EMI Calculator

An EMI (Equated Monthly Instalment) is the fixed amount you repay each month on a loan, structured so that a larger share goes toward interest early in the tenure and a larger share goes toward principal later - even though the instalment itself stays constant. This calculator applies the standard amortisation formula to your loan amount, interest rate and tenure to compute that fixed monthly figure.

The three inputs interact in a way that's easy to underestimate: stretching the tenure lowers your EMI and eases monthly cash flow, but it substantially increases the total interest paid over the life of the loan, since interest keeps accruing on the outstanding balance for longer. It's worth calculating the total interest outgo (not just the EMI) at two or three different tenures before deciding.

As a rule of thumb used by many lenders, keeping your total EMI obligations under roughly 40% of monthly take-home income leaves reasonable room for other goals and emergencies. It's also worth modelling how a partial prepayment a few years in - even a modest one - reduces the outstanding tenure or EMI, since prepayments made earlier in the loan save more interest than the same amount paid later.