EMI Calculator

10 Yrs 30 Yrs
Loan EMI
Total Interest Payable
Total Payment
(Principal + Interest)

What is EMI?

Equated Monthly Instalment or EMI is the fixed amount a borrower pays every month towards the repayment of their loan. It has two components - the principal and the interest- and is usually paid on a fixed date every month.

How to use the EMI calculator?

You can use an EMI calculator to arrive at your EMI amount for your personal loan, home loan or even car loan. All you have to do is insert your loan amount, tenure and the rate of interest on the loan. It then gives you the EMI amount along with the total interest payable.

How are EMIs calculated on loans with a floating interest rate?

A floating interest rate, in contrast to a fixed rate, varies based on the prevailing market rates. It is usually synced with the base rate determined by the RBI. For some banks, changes in interest rates don’t reflect in your EMI, rather the tenure of the loan may increase or decrease accordingly.
FAQs 1) What happens in the case where the interest rate reduces or increases during the tenure of your loan? For a floating plan, the EMI varies with changes in market rates. You pay more when the market rates soar and end up saving when they take a dip. Many banks make adjustments in a way that keeps the EMI constant with the tenure of the loan fluctuating. 2) What happens when you partially prepay the loan? If you want to become debt-free as soon as possible, you have the option of prepaying your loan amount partially or fully. Although repaying your loan early reduces your future EMI payments, banks may stipulate a time period before which the prepayment cannot be initiated and may even charge a prepayment penalty. 3) What happens if you skip your EMI? If you default on your EMI, the bank charges a late payment fee. Also, your EMIs may tend to be more in the future. Moreover, your credit score might take a hit; so, it is better to plan your finances right.