EMI Calculator

EMI is calculated using the formula EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months.

Yes, a longer tenure reduces the monthly EMI, but increases the total interest paid over the life of the loan.

Most Indian lenders allow prepayment or part-payment, which reduces the outstanding principal and therefore the total interest payable. Check your loan agreement for any prepayment charges.

When the interest rate is exactly 0%, this calculator switches to a simpler calculation: the EMI is just the principal divided evenly across the tenure, with no interest component. For example, a ₹60,000 purchase on a 12-month 0% EMI plan works out to a flat ₹5,000 per month with ₹0 total interest. In practice, many "0% EMI" retail offers still bundle in a processing fee or a higher upfront price, which this calculator does not account for since it does not include processing fees, insurance, or other lender charges.

No, they push total interest in the same direction but through different mechanics. Stretching a ₹5,00,000 loan at 8.5% from 120 to 240 months lowers the EMI from ₹6,199.28 to ₹4,339.12, but nearly doubles total interest from ₹2,43,913.60 to ₹5,41,388.80, because interest accrues over far more months. Doubling the rate instead, from 8.5% to 17% on the same ₹5,00,000 over 240 months, pushes total interest even higher, to ₹12,60,160, and raises the EMI itself to ₹7,334, because every month's interest charge on the outstanding balance is bigger, not just the number of months it is charged.

The headline EMI is a fixed amount that does not change from month to month, but the split between principal and interest within that fixed payment shifts every month. Early in the loan, the outstanding balance is largest, so most of the EMI covers interest and only a small part reduces the principal. As the balance shrinks, later installments flip toward being mostly principal. The Amortization Schedule tab lists this month-by-month interest, principal, and remaining balance breakdown, which the single EMI, total interest, and total payment figures do not reveal on their own.

No, this calculator assumes a fixed interest rate for the full tenure, so the EMI it calculates stays the same every month from the first installment to the last. Only the internal split between principal and interest within that fixed EMI changes month to month, as shown in the amortization schedule.

No. This calculator does not include processing fees, insurance, or other lender charges, and it does not model floating-rate resets or mid-tenure rate revisions. It shows the EMI, total interest, and total repayment based purely on the standard reducing-balance formula applied to the loan amount, rate, and tenure you enter. The actual EMI or total cost offered by a bank or NBFC may be higher once such charges are added.

A shorter tenure, a lower interest rate, or making extra prepayments toward principal all reduce the total interest — and therefore total repayment — over the loan's life.

Interest is charged only on the outstanding principal, which shrinks with every EMI payment — so the interest portion of each EMI decreases over time while the principal portion increases, even though the EMI itself stays constant.

No. Some gold loans and older-style loans use a flat rate calculated on the original principal for the full tenure, which produces a different EMI than the reducing-balance method used here. Check your loan agreement for the interest method used.