EMI Calculator
Calculate your Equated Monthly Installment (EMI) for home loans, car loans, and personal loans. Know exactly how much you'll pay each month.
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are applied to both interest and principal each month so that over a specified time period, the loan is paid off in full.
How is EMI calculated?
EMI is calculated using the formula: EMI = P * r * (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate, and n is the number of monthly installments.
Does prepayment reduce EMI?
Yes, making a prepayment reduces your outstanding principal, which can either reduce your EMI amount or shorten your loan tenure, depending on the option you choose with your lender.
What factors affect EMI?
Three main factors affect your EMI: the loan amount (principal), the interest rate, and the loan tenure (repayment period). A higher loan amount or interest rate increases EMI, while a longer tenure decreases it.