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Enter Loan Details
₹5,00,000
8.5%
5 Years
Loan Summary
🏦
Enter loan details and click Calculate
Monthly EMI
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Principal Amount
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Total Interest
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Total Amount Payable
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Principal
Interest
📅 Amortization Schedule (First 12 Months)
| Month | EMI (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|
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What is EMI and How is it Calculated?
EMI (Equated Monthly Installment) is a fixed payment made by a borrower to a lender each month on a fixed date. Each EMI includes both principal repayment and interest charges.
EMI Formula
EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ – 1]
Where: P = Principal loan amount | r = Monthly interest rate (Annual rate ÷ 12 ÷ 100) | n = Total number of months
Example Calculation
For a loan of ₹5,00,000 at 8.5% per annum for 5 years: Monthly EMI ≈ ₹10,224. Total payable ≈ ₹6,13,440. Total interest ≈ ₹1,13,440.
Tips to Reduce Your EMI
Make a larger down payment to reduce the principal. Opt for a longer tenure to reduce monthly EMI (though total interest increases). Always compare interest rates from multiple lenders before applying for a loan.