EMI / Loan Calculator

Calculate monthly installments for any loan type

Currency

Loan Amount

$10K$1M

Annual Interest Rate

1%36%

Loan Tenure

months

6 mo360 mo

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Adjust the sliders and click Calculate.

Frequently Asked Questions

EMI (Equated Monthly Installment) is a fixed payment made every month consisting of both principal and interest.

Yes, most lenders allow prepayment or part-payment of loans. Prepaying can reduce your outstanding principal and thus lower your total interest outgo. However, your EMI may remain the same unless you request a change in tenure or EMI amount from your lender.

If you make an extra payment (part-prepayment), your outstanding principal reduces. This can either reduce your EMI or your loan tenure, depending on your lender's policy and your preference. Contact your lender to adjust your EMI or tenure after a part-prepayment.

Your EMI depends on the loan amount, interest rate, and tenure. Higher loan amounts or interest rates increase EMI, while a longer tenure reduces EMI but increases total interest paid.

The standard EMI 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 (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. This formula ensures equal payments throughout the loan tenure.

With a flat (fixed) rate, interest is calculated on the full principal for the entire tenure, making your effective rate much higher than advertised. With a reducing balance rate, interest is charged only on the outstanding principal each month, so your interest cost decreases over time. Most home and car loans use the reducing balance method, while some personal loans use flat rates.

Making a lump-sum prepayment directly reduces your outstanding principal. This can either shorten your loan tenure (keeping the same EMI) or reduce your EMI (keeping the same tenure), depending on your lender's policy. Prepaying in the early years saves the most interest because the interest component is highest at the start of the loan.

You can lower your EMI by: (1) Increasing the loan tenure — spreading repayment over more months reduces each instalment. (2) Negotiating a lower interest rate or transferring to a lender offering a better rate. (3) Making a larger down payment to reduce the principal. (4) Improving your credit score to qualify for preferential rates.

Paying EMI builds ownership equity with each instalment, while rent is a pure expense. However, EMI also includes an interest component (especially in early years) and homeownership adds costs like maintenance and taxes. The decision depends on property prices, rent-to-EMI ratio, your investment horizon, and local market conditions. If the EMI is close to the rent for an equivalent property, buying generally makes long-term financial sense.

Yes. Missing even a single EMI payment can negatively impact your credit score and remain on your credit report for several years. It may also trigger late payment penalties from your lender. Setting up an auto-debit instruction (ECS mandate) ensures payments are never missed. A good repayment history is one of the most important factors in maintaining a healthy credit profile.

About This EMI Calculator

This free EMI calculator computes your monthly instalment payment for any loan — home loan, car loan, personal loan, or education loan — using the standard amortisation formula. Enter the loan amount, annual interest rate, and tenure in months to instantly see your EMI, total interest payable, and total repayment amount.

The calculator also generates a full amortisation schedule showing how much principal and interest you pay each month and how your outstanding balance reduces over the loan term.

When to use this calculator

Comparing loan offers from multiple lenders
Deciding how much loan you can comfortably afford
Understanding the total cost of borrowing over the full term
Planning prepayments to reduce total interest paid

Standards & References

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