How EMI is calculated
EMI (Equated Monthly Installment) is calculated on the reducing balance method: E = 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 number of monthly installments. Each month, a larger share of your EMI goes toward principal and a smaller share toward interest, as the outstanding balance shrinks.
Use it for
Home loans, personal loans, car loans, and education loans. Enter the loan amount, the annual interest rate your lender quotes, and the tenure in years to see your monthly payment, total interest over the loan, and the full month-by-month breakdown.
Is this accurate?
The formula matches what banks use for fixed-rate reducing-balance loans. Actual EMI may differ slightly due to processing fees, rounding conventions, or floating interest rates — treat this as a close estimate, and confirm the exact figure with your lender.