EMI Calculator

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What is EMI (Equated Monthly Installment)?

EMI, or Equated Monthly Installment, is a fixed monthly payment borrowers make to lenders to repay a loan. It covers both principal and interest, making it a popular choice for managing home loans, car loans, or personal loans over a set period.

How is EMI Calculated?

The EMI calculation uses a precise formula to balance principal and interest:

EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
Where:
P = Principal loan amount
R = Monthly interest rate (annual rate / 12 / 100)
N = Total number of monthly installments

Key Components of EMI

Principal

The original amount you borrow.

Interest

The cost charged by the lender for borrowing.

EMI FAQs

Prepaying reduces the principal, lowering either your EMI or loan duration. Most lenders allow partial prepayments with specific terms.

Yes, many lenders permit changing the EMI date once yearly—check with your provider.

For home loans, claim up to ₹2 lakh on interest (Section 24) and ₹1.5 lakh on principal (Section 80C). Other loans typically offer no tax relief.

Missing an EMI incurs late fees (1-2% of EMI) and hurts your credit score. Repeated misses may lead to asset seizure.