How to calculate EMI
Quick answer: To calculate EMI, enter the loan amount, enter the interest rate, choose the tenure and read the EMI and schedule.
- Enter the loan amount. The amount you borrow.
- Enter the interest rate. The yearly rate from your lender.
- Choose the tenure. In years or months.
- Read the EMI and schedule. Change the tenure to compare a lower EMI with the extra interest it costs.
Shorter or longer tenure?
A longer tenure lowers the EMI but you pay much more interest overall. A shorter tenure costs more each month but saves interest. Pick the shortest tenure you can comfortably afford.
Frequently asked questions
What is EMI?
Equated Monthly Instalment: a fixed monthly payment that covers both interest and part of the loan, so the loan is fully repaid by the end of the tenure.
Does it include processing fees?
No. Add any fees separately. Results are estimates for planning, not professional advice.