EMI Calculator

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the principal loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the number of monthly instalments. This is the standard reducing-balance formula used by nearly all banks.

Yes, for a fixed-rate loan the EMI amount stays constant every month. What changes each month is the split between principal and interest — early payments are mostly interest, while later payments are mostly principal, since interest is calculated on the reducing outstanding balance.

A longer tenure lowers your monthly EMI but increases the total interest paid over the life of the loan, since interest accrues for more months. A shorter tenure raises the EMI but reduces total interest significantly. Use the tenure slider here to compare trade-offs before choosing.

Depends on what you choose with your lender. Most banks let you keep the EMI the same and shorten the tenure (saves more interest overall), or reduce the EMI while keeping the tenure the same. Prepaying early in the loan saves more interest than prepaying later, since more of the outstanding balance is still unpaid.