Loan amount ($)
Annual interest rate (%)
Tenure
Result
About EMI
What is EMI?
Equated Monthly Instalment — the fixed monthly payment for a loan covering both principal repayment and interest.
Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1) where P = principal, r = monthly rate, n = number of months.
Total interest
Long-tenure loans pay significantly more total interest. Even 1% rate reduction saves substantially over 20 years.
Frequently Asked Questions
What is EMI?
Equated Monthly Instalment — the fixed monthly payment covering both interest and principal repayment, structured so the loan is fully repaid by end of tenure.
What is the EMI formula?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P = principal, r = monthly rate (annual rate / 12 / 100), n = total months.
Shorter vs longer tenure?
Shorter tenure = higher EMI but less total interest. Longer tenure = lower EMI but significantly more interest overall. Choose the shortest tenure your budget can support.