How to use this EMI calculator
Before you sign for any loan, the equated monthly instalment (EMI) is the number that will shape your budget for years. It blends principal and interest into a fixed monthly payment, but how much of each you pay shifts dramatically over the loan's life.
This calculator computes your EMI, total interest and total repayment from the loan amount, interest rate and tenure, so you can see the true cost of borrowing before a lender does the talking.
How the EMI is calculated
The calculator uses the standard reducing-balance formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is principal, r the monthly rate and n the number of months.
Interest is charged on the outstanding balance, so early EMIs are mostly interest and later ones mostly principal.
The tenure trade-off
A longer tenure lowers the monthly EMI but sharply increases the total interest you pay over the loan's life. A shorter tenure costs more each month but far less overall.
Adjust the tenure slider to find a balance between an affordable EMI and a manageable total interest outgo.
What the EMI excludes
The figure here is principal and interest only. Lenders also charge processing fees, may bundle insurance, and floating rates can reset over time, all of which change your real cost.
Prepaying when you have surplus funds reduces the outstanding principal and can save a large amount of interest.