Tools / EMI Calculator
EMI Calculator
Enter the loan amount, interest rate and tenure to see your monthly instalment instantly.
How this EMI calculator works
EMI stands for equated monthly instalment: the fixed amount you pay your lender every month until a loan is cleared. Each instalment contains two parts, interest on the balance still owed and a portion of the original amount (the principal). Early instalments are mostly interest, and later ones are mostly principal.
The calculator uses the standard reducing-balance formula: EMI = P × r × (1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100) and n is the number of monthly payments.
Worked example
Take a loan of 1,000,000 at 12% a year for 5 years. The monthly rate is 1% and there are 60 payments. The EMI works out to about 22,244. Over 60 months you repay roughly 1,334,667, so the total interest is about 334,667. Choosing a shorter tenure raises the EMI but cuts the total interest sharply.
Tips before you borrow
Compare the total payment, not only the monthly figure. Ask your bank about processing fees, early-settlement charges and whether the rate is fixed or floating. Keep total monthly debt payments comfortably below what you can afford if your income drops for a few months. Banks may calculate instalments slightly differently, so treat this tool as a close estimate and confirm with your lender's schedule.
Frequently asked questions
Is the interest calculated on a reducing balance?
Yes. Interest each month is charged on the outstanding balance, which is how most bank loans work.
Does this include fees or insurance?
No. Processing fees, insurance and taxes vary by lender and are not included.
Can I use it for any currency?
Yes. The maths is the same for any currency, so enter the amount in your own currency.