EMI Calculator

How EMI is calculated

EMI is calculated using the formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
where P = loan principal, R = monthly interest rate, and N = number of monthly installments.

EMI vs Loan Tenure

Choosing a shorter loan tenure increases EMI but reduces total interest paid, while longer tenure lowers EMI but increases overall loan cost. Use this calculator to compare different tenure options before deciding.

Factors affecting EMI

• Principal amount – the higher the loan, the higher the EMI.
• Interest rate – small changes can significantly affect EMI.
• Tenure – longer tenure lowers EMI but increases total interest.

Tips to reduce EMI

• Increase loan tenure to lower monthly payments.
• Negotiate for lower interest rates with the lender.
• Consider part-prepayments to reduce interest burden.

Example

For a loan of ₹5,00,000 at 10% interest for 12 months, your EMI will be approximately ₹44,000 / month.

FAQs

Q: What is EMI?
A: EMI stands for Equated Monthly Installment. It is the fixed amount paid every month to repay a loan, including both principal and interest.

Q: Is this EMI calculator free to use?
A: Yes, Toolscape’s EMI calculator is completely free and provides instant and accurate results.

Q: Does increasing loan tenure reduce EMI?
A: Yes, increasing the loan tenure reduces the EMI amount, but it increases the total interest paid over the loan duration.

Q: Can I prepay my loan to reduce EMI?
A: Yes, partial prepayments reduce the principal and hence your EMI.