EMI Calculator
By Talcart · Last updated July 10, 2026
EMI Calculator Guide
Understanding EMI
What is EMI?
- EMI stands for Equated Monthly Installment
- It is the monthly payment made towards a loan
- EMI includes both interest and principal components
How is EMI calculated?
- EMI = (P × R × (1 + R)^N) / ((1 + R)^N - 1)
- Where: P = Principal amount, R = Monthly interest rate, N = Number of installments
Factors affecting EMI
- Loan amount
- Interest rate
- Loan tenure
- Type of interest (fixed or floating)
EMI Calculator
This EMI calculator computes the fixed monthly installment on any loan: borrow ₹1,000,000 at 9% for 15 years and the EMI is ₹10,143 per month. Alongside the installment it shows total interest over the full tenure and how each payment splits between interest and principal, so you can compare lenders and tenures on equal terms.
Key facts
- On a ₹1,000,000 loan at 9% for 20 years, total interest is about ₹1,159,000 — the interest alone exceeds the amount borrowed.
- Each 1-point rate rise adds roughly ₹650 a month on a ₹1,000,000, 20-year loan: the EMI climbs from ₹8,364 (8%) to ₹8,997 (9%) to ₹9,650 (10%).
- Halving the tenure from 20 to 10 years at 9% raises the EMI 41% (₹8,997 to ₹12,668) but cuts total interest by roughly 55%.
What is the EMI Calculator?
An Equated Monthly Installment (EMI) is a fixed payment a borrower makes on the same date each month that fully repays a loan — principal plus interest — by the end of its tenure. The amount is "equated" because it never changes on a fixed-rate loan, but its internal composition does: interest is charged on the outstanding balance, so early EMIs are interest-heavy and the principal share grows month by month. EMIs are the standard repayment structure for home, auto, personal, and education loans across India and most amortizing loans worldwide.
How does the EMI Calculator work?
The calculator applies the amortization formula EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the principal, r the monthly rate (annual rate / 12 / 100), and n the tenure in months. For ₹1,000,000 at 9% over 180 months, r = 0.0075 and n = 180, giving ₹10,143. Total interest is simply EMI x n - P — here ₹10,143 x 180 - ₹1,000,000 = about ₹825,700 — which is why small rate or tenure changes move lifetime cost dramatically.
What is the EMI Calculator formula?
- P – principal
- r – monthly interest rate
- n – number of months
Monthly EMI on a ₹1,000,000 loan by rate and tenure
| Annual interest rate | 10-year EMI | 15-year EMI | 20-year EMI |
|---|---|---|---|
| 7% | ₹11,611 | ₹8,988 | ₹7,753 |
| 8% | ₹12,133 | ₹9,557 | ₹8,364 |
| 9% | ₹12,668 | ₹10,143 | ₹8,997 |
| 10% | ₹13,215 | ₹10,746 | ₹9,650 |
| 11% | ₹13,775 | ₹11,366 | ₹10,322 |
How do you use the EMI Calculator?
- Enter loan amount, annual rate, and term in months or years.
- Read EMI, total interest, and total payment.
Worked example
| Scenario | $200,000 at 7% for 30 years |
| Calculation | 200,000 × 0.005833 × (1.005833^360) / ((1.005833^360) − 1) |
| Result | EMI ≈ $1,330.60; total interest ≈ $279,018. |
Common use cases
Tips & best practices
Even one extra EMI a year can shave several years off a 30-year loan.
Frequently asked questions
EMI uses the formula P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r the monthly interest rate, and n the number of monthly payments. A ₹1,000,000 loan at 8% annual (r = 0.006667) for 20 years (n = 240) works out to ₹8,364 per month.
Yes — the monthly payment falls, but total interest rises sharply. Stretching a ₹1,000,000 loan at 9% from 10 to 20 years cuts the EMI from ₹12,668 to ₹8,997, yet lifetime interest jumps from about ₹520,000 to about ₹1,159,000 — more than double the cost for a 29% lower installment.
Because interest each month is charged on the entire outstanding balance, which is largest at the start. On a ₹1,000,000 loan at 9%, the first month's interest alone is ₹7,500 (1,000,000 x 0.0075), so a 20-year EMI of ₹8,997 retires only ₹1,497 of principal in month one; the split reverses steadily as the balance shrinks.
Lenders typically let you choose: keep the EMI and shorten the tenure, or keep the tenure and lower the EMI. Shortening the tenure saves far more interest, because every prepaid rupee stops accruing interest for all remaining months. Even one extra EMI per year can trim several years off a 20-year loan.
On a fixed-rate loan, nothing — the EMI is locked for the full tenure. On a floating-rate loan linked to a benchmark such as the RBI repo rate, lenders usually extend or shorten the tenure first and adjust the EMI only if the tenure change is insufficient. A 1-point rise from 9% to 10% lifts a fresh 20-year EMI on ₹1,000,000 from ₹8,997 to ₹9,650.
At 9% for 20 years, roughly ₹1,667,000 — since ₹1,000,000 costs ₹8,997 a month on those terms, a ₹15,000 budget supports about 15,000 / 8,997 = 1.667 times that principal. Lenders also cap EMIs near 40-50% of take-home income, so eligibility may be lower than the pure math.