An Equated Monthly Installment (EMI) is the fixed payment amount a borrower pays to a lender each month until the loan is fully repaid. Our EMI calculator helps you plan your finances by showing the exact breakup of your monthly payments.
The EMI calculation uses the following mathematical formula:
Even a 0.5% lower interest rate can save you lakhs on long-term loans. Always negotiate with lenders.
Shorter tenures mean higher EMIs but lower total interest. Find the right balance for your budget.
Making partial prepayments can significantly reduce your total interest outgo.
Q: Does EMI include both principal and interest?
A: Yes, each EMI payment includes a portion that goes toward repaying the principal amount and a portion that covers the interest charges.
Q: How does increasing tenure affect EMI?
A: Longer tenures reduce your monthly EMI but increase the total interest paid over the loan's lifetime.
Q: Can I change my EMI amount after taking a loan?
A: Some lenders allow EMI restructuring, but it may involve fees. It's better to plan carefully upfront.