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EMI Calculator
Loan Amount (₹)
Rate of Interest (% p.a.)
Loan Tenure
You pay a monthly EMI of  ₹
Total Repayment Amount will be
Loan Amount 
Interest to be Paid

What Is an EMI Calculator?

An EMI (Equated Monthly Instalment) tenure calculator is a financial tool that helps borrowers calculate the monthly instalment they need to pay towards a loan. The online EMI calculator helps borrowers make informed decisions about loan affordability and choose loans that align with their financial capabilities.

The loan EMI calculator online is a valuable tool for individuals aiming to manage their financial commitments effectively. It is especially beneficial for evaluating loans with fixed interest rates and consistent monthly payments, like home loans, car loans, personal loans etc. By entering the required details in the calculator, borrowers can instantly determine the exact EMI they will need to pay each month. This information helps in budgeting and financial planning , allowing borrowers to allocate their funds efficiently, and ensuring that they meet their loan obligations without straining their finances. Moreover, it empowers borrowers to explore different loan scenarios and choose the most suitable option that aligns with their financial capacity.

How does an EMI Calculator work?

The EMI prepayment calculator calculates the monthly EMI payments based on loan amount, interest rate, and tenure and simplifies complex math for borrowers. The EMI calculator also helps borrowers make informed financial decisions by bifurcating EMIs into principal and interest through repayment schedules.

Here is how an EMI calculator works-

  • Collecting input from the borrowers-

    Loan Amount: The total amount borrowed or principal.

    Interest Rate: The annual interest rate on loan.

    Loan Tenure: The number of months or years over which the loan will be repaid.

  • Interest Rate Conversion-

    It turns the yearly interest rate into a monthly one by dividing it by 12 (for monthly payments).

  • Calculating Monthly Interest-

    It calculates the monthly interest amount by multiplying the outstanding loan balance (initially the loan amount) by the monthly interest rate. This represents the interest portion of the EMI.

  • Total Monthly Payment (EMI)-

    An EMI is calculated by summing the monthly interest and principal repayments.

    The formula of EMI calculator is

    EMI = P * r * (1 + r)^n / ((1 + r)^n - 1)


    P = Principal Loan Amount (the initial loan amount)

    r = Monthly Interest Rate (monthly interest rate divided by 100)

    n = Total Number of Monthly Instalments (loan tenure in months)

  • Display-

    The EMI calculator then displays the calculated EMI amount, usually rounded to the nearest whole number.

What is the formula to determine loan EMI amount and give an example of it?

The formula to calculate Equated monthly instalment also called EMI is:

EMI = P * r * (1 + r)^n / ((1 + r)^n - 1)


P = Principal Loan Amount (the initial loan amount)

r = Monthly Interest Rate (monthly interest rate divided by 100)

n = Total Number of Monthly Instalments (loan tenure in months)

Here is an example to give you a more clear picture-

Suppose you avail a loan of Rs 1,00,000. This becomes your principal amount i.e. P = ₹1,00,000. Now, you are asked to pay 12% as interest on your loan. This becomes your annual rate of Interest i.e r = 12% (or 0.12 as a decimal)

To calculate the monthly rate of Interest, we divide the rate of interest by the number of months in a year which is 12

So, our monthly rate of interest will be - 0.12/12 = 0.01

Then comes the tenure. This means the period for which you have availed the loan. In our case, it is - 24 months

Thus, our inputs become -

P - 1,00,000

r - 0.12

n - 24

Substituting the value in the formula, we get

EMI = 1,00,000 x 0.12 x (1+0.12) 24/{(1+0.12)24 - 1}

The EMI we get is ₹4,707.10

What are the advantages of using an EMI calculator?

The advantages of an EMI scheduled calculator include accurate EMI estimate, financial planning assistance, simplified loan comparison, preventing overborrowing, etc. Online EMI calculator is a powerful tool for borrowers to make informed, financially responsible decisions when availing loans.

Following are some of the advantages of loan EMI calculator online-

  • Accurate Estimates- Online EMI calculators provide precise estimates of monthly instalment payments. This accuracy is essential for borrowers as it ensures that they are fully aware of the financial commitment they are making. It eliminates the uncertainty associated with loan repayments and allows borrowers to plan their budgets more effectively.
  • Financial Planning- EMI calculators are essential tools for financial planning. Borrowers can use them to protect their future financial obligations. By knowing the exact EMI amount, individuals can assess whether they can comfortably handle the monthly payments without compromising their other financial goals or daily expenses.
  • Simplified Loan Comparison-EMI calculators simplify the process of comparing different loan options. Borrowers can input various loan amounts, interest rates, and tenures to see how they affect the EMI. This enables them to make side-by-side comparisons and choose the loan that best suits their financial situation and goals.
  • Preventing Overborrowing- EMI calculators empower borrowers to understand the full cost of a loan. They can see not only the monthly EMI but also the total interest paid over the loan tenure. This information helps prevent overborrowing, as borrowers can make informed decisions about how much they need to borrow and avoid taking on excessive debt that could lead to financial strain.

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  • What is EMI?
    A EMI, is a method of investing money. It allows individuals to invest a fixed amount at regular intervals rather than making one large investment(lump sum investment). It allows individuals to invest in a disciplined and systematic manner. This is important because it allows for regular saving even if the amount is small, it can add up over time.
  • What is a EMI Calculator?
    A EMI Calculator is a tool created to help investors like you in determining how much they need to invest on a regular basis in order to achieve a specific financial goal. The calculator takes into account the amount of the investment, the frequency of the investment, and the expected returns on your investments.
  • How does EMI Calculator Work?
    P = Initial value or the investment made R = Rate of interest that is compounded annually T = Duration in years for calculating future value The above can be used for a basic lump sum future value calculator. This is normally, a very simple assumption. In reality, there are intermittent cash flows called annuities so you have to calculate the future value of such annuities. Normally, the future value calculator also imputes such annuities into the formula to give you the future value.

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