EMI Calculator: How to Calculate Loan EMI (Home, Car, Personal)

An EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. An EMI calculator tells you that monthly amount, plus the total interest you will pay over the loan period.

How is EMI calculated?

EMI uses the reducing-balance method. It depends on three things: the loan amount (principal), the interest rate, and the tenure (loan period). Each EMI pays off part interest and part principal.

The EMI formula

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months. You do not need to do this by hand — the calculator does it instantly.

Example

For a ₹10,00,000 home loan at 9% per year for 20 years, the EMI is about ₹8,997 per month. Over 20 years you would pay around ₹11.6 lakh in interest on top of the principal.

Tips to reduce your EMI or interest

• A longer tenure lowers the EMI but increases total interest.
• A shorter tenure raises the EMI but saves a lot of interest.
• Even a small rate difference changes the total interest a lot — compare lenders.
• Prepaying part of the loan reduces future interest.

How to use our free EMI calculator

1. Open the EMI calculator.
2. Enter the loan amount, interest rate and tenure.
3. Click Calculate to see your monthly EMI, total interest and total payment.