Easily calculate your Equated Monthly Instalment (EMI) in any currency.
Our EMI calculator uses the standard EMI calculation formula to determine your monthly payment. The formula is: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the Principal loan amount, r is the monthly interest rate, and n is the loan tenure in months.
This tool is perfect as a home loan EMI calculator, car loan EMI calculator, or for any personal loan. By inputting your loan details, you can instantly see your monthly EMI and, more importantly, the total interest payable over the entire loan term, giving you a clear picture of the total cost of your loan.
EMI stands for Equated Monthly Instalment. 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.
A fixed interest rate remains the same throughout the loan tenure, so your EMI amount will not change. A floating interest rate is linked to a benchmark rate and can change over time. This means your EMI amount may increase or decrease depending on market conditions.
You can reduce the total interest payable by: 1) Opting for a shorter loan tenure, 2) Making a larger down payment to reduce the principal amount, 3) Prepaying parts of your loan whenever you have surplus funds, or 4) Refinancing your loan at a lower loan interest rate.
A loan amortization schedule is a detailed table showing each periodic payment on a loan. It breaks down how much of each payment goes towards interest and how much goes towards paying down the principal balance. Initially, a larger portion of your EMI goes towards interest, which gradually decreases over time.
Not necessarily. A lower EMI often means a longer loan tenure. While this makes monthly payments more manageable, a longer tenure results in you paying significantly more in total interest over the life of the loan. It's important to balance a comfortable monthly EMI with the lowest possible total interest.