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EMI Calculator - Calculate Your Loan EMI Instantly

🇮🇳 Built for the Indian Market: Calculate Equated Monthly Installments for home loans, car loans, and personal loans in Indian Rupees.
Get detailed breakdown of principal and interest with amortization schedule!

What is EMI? An Equated Monthly Installment is a fixed payment made by borrowers to lenders each month for loans. EMI calculations are most commonly used in India for home loans, car loans, and personal loans. This calculator uses Indian Rupees (₹) and follows Indian banking standards. Learn more about EMI

%
Yr
Monthly EMI ₹19,566
Principal Amount ₹10,00,000
Total Interest ₹1,73,969
Total Amount ₹11,73,969
Principal Amount
Interest Amount

Your Amortization Details (Yearly/Monthly)

Amortization Schedule

Year Principal Paid Interest Paid Total Payment Balance

Your EMI Calculation Results

Loan Amount

₹10,00,000

Interest Rate

6.5%

Loan Tenure

5 Years

Monthly EMI

₹19,566

Total Interest

₹1,73,969

Total Amount Payable

₹11,73,969

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How EMI Works

An Equated Monthly Installment (EMI) 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 fully paid off.

EMI Calculation Formula:

EMI = [P × R × (1 + R)^N] / [(1 + R)^N - 1]

Where:

  • P = Principal loan amount
  • R = Monthly interest rate (Annual rate / 12 / 100)
  • N = Number of monthly installments (Years × 12)

Benefits of EMI:

  • Fixed Payments: EMI amount remains constant throughout the loan tenure
  • Budget Planning: Helps in better financial planning and budgeting
  • Interest and Principal: Each EMI covers both interest and principal repayment
  • Credit Building: Regular EMI payments help build a good credit score

Factors Affecting EMI:

  • Loan Amount: Higher loan amount means higher EMI
  • Interest Rate: Higher interest rate increases EMI
  • Loan Tenure: Longer tenure reduces EMI but increases total interest
  • Processing Fees: May be added to principal amount

EMI Calculator FAQ

What is EMI and how is it calculated?
EMI stands for Equated Monthly Installment. It is a fixed amount paid monthly to repay a loan. EMI is calculated using the formula: EMI = [P × R × (1 + R)^N] / [(1 + R)^N - 1], where P is principal, R is monthly interest rate, and N is number of installments.
How accurate is this EMI calculator?
Our EMI calculator provides highly accurate results using the standard EMI calculation formula used by banks and financial institutions. However, actual EMI may vary slightly due to processing fees, insurance, and other charges.
What should be the ideal EMI to income ratio?
Financial experts recommend that your total EMI (including all loans) should not exceed 40-50% of your monthly income. This ensures you have enough funds for other expenses and emergencies.
Can I prepay my loan to reduce EMI burden?
Yes, most banks allow loan prepayment. You can either reduce the EMI amount or the loan tenure. Prepayment significantly reduces the total interest paid over the loan duration.