CalcVerse

EMI Calculator

An EMI (equated monthly instalment) is the fixed amount you repay every month on a loan. It covers that month’s interest plus part of the principal, so the loan is fully repaid at the end of the tenure.

  • Last updated
  • Formula tested against reference values

Your numbers

Tenure in

Result

Monthly EMI
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Calculating…

Total interest
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Total amount paid
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Number of EMIs
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How to use this calculator

  1. Enter or choose loan amount.
  2. Enter or choose interest rate (per year).
  3. Enter or choose loan tenure.
  4. Enter or choose tenure in.
  5. The monthly EMI updates as you type. Use Copy result or Share to keep it.

Formula

EMI=P×r×(1+r)n(1+r)n−1

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P
loan amount (principal)
r
monthly interest rate = annual rate ÷ 12 ÷ 100
n
number of monthly instalments

Worked example

  1. Loan amount P = ₹10,00,000, annual rate 8.5%, tenure 20 years.
  2. Monthly rate r = 8.5 ÷ 12 ÷ 100 = 0.0070833.
  3. Number of instalments n = 20 × 12 = 240.
  4. (1 + r)^n = 1.0070833^240 ≈ 5.4416.
  5. EMI = 10,00,000 × 0.0070833 × 5.4416 ÷ (5.4416 − 1) ≈ ₹8,678.23.

You would pay about ₹8,678 a month. Over 240 months that is about ₹20.83 lakh in total, of which roughly ₹10.83 lakh is interest.

What the result means

Early EMIs are mostly interest; later ones are mostly principal. That is why prepaying in the first few years saves far more interest than prepaying near the end. A longer tenure lowers the EMI but raises the total interest you pay.

Assumptions and limits

  • The interest rate stays fixed for the whole tenure.
  • Interest is charged monthly on the outstanding balance (reducing-balance method), which is how most bank loans work.
  • EMIs are paid at the end of each month, with no missed or extra payments.
  • Processing fees, insurance and taxes on fees are not included.
  • For floating-rate loans the lender may change the EMI or the tenure when rates change.

Questions

Does a longer tenure save money?

No. A longer tenure lowers each EMI but you pay interest for more months, so the total interest goes up. Compare the “total interest” figure for different tenures.

Is EMI calculated on a flat rate or a reducing balance?

This calculator uses the reducing-balance method, where interest is charged only on the amount still owed. A “flat rate” quote charges interest on the original amount for the whole term and costs considerably more for the same headline rate.

What happens to my EMI if I prepay?

A prepayment reduces the principal. Lenders usually let you keep the EMI and shorten the tenure, or keep the tenure and lower the EMI. Keeping the EMI saves more interest.

Sources

Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.