How it works
- EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments.
- Each payment first covers that month's interest on the remaining balance; the rest reduces the principal, which is why early payments are interest-heavy.
Frequently asked questions
What is EMI?
EMI (Equated Monthly Installment) is the fixed amount you pay every month until a loan is fully repaid. It includes both principal and interest.
Does a longer term lower my total cost?
No. A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan.
Does this include fees or insurance?
No. The result covers principal and interest only. Add processing fees or insurance separately if your lender charges them.
Results are estimates for general information and are not financial, medical or professional advice.