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A Crucial Financial Tool for Borrower!

An Equated Monthly Instalment (EMI) calculator is a financial tool used to calculate the monthly instalment amount payable towards a loan, typically a mortgage or personal loan. It's a crucial instrument for borrowers as it helps them understand their financial commitment and plan their budget effectively.

EMI Calculator

Add listed data to calculate EMI.


The commonly used formula to calculate EMI is based on the present value of annuity formula, also known as the EMI formula:

EMI = [P x r x (1+r)^n] / [(1+r)^n - 1]


EMI = Equated Monthly Instalment

P = Principal Loan Amount

r = Monthly Interest Rate (Annual Interest Rate divided by 12)

n = Loan Tenure in Months

Interest Calculation: The interest component of each EMI is calculated based on the outstanding loan balance at the beginning of the month and the applicable interest rate. The principal component is then derived by subtracting the interest from the total EMI

Questions? You're covered.

A Loan EMI Calculator is an online tool that helps you calculate the monthly payments (EMIs) you would need to make towards a loan. By inputting the loan amount, the interest rate, and the loan tenure (in years or months), the calculator computes the EMI based on a standard mathematical formula. This tool simplifies the process of figuring out your monthly financial obligation towards any loan, helping you to plan your finances accordingly.

Yes, the Loan EMI Calculator is versatile and can be used for various types of loans, including home loans, personal loans, car loans, education loans, etc. Since the calculation is primarily based on the loan amount, interest rate, and tenure, it can easily adapt to any loan type. However, it's important to note that some loans might have additional charges or fees not accounted for by a basic EMI calculator.

To lower your EMI payments, you can use the Loan EMI Calculator to experiment with different variables. Extending the loan tenure will typically result in lower monthly payments, albeit with a higher total interest cost over the life of the loan. Alternatively, negotiating a lower interest rate with your lender or making a larger down payment to reduce the loan amount can also decrease your monthly EMIs. Use the calculator to explore these scenarios and determine what works best for your financial situation.

Basic versions of a Loan EMI Calculator may not factor in prepayments directly into the initial calculation. However, some advanced calculators offer the option to include prepayment parameters, showing how making additional payments towards the principal can affect your EMI and total interest payable. Prepaying a part of your loan can significantly reduce the interest cost and potentially shorten the loan tenure. If this feature is important to you, look for a calculator that includes prepayment options to plan your loan repayment strategy more effectively.
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