How This Works
An EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan, covering both principal and interest, over the loan tenure. This calculator uses the standard reducing-balance formula banks use in India for home loans, car loans, and personal loans.
Enter your loan amount, interest rate, and tenure to see your monthly EMI, the total interest you’ll pay over the life of the loan, and the total amount repaid (principal + interest).
Frequently Asked Questions
How is EMI calculated?
EMI is calculated on a reducing balance basis: each instalment first covers the interest due on the outstanding principal, and the remainder reduces the principal. As the principal shrinks, more of each subsequent EMI goes toward principal repayment.
Does a longer tenure reduce my EMI?
Yes — spreading the same loan amount over a longer tenure lowers the monthly EMI, but increases the total interest paid over the life of the loan. A shorter tenure means a higher EMI but less total interest.
Can I reduce my total interest by prepaying the loan?
Yes, prepaying principal (a lump-sum payment against the loan) reduces the outstanding balance on which future interest is calculated, which can meaningfully cut down total interest paid — especially if done early in the loan tenure.
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