EMI Calculator

What is EMI?

EMI (Equated Monthly Installment) is the amount payable every month to the bank or financial institution until your loan is fully repaid. It consists of both the interest on the loan and the part of the principal amount to be repaid.

How does EMI work?

When you take out a loan, you repay it over time with interest. The EMI is calculated using the principal loan amount, the interest rate, and the tenure (duration) of the loan. Our calculator helps you quickly estimate your EMI based on these parameters.

EMI Calculation Formula

The EMI is calculated using the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
P = Loan amount (principal)
R = Monthly interest rate (annual interest rate divided by 12)
N = Loan tenure in months

Tips for Choosing the Right Loan

• Evaluate the Interest Rate: Choose a loan with a competitive interest rate to lower your EMI.
• Adjust the Loan Tenure: A longer tenure reduces your EMI, but results in paying more interest over time.
• Check Your Eligibility: Ensure you meet the bank's eligibility criteria for the loan.