EMI Calculator
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How it is calculated
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments (tenure in months). The total payment is EMI × n, and the total interest is the total payment minus the principal.
Frequently asked questions
How is loan EMI calculated?
EMI uses the reducing-balance formula EMI = P×r×(1+r)^n ÷ ((1+r)^n−1), where r is the monthly rate and n the number of months. Early EMIs are mostly interest; later ones are mostly principal.
Does a longer tenure reduce my EMI?
Yes — a longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan. A shorter tenure means a higher EMI but less total interest.
Is this EMI calculator accurate for home loans?
It computes the standard reducing-balance EMI. Actual bank EMIs may differ slightly due to processing fees, insurance, or floating-rate resets. Use it as a close estimate.
Related reading
India Law Simplified is an AI-assisted tool, not a substitute for a licensed CA or advocate. Tax rules and limits change with each Finance Act — verify before relying on any figure.