Calculator
EMI calculator
Work out your EMI, the loan amount you can take, the interest rate you are being charged, or how long repayment will take — enter any three and we calculate the fourth.
Find your emi
Fill in the other three values and press Calculate.
How it works
The maths behind the number
Every equated monthly instalment is built from three inputs: the principal you borrow, the rate you are charged and the number of months you take to repay. The standard reducing-balance formula is:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
- P — the principal, the amount actually disbursed to you.
- r — the monthly rate. An annual rate of 12% becomes 12 ÷ 12 ÷ 100 = 0.01.
- n — the tenure in months. Five years is 60.
Why the split changes every month
Interest is charged on what you still owe. In the first month that is almost the whole loan, so most of your EMI goes to interest. As the balance falls, the interest portion shrinks and the principal portion grows — even though the EMI itself never moves. This is why prepaying early saves far more than prepaying late, and why the last few years of a long loan are mostly principal.
What this calculator leaves out
The figure above is the pure loan cost. Your actual outgo also includes the processing fee, GST on that fee, any insurance premium the lender bundles in, and documentation charges. When you compare offers, compare the total cost of credit rather than the rate alone — two loans quoted at the same rate can differ by a substantial amount once fees are counted.
FAQs
EMI questions, answered
How is EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (the annual rate divided by 12, then by 100) and n is the number of monthly instalments. This calculator applies that formula on a reducing-balance basis, which is what retail lenders in India use.
What does reducing balance mean?
Interest is charged only on the principal still outstanding, not on the original amount. Early EMIs are mostly interest; later ones are mostly principal. The EMI stays the same throughout, but its split shifts month by month.
Does a longer tenure make a loan cheaper?
It makes the EMI smaller and the loan more expensive. Stretching the term means more months of interest on a balance that falls more slowly, so total interest rises — often substantially. Compare the total payable, not just the EMI.
Is the EMI shown here what I will actually pay?
It is accurate for the inputs you enter, but your real EMI depends on the rate the lender finally offers you. Processing fees, insurance premiums bundled into the loan and GST are not included in this figure.
How does prepayment change my EMI?
A part-prepayment reduces the outstanding principal. Most lenders then let you choose between keeping the EMI and shortening the tenure, or keeping the tenure and lowering the EMI. Shortening the tenure saves far more interest.
See what lenders will actually offer you
Checking offers is a soft enquiry, so your credit score is not affected.