EMI stands for Equated Monthly Instalment. It is the fixed payment you make every month to repay your loan. Each EMI includes both the interest and a portion of the principal loan amount.
The EMI is calculated using the formula: EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1], where P is the loan amount (principal), R is the monthly interest rate (annual interest rate divided by 12 × 100), and N is the loan tenure in months.
Yes! You can reduce your EMI by making part prepayments, negotiating a lower interest rate with your bank, or extending the loan tenure. However, longer tenure increases total interest cost.
Missing an EMI can lead to late payment charges and negatively impact your credit score. If you miss multiple EMIs, lenders may classify your loan as default and take recovery actions.
An EMI calculator helps you estimate your monthly outgo, understand interest costs, compare different loans, and plan your budget better — all before applying for a loan.
Yes! You can use this calculator for home loans, personal loans, car loans, education loans, and even credit card EMIs. Simply enter your amount, rate, and tenure.
For fixed-rate loans, EMI remains constant throughout the tenure. For floating-rate loans, EMI can change depending on the changes in interest rates by the lender or RBI.
Yes. Making a prepayment reduces your outstanding principal, which can lower your EMI or shorten your loan tenure, depending on your choice and lender policy.