EMI Calculator

Work out your monthly loan instalment from principal, rate and tenure.

Overview

Computes the equated monthly instalment required to amortise a home, car, or personal loan under reducing-balance interest rates.

Formula & Calculation Method

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

P = Principal loan amount, r = Monthly interest rate (Annual rate / 12 / 100), n = Total tenure in months.

Worked Example: ₹10 Lakh Home Loan at 8.5% for 15 Years

Inputs: Principal = ₹10,00,000 | Interest Rate = 8.5% p.a. | Tenure = 180 Months

  • Monthly interest rate r = 8.5 / 12 / 100 = 0.0070833
  • Compounding factor (1.0070833)^180 = 3.5598
  • Monthly EMI E = ₹9,847 per month

Summary: Monthly EMI = ₹9,847 | Total Interest = ₹7,72,540 | Total Repayment = ₹17,72,540

Common Use Cases

  • Home Loan Planning: Compare monthly outgo across 15, 20, and 30-year loan tenures.
  • Auto Financing: Verify dealership loan quotes against true reducing-balance calculations.
  • Refinancing: Determine if balance transfer savings offset processing and valuation fees.

Frequently Asked Questions

How does prepaying home loan principal affect EMI?

Prepaying principal cuts your outstanding balance directly. You can choose to reduce your monthly EMI amount or keep the EMI constant to shorten your overall tenure.

What is the difference between fixed and floating loan rates?

Fixed rates stay constant throughout the tenure, whereas floating rates fluctuate according to the lender's benchmark repo rate (RBLR).

Are processing fees included in the monthly EMI?

No. Administrative fees and GST are paid upfront at the time of loan sanction.

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