EMI Calculator

Last Updated : 10 Mar, 2026

An EMI Calculator (Equated Monthly Installment) is a financial tool that computes the fixed monthly repayment amount on a loan, incorporating principal and interest.

Steps to use EMI Calculator

Step 1: Enter the Loan Amount

  • Input the loan amount in the Loan Amount field or adjust the slider to set the desired value.

Step 2: Select Loan Tenure

  • Enter the loan tenure in years or use the slider to choose how long you plan to repay the loan.

Step 3: Set the Interest Rate

  • Provide the annual interest rate (%) using the input box or the slider.

Step 4: Calculate the EMI

  • Click the Calculate button to view your monthly EMI amount instantly. You can also use the Reset button to clear all values and start again.

EMI

  • EMI, or Equated Monthly Installment, is a fixed payment amount made by a borrower to a lender at a specified date each calendar month.
  • It comprises both principal and interest components, ensuring a gradual repayment of a loan, commonly used for mortgages, car loans, or other installment-based financial arrangements.

EMI Calculator Formula

The formula to calculate Equated Monthly Installment (EMI) is:

emi_formula

How to Calculate EMI

To compute Equated Monthly Installment (EMI), employ the formula:

EMI = \dfrac{P * r * (1 + r)^n}{(1 + r)^n - 1}.

Here, P denotes the loan amount, r represents the monthly interest rate (annual rate divided by 12 and converted to a decimal), and n is the loan tenure in months. This formula facilitates the systematic repayment of a loan over time.

Example:

Loan amount ((P)): ₹15,00,000
Annual interest rate ((r)): 8%
Loan tenure ((n)): 15 years (180 months)

-Using the formula, we can calculate the monthly EMI:

EMI = ₹15,00,000 * 0.008 * \dfrac{(1 + 0.008)^180} {((1 + 0.008)^180 - 1)} = ₹13,982. 

You’ll repay ₹13,982 monthly for 180 months, resulting in a total repayment of ₹25,16,760, including ₹10,16,760 as interest.

How to Use EMI Calculator

  • Input Loan Details :
    • Start by entering the loan amount you intend to borrow from the financial institution.
    • Next, input the rate of interest agreed upon by your lender. This represents the annual interest rate at which you’ll be borrowing the money.
  • Determine Loan Tenure :
    • Decide on the loan tenure, which is the total duration in months for which you plan to take the loan.
  • Calculate Monthly Interest Rate :
    • Divide the annual interest rate by 12 to obtain the monthly interest rate (since the interest is calculated monthly).
  • Compute the EMI :
    • Utilize the following formula to calculate the Equated Monthly Installment

 \text{EMI} = \dfrac{{P \cdot r \cdot (1 + r)^n}}{{(1 + r)^n - 1}}
Where ,
(P) represents the principal amount (loan amount).
(r) denotes the monthly interest rate (annual interest rate divided by 12).
(n) stands for the number of monthly installments (loan tenure in months).

  • Validate the Result :
    • Double-check your calculation to ensure consistency and accuracy.
    • Confirm that the EMI aligns with the loan terms provided by the lender.

Applications of EMI Calculator

  • Accurate Loan Planning: Precisely calculate monthly EMIs, aiding borrowers in planning repayment schedules for loans with varying amounts, tenures, and interest rates.
  • Dynamic Visualization: Instantly visualize the impact of changes in loan amount, tenure, and interest rate, empowering users with dynamic and insightful EMI variations.
  • Responsive User Interface: Enjoy a seamless experience with a responsive interface that adapts effortlessly to different devices, providing accessibility and ease of use.
  • Comprehensive Financial Insights: Gain comprehensive financial insights with a detailed breakdown of loan components, including principal, interest, and total repayment, enhancing financial decision-making.
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