EMI Calculator

Calculate your monthly loan EMI instantly

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How EMI is Calculated

Equated Monthly Installment (EMI) is the fixed amount you pay to a bank or lender every month. The formula uses your principal loan amount, monthly interest rate, and total number of months.

EMI =
P × r × (1 + r)ⁿ(1 + r)ⁿ - 1

P = Principal amount, r = Monthly interest rate, n = Total number of months

Frequently Asked Questions

What affects my EMI?

Your EMI is determined by three main factors: the total loan amount you borrow, the interest rate charged by the lender, and the tenure (duration) of the loan. A higher interest rate or loan amount increases your EMI, while a longer tenure decreases it. If you're planning your finances around your income, try our Salary to Hourly Calculator.

How can I reduce my EMI?

To reduce your EMI, you can negotiate for a lower interest rate, increase the loan tenure (though this means paying more total interest), make a larger down payment to reduce the principal, or make prepayments whenever you have extra funds. Need to plan your monthly budget better? Try our Budget Planner.

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