Personal Loan EMI Calculator

Guide and Formula

How EMI Calculator Works

This calculator helps you determine your Equated Monthly Installment (EMI) – the fixed amount you pay every month towards your loan repayment.

E = P \times r \times \frac{(1+r)^n}{(1+r)^n-1}

Where:

E = EMI Amount

P = Principal Loan Amount

r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)

n = Loan Tenure in Months

1. Enter Loan Amount: The total amount you wish to borrow.

2. Set Interest Rate: The annual interest rate offered by the bank.

3. Choose Tenure: The number of years you want to take to repay the loan.

The calculator instantly shows your Monthly EMI, Total Interest Payable, and Total Payment (Principal + Interest).

What is EMI?

EMI stands for Equated Monthly Installment. It is a fixed amount paid by a borrower to a lender at a specified date each calendar month.

Does a lower EMI mean cheaper loan?

Not necessarily. A lower EMI often results from a longer tenure, which means you pay more interest over time.

Can I prepay my loan?

Yes, most loans allow prepayment. It can significantly reduce your outstanding principal and total interest burden.

How does tenure affect EMI?

Longer tenure reduces monthly EMI but increases total interest payable. Shorter tenure increases EMI but saves interest cost.