EMI Calculator

What is EMI?

EMI stands for Equated Monthly Instalment. It is the fixed monthly payment a borrower makes to a lender until the loan is fully repaid. Each EMI includes one part that pays down the principal and one part that covers interest.

In the early stage of a loan, a larger share of the EMI goes toward interest. As the outstanding balance decreases, more of each payment starts reducing the principal. That shift is what you see in the amortization schedule below the calculator.

EMI formula

The standard EMI formula is:

EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)

• P: principal loan amount
• r: monthly interest rate
• n: tenure in months

How to use this EMI calculator

1. Select a currency relevant to your market.
2. Adjust the loan amount to match the expected borrowing size.
3. Set the annual interest rate offered by your lender.
4. Choose the loan tenure in months.
5. Review the monthly EMI, total interest, and total repayment instantly.
6. Open the amortization schedule to inspect the month-by-month breakdown.

How to reduce your EMI

• Increase loan tenure to spread the balance across more months.
• Negotiate a lower interest rate before accepting the loan.
• Make a larger down payment to reduce the financed amount.
• Prepay part of the principal when your lender allows it.