Emi Calculator

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What is an EMI Calculator?

The loan EMI calculator is a financial tool that helps calculate the monthly instalment of the payment the borrower will make every month to repay the loan. The mathematical EMI calculator formula is E = P x r x (1 + r )n / ( ( 1 + r )n - 1 ). It requires three parameters to generate output – P (the principal loan amount), r (the rate of interest,) and n (the loan period in months). Undoubtedly, the EMI calculator formula seems complex and complicated; hence the use of an EMI calculator online not just makes the task easy but also generates accurate and error-free results.

Know in detail: Simple interest Formula Calculation

What is EMI?

A loan is a financial agreement. It takes place between the lender and the borrower. While the borrower gains from the lump sum flow of cash, the lender levies interest and certain charges on the loan proceeds which add on to the lender’s income. The borrower can advantageously use the loan amount for the desired purpose and subsequently repay the proceeds in easy monthly instalments. At this point, the monthly EMI calculator comes into play. It enables the borrower to calculate the amount of EMI (equated monthly instalment) to repay the loan. 

While the EMI is calculated using three variables - principal amount, rate of interest, and loan tenure, the EMI value constitutes two portions – the principal part and the interest component. 

Therefore, the monthly EMI calculator also helps to separate the principal amount and the interest paid thereon. The EMI calculator thus helps calculate the total cost of the loan. 

While the EMI of a fixed rate of interest loan will remain the same throughout the loan tenure, the ratio of principal to interest in the EMI value keeps changing throughout repayment. In the first few years when you are repaying the loan, remember, that the interest component will be higher than the principal. The EMI amount is to be paid to the lender every month on a pre-decided date through the mode of repayment opted for at the time of loan application.

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How to Calculate EMI using EMI Calculator?

The EMI calculator formula uses three variables – principal amount, rate of interest, and loan tenure, to calculate the amount of EMI. 

When the value of each parameter is entered in the EMI calculator formula E = P x r x ( 1 + r )n / ( ( 1 + r )n - 1 ), the resultant EMI value is generated. The task is done best using an EMI calculator online. 

How to calculate EMI?

  • Search for 'EMI calculator' in the Google Search bar.
  • Open the EMI calculator online
  • Enter the value for P i.e. the value of the loan you wish to avail
  • Enter the value of r i.e. the rate of interest offered by the lender
  • Enter the value for n i.e. the duration of the loan in months
  • Submit the values

The EMI value corresponding to the entered values will be generated by the EMI calculator, instantly.

Additional Info: Also check SBI Home Loan EMI Calculator

How to Use Mymoneymantra's EMI Calculator?

MyMoneyMantra is one of the leading third-party aggregators. The website collates the information about varied financial products offered by both banks and non-banking financial companies. In addition to an extensive database, MyMoneyMantra also allows easy comparison of products which empowers the borrower to make an informed decision. Availability of financial tools like the EMI calculator, Eligibility calculator, Loan Prepayment calculator, etc. makes the loan search comfortable and cost-effective.

If you are searching for ‘how to calculate EMI’, MyMoneyMantra's EMI Calculator offers comprehensive support:

  • Visit MyMoneyMantra’s official website www.mymoneymantra.com
  • Go to the ‘Financial Tools’ tab in the header bar
  • Select the ‘EMI Calculator’ option from the drop-down
  • Enter the values for ‘Loan Amount, Rate of Interest and Loan Tenure’

The Total EMI Value, Total Interest, and Total Payments will appear on the screen. The break-up of the loan amount will also be depicted in a pie-chart format. Loans that will have a smaller portion of the interest rate segment in the pie-chart will be cheaper.

Additional Info: Also check Pan Number for Banks

How to Reduce your EMI?

As mentioned above, the EMI value is the amount that will be repaid every month over the entire loan tenure. Therefore, the value of the EMI must be carefully fixed at the time of applying for a loan. 

One can reduce the EMI value in several ways. These include:

  • Lower the Principal Amount – The loan amount directly impacts the EMI value. If the loan amount applied for is more, the corresponding EMI value will be high. Therefore, if you want to reduce your EMI, lower the amount of loan you apply for.
  • Opt for Lower Rate of Interest – Like loan amount, the rate of interest also affects the EMI value directly. The rate of interest is the cost of the loan. Therefore, the borrower must always opt for a lender that offers a loan at the lowest rate of interest. This will not just reduce the monthly EMI value, but also reduce the overall cost of the loan.
  • Increase the Loan Term – As the duration of the loan increases, the EMI value reduces. Thus, loan tenure and EMI are inversely related.
  • Balance Transfer – The EMI generated using the EMI calculator formula is to be paid every month. The EMI can be further reduced during the balance transfer of the loan from one lender to another. In the switching over process, the new lender will re-calculate the EMI with the help of the EMI calculator using fresh parameters of the loan amount, rate of interest, and loan term.
  • Prepayment of Loan – The borrower can effectively use windfall gains to repay loans. As the amount prepaid is adjusted against the principal amount, prepayment of the loan will help reduce the EMI.
  • Moving from Fixed to Floating Rate of Interest – The EMI value of the loans availed on a fixed rate of interest will remain the same for the loan term. The same can be reduced if the loan is moved from a fixed to a floating rate of interest. As the floating rate of interest is linked to MCLR (marginal cost of lending rate)-based interest rates, one can take advantage of the fall in MCLR rates.

Additional Info: You can also Check Banglarbhumi West Bengal Land Record

Factors Affecting EMI

EMI is calculated using a mathematical formula. The principal amount, rate of interest charged annually, and the loan tenure in months, are the required inputs for the EMI calculator. In other words, the value of EMI is dependent upon these three factors. 

But interestingly every factor impacts the EMI value differently. While the principal loan amount and the rate of interest on which the loan is availed directly impact the EMI value, the loan tenure indirectly affects the EMI value. 

Let’s understand this in detail:

Principal Amount: The amount of loan that a borrower wishes to apply for is the principal amount. As the principal amount goes up, the corresponding value of the EMI also increases and vice versa. So in case, the borrower wants to reduce the EMI value, consider applying for a smaller principal amount.

Loan Tenure: The number of years over which the loan will be repaid is the loan tenure. The EMI calculator requires the loan duration to be entered in months. Thus, if you wish to take a loan for 5 years, the number of months will be 60 (5 X 12). As the loan duration increases, the EMI value reduces. But it is pertinent to mention here that the longer the loan term, the more expensive the loan will be. Thus, one should opt for a loan term that helps you reach the ideal EMI value as per your repayment capacity. It must be neither too high nor too low.

Rate of interest: Rate of interest is the rate percentage at which the lending company offers a loan. It is the cost of the loan. As the rate of interest increases, the overall cost of the loan and the monthly EMI value will increase. Therefore one should carefully compare the rate of interest offered by different lenders. If the borrower has a good credit score, stable income, and loyal banking history, the rate of interest can be negotiated further.

Additional Info: Also check Home Loan EMI Calculator

How is Home Loan Interest Calculated?

EMI for a loan can be calculated using an EMI calculator online. The EMI calculator will require values of three parameters for determining the loan EMI. These are - loan amount, rate of interest, and loan term.

When one considers a home loan, a high loan amount and long loan tenure become obvious. Therefore, to keep the value of the EMI low, the home loan rate of interest must be amongst the lowest ones. 

The borrower has the option to choose between the fixed and floating rate of interest. Unlike the fixed rate of interest, the floating rate is linked to the MCLR (marginal cost of lending rate) rates. While this helps the borrower takes advantage of the downtrend fluctuations in the economic scenario, he may have to bear the additional cost arising due to the rise in the MCLR rate.

The Home Loan Interest Rates offered to the borrower is calculated as follows:

  • MCLR Rate – It is the minimum rate of interest fixed by RBI below which the lender cannot lend to the borrower. Thus, the home loan interest rate is directly affected by the lending rate.
  • Credit Score – Borrowers who have an excellent credit rating, meet the lending company’s eligibility criteria, and have a loyal banking relationship with the lender will be offered a home loan at the minimum interest rate offered by the company.
  • The Reputation of the Lender – Just like the reputation of the borrower, the reputation of the lender is equally important in calculating the home loan interest. Lending companies, especially banks, which have a huge supply of money and a great market standing attract more customers through their affordable schemes. Through their widespread operations, such lending institutions enjoy economies of scale and thus pass on the benefits in the way of the lowest home loan interest rate.

What is the Home Loan Amortization Schedule?

Home Loan Amortization Schedule is a tabular representation that enlists the repayments of a loan over the loan term. It shows the break-up of the loan EMI and separates the portion of the principal amount from the interest component.

The Home Loan amortization schedule includes the following information:

Instalment Number – Every EMI instalment has a unique serial number. The payment details corresponding to the instalment number are mentioned alongside.

Due Date – It is the date on which the EMI instalment falls due.

Opening Principal – it is the total principal amount outstanding at the beginning of the month. The opening principal balance is used to calculate the interest thereon.

Instalment Amount – It is the EMI amount payable on the home loan. It is calculated using the EMI calculator. 

Principal Component – It is the break-up of the EMI. It shows the component that goes into repaying the principal loan. 

Interest Component – It is the break-up of the EMI. It shows the component that goes into repaying the interest on the home loan.

Closing Principal – It is the balance principal amount that remains unpaid after the payment of that month’s EMI. The closing principal amount of one month is the opening principal amount for the next month.

Additional Info: Also check HDFC Home Loan EMI Calculator

Amortization Table

YearOpening BalanceAmount paid by customer (EMI*12)Interest paid during the yearPrincipal paid during the yearClosing Balance


✅ Will the EMI calculated by the EMI calculator tally with the actual bank EMI?


EMI calculator generates results based on inputs. The EMI calculated by the EMI calculator will tally with the actual bank EMI if one provides accurate inputs i.e. the actual rate of interest charged by the bank, the actual principal loan the bank will approve, and the actual loan term for which the loan will be availed. In case there is any variation from the actual figures, the EMI value calculated by the EMI calculator will not tally with the actual bank EMI.

✅ Is the EMI calculator useful for all loan types?


Yes, the EMI calculator can be used to generate the EMI value for all types of loans like home loans, personal loans, car loans, education loans, etc.

✅ Is the EMI calculator the same for a home loan, car loan, personal loan?


The EMI calculator formula E = P x r x (1 + r )n / ( ( 1 + r )n - 1 ) is the same for all EMI calculators. However, there are different EMI calculators available for a home loan, car loan, and personal loan. This is primarily because of the restriction in the maximum loan amount that is allowed as input. 

✅ How can I reduce my EMI using the loan EMI calculator?


When using the EMI calculator, to reduce your EMI:

  • Enter a smaller principal amount
  • Enter a lower rate of interest
  • Enter a longer loan tenure

✅ What inputs are required to calculate EMI using a loan EMI calculator?


To calculate EMI using the EMI calculator you will require 3 inputs - the loan amount you wish to avail, the rate of interest at which the lending company will offer a loan, and the period for which you wish to take the loan.