EMI Calculator
Plan your loans with precision. Calculate your EMI and explore how prepayments and step-up options can accelerate your repayment.
Adjust sliders to see EMI details.
What is an EMI?
EMI stands for Equated Monthly Installment. It 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 paid off in full.
In an EMI, the payment is split between the principal component and the interest component. In the initial years of the loan, the interest component is much larger than the principal component. As the loan matures, the principal component increases and the interest portion decreases. Our calculator's amortization schedule clearly shows this breakdown month by month.
How is EMI Calculated?
The mathematical formula to calculate EMI is:
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
- P = Principal loan amount
- r = Monthly rate of interest (annual rate / 12)
- n = Number of monthly installments (loan tenure in years × 12)
This formula can be complex to use manually, which is why our EMI calculator is a valuable tool for anyone looking to take out a loan.
Advanced Repayment Strategies
Our calculator goes beyond a simple EMI calculation by allowing you to model advanced strategies:
- Prepayments: See how making an extra payment each year can drastically reduce your total interest and shorten your loan tenure.
- Step-Up EMI: Model the effect of increasing your EMI payment by a certain percentage each year, which is a great strategy to align your loan repayment with your salary growth.