EMI Calculator
Calculate your Equated Monthly Installments (EMI) for any loan and plan your finances better.
How to Use the EMI Calculator?
Enter your loan amount, interest rate, and loan tenure to calculate your monthly EMI and total interest payable.
What is EMI?
Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs consist of both principal and interest components that are calculated using the following formula:
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where P = Principal loan amount, r = Monthly interest rate, n = Number of monthly installments
Types of Loans
- Home Loan: Typically 15-30 years tenure with lower interest rates (7-10%)
- Car Loan: Usually 3-7 years tenure with moderate interest rates (8-12%)
- Personal Loan: Short tenure of 1-5 years with higher interest rates (10-18%)
- Education Loan: Flexible tenure with competitive rates and moratorium period
Factors Affecting EMI
- Principal Amount: Higher loan amount increases EMI
- Interest Rate: Higher rates result in higher EMIs
- Loan Tenure: Longer tenure reduces EMI but increases total interest
- Processing Fees: Additional charges that affect the total cost
Tips to Reduce EMI Burden
- Make a higher down payment to reduce the principal amount
- Choose a longer tenure to reduce monthly EMI (but total interest increases)
- Compare interest rates from different lenders
- Consider prepayment options to reduce interest burden
- Maintain a good credit score for better interest rates
Understanding the Charts
- Pie Chart: Shows the proportion of principal amount vs total interest you'll pay
- Line Chart: Displays how your outstanding loan balance decreases over time
- Bar Chart: Compares monthly principal and interest payments for the first year
- Key Insight: Early payments consist mostly of interest, while later payments pay more principal