How is EMI calculated?

EMI is calculated using the formula: E = P x R x (1+R)^N / [(1+R)^N-1], where P is Principal, R is monthly interest rate, and N is tenure in months.

Yes, you can reduce your EMI by making a prepayment to reduce the principal amount or by requesting the bank to increase your loan tenure.

Loan EMI Calculator (2025) - Home, Car & Personal Loan

Loan Amount

₹ 500000

₹

Interest Rate (% p.a)

8.5%

Loan Tenure

Years

Total Amount ₹0

Monthly EMI

₹ 10,123

Principal ₹ 5,00,000

Interest ₹ 1,07,380

Total Payable ₹ 6,07,380

Amortization Schedule

Monthly breakdown of your repayment

Month	Principal	Interest	Balance

What is EMI?

EMI stands for Equated Monthly Installment. It is a fixed amount payable by a borrower to a lender at a specified date each month. EMIs consist of principal repayment and interest on the outstanding amount.

How to Use This Calculator?

Loan Amount: Enter the principal amount you wish to borrow.
Interest Rate: Enter the annual interest rate offered by the bank.
Tenure: Select the loan repayment period in years.
Result: See your monthly EMI, total interest payable, and total payment.

Formula Used

E = P x r x (1+r)^n / ((1+r)^n - 1)

Where E is EMI, P is Principal, r is monthly interest rate, and n is tenure in months.

Factors Affecting EMI

Loan Amount: Higher loan means higher EMI.
Tenure: Longer tenure reduces monthly EMI but increases total interest paid.
Interest Rate: Higher rates increase the EMI burden.

Frequently Asked Questions

Can I change my EMI amount?

Usually, EMI is fixed. However, you can make prepayments to reduce the tenure or request the bank to increase tenure to reduce EMI (subject to approval).

Is EMI affected by repo rate changes?

Yes, if you have a floating rate loan (like most home loans), changes in RBI repo rates will affect your interest rate and consequently your EMI.