EMI Calculator
How EMI Calculator Works
An EMI (Equated Monthly Installment) 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.
Our EMI calculator helps you determine your monthly payment for any loan, whether it's a home loan, personal loan, car loan, or any other type of installment loan. Understanding your EMI helps you plan your finances better and choose loan terms that fit your budget.
EMI Calculation Formula
The EMI is calculated using the following mathematical 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)
Component Breakdown
- Principal: The original loan amount borrowed
- Interest Rate: Annual percentage rate charged by lender
- Tenure: Total repayment period in years
- Total Interest: Total amount paid as interest over loan tenure
- Total Amount: Principal + Total Interest
Examples
Example 1: Home Loan
Loan Amount: $300,000
Interest Rate: 7.5% per annum
Tenure: 25 years
Monthly EMI: $2,246.21
Total Interest: $373,863
Total Amount: $673,863
Example 2: Personal Loan
Loan Amount: $50,000
Interest Rate: 12% per annum
Tenure: 5 years
Monthly EMI: $1,112.22
Total Interest: $16,733
Total Amount: $66,733
Example 3: Car Loan
Loan Amount: $25,000
Interest Rate: 9% per annum
Tenure: 7 years
Monthly EMI: $389.29
Total Interest: $7,700
Total Amount: $32,700