EMI calculator: know the monthly cost before you borrow.

How EMI is calculated

For a reducing-balance loan, EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months.

Example: a ₹10,00,000 loan at 9% a year for 10 years has an EMI of ₹12,667.58. Over 120 months you pay ₹15,20,109 in total, of which ₹5,20,109 is interest. Shorten the tenure to 5 years and the EMI rises to ₹20,758, but the total interest falls to about ₹2,45,501.

Ways to pay less interest

• Choose the shortest tenure you can comfortably afford. A longer tenure lowers the EMI but raises the total interest a lot.
• Make part-prepayments when you have spare cash; they cut the principal that interest is charged on, and in the early years most of each EMI is interest.
• Compare the rate type. Some lenders quote a “flat” rate on the original amount, which works out costlier than the same number as a reducing-balance rate.
• Look at fees such as processing and prepayment charges, which this estimate does not include.

This is an estimate. Your lender's exact EMI can differ slightly because of rounding, the disbursement date and fees. To see how interest grows over time, try the compound interest calculator.