EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1). Here P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Tips to reduce your EMI burden
- A longer tenure lowers the EMI but raises the total interest you pay.
- Part-prepayments early in the loan save the most interest.
- Compare the rate and processing fee from several lenders before you sign.
Frequently asked questions
Is the EMI the same every month?
For a fixed-rate loan, yes. With a floating rate, the lender may change the EMI or the tenure when rates change.
Does this include processing fees?
No. It calculates only principal and interest. Add fees and insurance separately.
Which loans can I calculate?
Any reducing-balance loan: home, car, bike, personal, education or gold loans.