calculated?

The standard formula is EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. This calculator applies exactly this formula, the same one banks use for fixed-rate loans.

For example, what is the EMI on a ₹5 lakh loan?

A ₹5,00,000 loan at 9.5% per year for 5 years works out to an EMI of about ₹10,501 per month. Over the full tenure you'd pay roughly ₹1.3 lakh as interest, taking the total repayment to about ₹6.3 lakh. Enter your own numbers above for exact figures.

Does a longer tenure reduce my EMI?

Yes — spreading the loan over more months lowers each instalment. But you pay interest for longer, so the total interest goes up. A shorter tenure means a higher EMI but a cheaper loan overall. Try both in the calculator to see the trade-off.

Does this work for home, car and personal loans?

Yes. The EMI formula is the same for any fixed-rate loan — home, car, bike, personal, education or business. Just enter the amount, rate and tenure for your specific loan.

Is this EMI calculator free and private?

Yes. It's completely free with no sign-up, and everything is calculated in your browser — the loan details you enter are never uploaded or stored anywhere.

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