How to Use the EMI Calculator
Enter your loan amount, annual interest rate, and loan tenure in years. Select the loan type (Home, Car, Personal, or Education) using the toggle at the top. The EMI is calculated instantly as you type. Use the range sliders for quick adjustments. Switch to the Loan Comparison tab to compare two loan offers side by side.
EMI Calculator Formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1)P= Principal loan amountr= Monthly interest rate (annual rate ÷ 12 ÷ 100)n= Total number of monthly instalments (tenure × 12)
Example Calculation
For a ₹50 lakh home loan at 8.5% per annum for 20 years:
r = 8.5/12/100 = 0.007083; n = 240; EMI = 5000000 × 0.007083 × (1.007083)^240 / ((1.007083)^240 − 1)
Monthly EMI = ₹43,391
Frequently Asked Questions
What is the formula for calculating EMI?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P = principal amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = total number of monthly instalments.
What is a good EMI to salary ratio?
Financial advisors recommend keeping total EMIs below 40–50% of your monthly take-home salary. Going above 50% puts you at risk during income disruptions.
How can I reduce my EMI?
You can reduce EMI by: (1) increasing the loan tenure, (2) making a higher down payment to reduce principal, (3) negotiating a lower interest rate, or (4) prepaying a lump sum to reduce the outstanding principal.
Does prepayment reduce EMI or tenure?
Most lenders in India allow you to choose. Reducing tenure saves more interest overall. Reducing EMI improves monthly cash flow. Always check if your lender charges prepayment penalties.
What happens if I miss an EMI?
A missed EMI attracts a penalty (typically 1–2% of overdue amount), impacts your CIBIL credit score, and can trigger legal action after 90 days of default (NPA classification).