EMI Calculator

Calculate your monthly loan EMI, total interest, and total repayment amount based on loan amount, interest rate, and loan tenure.

EMI Calculator

Loan Details

₹5,00,000
₹10K₹1Cr
10%
1%20%
5 years
1 Year30 Years

EMI Breakdown

Monthly EMI

₹0

Principal (100.0%)
Interest (0.0%)

Monthly EMI

₹0

Total Interest

₹0

Total Payment

₹0

Payment Summary

Loan Amount:₹5,00,000
Interest Rate:10% p.a.
Loan Tenure:0 months

Monthly EMI:₹0
Total Interest:₹0
Total Amount:₹0
How EMI Calculation Works

What is EMI?

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.

EMI Formula

EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]

P = Loan Amount (Principal)

r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)

n = Tenure in Months

Example Calculation

Loan Amount: ₹5,00,000
Interest Rate: 10% per annum
Tenure: 5 years (60 months)

Monthly EMI: ₹10,624

Fixed Monthly Payment

EMI remains constant throughout the loan tenure, making budgeting easier.

Principal & Interest

Each EMI payment covers both principal repayment and interest charges.

Loan Security

Regular EMI payments help build credit history and ensure loan closure.

Key Benefits

  • Predictable monthly payments
  • Better financial planning
  • Builds credit score
  • Tax benefits on certain loans
EMI Formula & Calculation Method

Mathematical Formula

EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]

P (Principal)Loan Amount
r (Rate)Monthly Interest Rate
n (Tenure)Number of Months

Step-by-Step Calculation

1

Convert Annual Rate to Monthly

Monthly Rate = Annual Rate ÷ 12 ÷ 100

2

Calculate (1 + r)^n

Compound factor for the tenure

3

Apply EMI Formula

Calculate numerator and denominator separately

Worked Example

Given:

• Loan Amount (P) = ₹5,00,000

• Annual Interest Rate = 10%

• Loan Tenure = 5 years

Calculation:

• Monthly Rate (r) = 10 ÷ 12 ÷ 100 = 0.008333

• Tenure (n) = 5 × 12 = 60 months

• (1 + r)^n = (1.008333)^60 = 1.6453

EMI = ₹10,624

Total Interest = ₹1,37,440

Total Payment = ₹6,37,440

Important Notes

Rounding

EMI is typically rounded to the nearest rupee

Processing Fees

Additional charges may apply separately

Variable Rates

EMI may change if interest rates are variable

Frequently Asked Questions