EMI Calculator

Calculate loan EMI for home, car, personal loans and more

Loan Details
EMI Results

Enter loan details and click Calculate to see EMI breakdown

Understanding EMI

What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off.

EMI 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

Key Benefits

  • Fixed monthly payments: Makes budgeting easier and predictable
  • Credit history building: Timely payments improve credit score
  • Tax benefits available: Home loan EMIs offer tax deductions
  • Preserve savings: Enables large purchases without depleting savings

Tips to Reduce EMI

  • 💡Make a larger down payment to reduce principal amount
  • 💡Choose a longer tenure for lower EMI (but higher total interest)
  • 💡Compare interest rates from different lenders before deciding
  • 💡Consider prepayment to reduce total interest burden

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