Calculate EMI, total interest and payment instantly.
EMI, or Equated Monthly Installment, is the fixed amount paid every month to repay a loan. It includes both the principal amount and the interest charged by the lender. EMI allows borrowers to repay loans in manageable monthly payments instead of paying a large lump sum.
The EMI amount depends on three key factors: loan amount, interest rate, and tenure. Financial institutions use a standard formula to ensure accurate and consistent calculations.
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where P is the loan amount, R is the monthly interest rate, and N is the number of monthly installments.
If you take a loan of ₹1,00,000 at an annual interest rate of 10% for 12 months, the EMI will be calculated using the above formula. This helps you understand your repayment plan clearly.
Is EMI fixed every month?
Yes, EMI usually remains fixed unless there is a change in interest rate.
Can I reduce my EMI amount?
Yes, by increasing loan tenure or negotiating lower interest rates.