Loan EMI Calculator
Calculate your monthly loan EMI (Equated Monthly Installment) instantly
What is EMI?
EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off.
How to Use This EMI Calculator?
- Enter the total loan amount (principal) you wish to borrow
- Input the annual interest rate offered by your lender
- Specify the loan tenure in years
- Click "Calculate EMI" to get instant results
EMI Calculation Formula
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
- P = Principal loan amount
- R = Monthly interest rate (Annual Rate / 12 / 100)
- N = Total number of monthly installments (Tenure in Years x 12)
Example Calculation
If you take a home loan of ₹50,00,000 at 8.5% annual interest for 20 years:
- Monthly EMI: ₹43,391
- Total Interest: ₹54,13,840
- Total Amount Payable: ₹1,04,13,840
Frequently Asked Questions
Q: What is a good EMI to income ratio?
A: Ideally, your EMI should not exceed 40-50% of your monthly income. This ensures you have enough funds for other expenses and emergencies.
Q: Can I prepay my loan to reduce EMI?
A: Yes, most banks allow prepayment. You can either reduce your EMI amount or reduce the loan tenure by making prepayments.
Q: Is EMI calculator accurate?
A: Yes, this calculator uses the standard EMI formula and provides accurate results. However, actual EMI may vary slightly based on your lender's specific terms.
Q: What happens if I miss an EMI payment?
A: Missing EMI payments can result in penalty charges, negative impact on your credit score, and in severe cases, loan default and asset seizure.