EMI, or Equated Monthly Installment, is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

How is EMI Calculated?

The EMI calculation depends on three main factors: the loan amount (principal), the interest rate, and the loan tenure (the period over which the loan must be repaid). The formula can be complex, which is why an EMI calculator is such a useful tool.

Principal vs. Interest

In the beginning of your loan, a larger portion of your EMI goes towards paying off the interest. As you continue to make payments, more of your money goes towards paying down the principal loan amount. Our calculator shows you a visual breakdown of this split.

Pro Tip: Even a small increase in your EMI can significantly reduce the total interest you pay over the life of the loan and help you become debt-free faster.

Why is it Important?

Understanding your EMI is crucial for financial planning. It helps you budget your monthly expenses and determine how much loan you can comfortably afford without straining your finances.

Want to calculate your EMI?

Our free tool gives you an instant, detailed breakdown of your loan payments.

Go to EMI Calculator