EMI Calculator
Calculate your Equated Monthly Installment (EMI) for home, car, or personal loans. Instant EMI breakdown with amortization schedule.
Monthly EMI
$0.00
How to Use the EMI Calculator
Enter your loan amount, annual interest rate, and loan tenure in either years or months. The calculator instantly shows your monthly EMI, total interest payable, total repayment amount, and the first 12 months of your amortization schedule.
EMI Formula
EMI = P ร r ร (1+r)โฟ / ((1+r)โฟ โ 1) Where: P = principal, r = monthly interest rate (annual รท 12 รท 100), n = number of monthly installments
Frequently Asked Questions
- EMI (Equated Monthly Installment) is a fixed payment made by a borrower to a lender on a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specific number of years, the loan is fully paid off.
- EMI is calculated using the formula: EMI = P ร r ร (1+r)โฟ / ((1+r)โฟ โ 1), where P is the principal loan amount, r is the monthly interest rate (annual rate รท 12 รท 100), and n is the number of monthly installments.
- An EMI (Equated Monthly Installment) is a specific type of installment that remains constant throughout the loan tenure. A general loan installment could vary each month. EMI simplifies budgeting by keeping your payment amount the same every month.
- You can reduce your EMI by: (1) increasing the loan tenure โ longer tenure means lower monthly payment; (2) making a larger down payment to reduce the principal; (3) negotiating a lower interest rate; or (4) prepaying part of the loan to reduce the outstanding principal.
- For a home loan of $200,000 at 7% annual interest for 20 years, the EMI would be approximately $1,551/month. You'd pay about $172,000 in total interest over the life of the loan. Use our calculator above to get exact figures for your loan.
- For a car loan of $25,000 at 6% annual interest for 5 years (60 months), the EMI would be approximately $483/month. Total interest paid would be around $3,972. Shorter terms mean higher EMI but less total interest.
- Missing an EMI can lead to: (1) late payment fees and penalties; (2) a negative impact on your credit score; (3) accrual of additional interest on the overdue amount; and (4) in severe cases, legal action or repossession of the asset. Always contact your lender before missing a payment.
- In a flat rate method, interest is calculated on the full principal for the entire tenure โ making the effective rate much higher. In the reducing balance (diminishing rate) method, interest is calculated only on the outstanding principal each month, which is what our EMI calculator uses and what most banks apply.
- Rearranging the EMI formula: P = EMI ร ((1+r)โฟ โ 1) / (r ร (1+r)โฟ). For example, if you can afford $500/month at 8% for 5 years, your maximum loan amount would be approximately $24,886.
- Prepayment reduces the outstanding principal, which means future interest is calculated on a smaller amount. You can either choose to reduce the EMI while keeping the tenure the same, or reduce the tenure while keeping the EMI the same. Reducing tenure saves more interest overall.