Loan EMI Calculator
Calculate monthly EMI for personal loans, business loans, and more
💡 Tip: Click value to edit directly. Supports shorthand (5L, 2.5Cr) or exact numbers (725000)
Common Loan Scenarios
Loan Amount
Total Interest
Total Amount Payable
Loan Breakdown
Loan Summary
Year-wise Growth Projection
Understanding Loan EMI
EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs consist of both principal and interest components, calculated to pay off the loan completely over the tenure.
Key Features of EMI:
- Fixed Amount: Same EMI throughout the loan tenure
- Principal + Interest: Each EMI contains both components
- Reducing Balance: Interest calculated on remaining principal
- Early Years: Higher interest component initially
- Later Years: Higher principal component towards the end
- Total Cost: EMI × Tenure = Total amount payable
EMI Calculation Formula:
The EMI is calculated using the formula:
Where: P = Loan Amount, r = Monthly Interest Rate, n = Number of Months
Frequently Asked Questions
What factors affect EMI calculation?
EMI depends on three main factors: loan amount (principal), interest rate, and tenure. Higher loan amount and interest rate increase EMI, while longer tenure reduces it.
Can I prepay my loan to reduce EMI burden?
Yes, prepaying reduces the principal amount, which can either reduce your EMI or tenure. Some lenders charge prepayment penalties, so check terms before prepaying.
What is the ideal EMI-to-income ratio?
Financial experts recommend keeping your total EMIs (all loans) within 40-50% of your monthly income to maintain healthy finances.
How does floating interest rate affect EMI?
With floating rates, your EMI may change when interest rates change. Banks may adjust EMI amount or tenure based on rate changes and their policies.
What happens if I miss an EMI payment?
Missing EMI payments can result in penalties, negative impact on credit score, and in extreme cases, asset seizure. It's crucial to maintain timely payments.