💳 Loan EMI Calculator

What is EMI?

EMI stands for Equated Monthly Installment — a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both the principal and interest of a loan over a set period, ensuring the loan is fully repaid by the end of the tenure.

EMI Formula

The EMI is calculated using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n – 1), where P is the principal loan amount, r is the monthly interest rate, and n is the total number of monthly installments.

Factors Affecting Your EMI

• Loan Amount: Higher loan amounts result in higher EMIs.
• Interest Rate: A higher interest rate increases the EMI and total interest paid.
• Loan Tenure: Longer tenure reduces EMI but increases total interest paid.

When planning a loan, balance your monthly budget capacity with the total cost of borrowing. A shorter tenure saves money on interest but requires higher monthly payments.