EMI stands for Equated Monthly Installment. It is the fixed amount paid every month by a borrower to repay a loan taken from a bank or financial institution.
Each EMI payment includes both principal amount and interest charged by the lender. The EMI continues until the entire loan is repaid.
EMI = P × r × (1+r)^n / ((1+r)^n – 1)
Suppose you take a loan of ₹5,00,000 at an annual interest rate of 10% for a tenure of 5 years. Using the EMI formula, the monthly EMI can be calculated based on the loan amount, interest rate and loan tenure.
An EMI calculator helps borrowers estimate monthly loan payments before applying for a loan. It allows users to compare different loan amounts, interest rates and loan tenures to find the best loan option.
You can calculate your loan payments instantly using our EMI Calculator.