ToolkitBeeHow to use
- Enter the loan amount you want to borrow.
- Enter the yearly interest rate offered by the bank.
- Enter the loan tenure in years.
- Your EMI, total interest and total payment update instantly.
Formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
where P = loan amount, r = monthly interest rate (yearly rate ÷ 12 ÷ 100) and n = number of months.
Frequently asked questions
What is EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay the lender every month until the loan is fully repaid. Each EMI covers part of the interest and part of the principal.
How can I reduce my EMI?
You can choose a longer tenure, negotiate a lower interest rate, or make a bigger down payment. A longer tenure lowers the EMI but increases the total interest you pay.
Is the result exact?
The calculator uses the standard reducing-balance formula used by banks. Your actual EMI can differ slightly because of processing fees, insurance or rounding by the lender.