EMI Calculator

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. This calculator applies the same formula used by banks.

Yes — a longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan. Compare the 'total interest' figure while choosing tenure.

No. Banks charge processing fees, insurance and other one-time costs separately. This calculator shows the EMI on the principal alone.

On a floating-rate loan, lenders usually keep the EMI the same and extend the tenure instead. A small rate rise can add years to the loan without changing the amount leaving your account, so check the tenure, not just the EMI.

It lowers the monthly outgo but raises the total interest substantially — often by more than the loan amount itself on a long home loan. Use the shortest tenure whose EMI you can comfortably afford.

Reducing balance charges interest on what you still owe, which is what this calculator uses and what banks use for home, car and personal loans. Flat rate charges on the original amount throughout, making the real cost roughly double the quoted rate — a trick still seen in some dealer financing.