EMI Calculator

What Is EMI?

EMI stands for equated monthly installment - the same fixed amount you pay every month until a loan is cleared. Each installment quietly does two jobs: it pays that month’s interest and chips away at the principal you borrowed. Early on most of it goes to interest; later, more goes to the principal.

The bar under the calculator splits everything you will pay into the original loan amount (blue) and the total interest (green). Stretching the tenure lowers each month’s EMI but raises the total interest, because you owe the money for longer.

EMI Formula

$$\text{EMI} = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}$$

P is principal, r is monthly interest rate, and n is the number of monthly payments.

Example

For a principal of 1,000,000 at 8.5% annually for 240 months:

1. Monthly rate = 8.5% / 12.
2. Number of payments = 240.
3. Use the EMI formula.

The calculator shows the estimated EMI, total amount paid, and total interest.

Useful Checks

• Increase the tenure to see the EMI fall and total interest rise.
• Increase the rate to see how sensitive the loan is.
• Compare EMI with your monthly budget before making decisions.

FAQ

Is EMI the same as monthly payment?

For many fixed-rate loans, yes. EMI is the fixed monthly amount paid over the loan tenure.

Why is the total paid higher than the principal?

The total includes interest paid over the life of the loan.