Calculate your Equated Monthly Installment for different types of loans
Monthly EMI
₹21,549
Total Interest
₹26,71,760
Total Amount
₹51,71,760
Monthly EMI
₹16,746
Total Interest
₹2,04,760
Total Amount
₹10,04,760
Monthly EMI
₹16,653
Total Interest
₹99,508
Total Amount
₹5,99,508
Equated Monthly Installment (EMI) is the fixed amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on the loan as well as part of the principal amount to be repaid. The EMI is calculated by dividing the sum of principal amount and interest by the tenure (number of months) in which the loan has to be repaid.
The formula to calculate EMI is:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1)
Where:
The interest component is calculated on the outstanding loan amount. In the initial EMIs, the interest component is higher and gradually decreases with each payment as the principal is paid off.
Yes, making prepayments or part-payments reduces your outstanding principal, thereby reducing the interest burden and overall loan tenure. However, some loans may have prepayment penalties, so check with your lender first.
Missing an EMI payment can result in late payment charges, affect your credit score, and in severe cases, lead to loan default and recovery proceedings by the lender.
Increasing the loan tenure reduces your monthly EMI amount but increases the total interest paid over the loan period. Conversely, decreasing the tenure increases your EMI but reduces the total interest outgo.
For fixed-rate loans, the EMI remains constant throughout the tenure. For floating-rate loans, the EMI may change based on interest rate fluctuations unless the lender adjusts the tenure instead of the EMI amount.