EMI Calculator

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. It's calculated using the formula: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is the principal amount, R is the monthly interest rate, and N is the number of monthly installments.

In reducing balance method, interest is calculated on the outstanding principal amount, which decreases with each payment. In flat rate method, interest is calculated on the original principal amount throughout the loan tenure. Reducing balance method results in lower total interest payments.

Longer loan tenure results in lower EMI amounts but higher total interest paid over the loan period. Shorter tenure means higher EMI but lower total interest. Choose based on your monthly cash flow and total cost preference.

Yes, most loans allow prepayment. Benefits include: reduced total interest, shorter loan tenure, and improved credit score. Some lenders may charge prepayment penalties, so check your loan terms. Prepaying early in the loan tenure saves more interest.

Interest rates depend on: credit score, income stability, loan amount, tenure, employment type, existing debt, and market conditions. Higher credit scores and stable income typically result in lower interest rates.

Fixed rates remain constant throughout the loan tenure, providing payment stability. Floating rates change with market conditions, potentially offering lower rates initially but with payment uncertainty. Choose based on your risk tolerance and market outlook.

Our calculator uses standard EMI formulas and provides accurate estimates. However, actual loan terms may vary based on lender policies, processing fees, insurance, and other charges. Always verify with your lender for exact amounts.

An amortization schedule shows the breakdown of each EMI payment into principal and interest components over the loan tenure. It helps you understand how much principal you're paying down each month and how interest decreases over time.