Free EMI Calculator

What is EMI?

EMI stands for Equated Monthly Installment. It is the fixed payment amount made by a borrower to repay a loan over a specified period. Each EMI consists of two components: principal repayment and interest payment.

In the initial years of a loan, a larger portion of the EMI goes towards interest. As the loan progresses, the principal component increases while interest decreases.

How EMI is Calculated

Banks and financial institutions calculate EMI using a standard formula that considers loan amount, interest rate and tenure.

Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but significantly reduce overall loan cost.

Types of Loans That Use EMI

• Home loans
• Car loans
• Personal loans
• Education loans
• Business loans

Tips to Reduce EMI and Interest Burden

• Choose the shortest affordable tenure
• Compare interest rates across lenders
• Make prepayments early in the loan tenure
• Maintain a good credit score

Frequently Asked Questions

Is EMI the same every month?

Yes, for fixed-rate loans EMI remains constant throughout the tenure.

Does prepayment reduce EMI?

Prepayment reduces either tenure or EMI depending on lender terms.

Is this EMI calculator free?

Yes. This calculator is completely free and requires no registration.