Calculate your Equated Monthly Installments for home loans, car loans, personal loans, and more.
EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
For a $250,000 loan at 7.5% interest for 20 years:
Your monthly EMI would be $2,011.56
Over the loan term, you would pay $232,774.40 in interest alone.
The total payment over 20 years would be $482,774.40
EMI consists of two components:
In the initial years of your loan, a larger portion of your EMI goes toward paying interest. As time progresses, a larger portion goes toward reducing the principal amount.
• Loan Amount: Higher loan amounts result in higher EMIs
• Interest Rate: Higher interest rates increase your EMI amount
• Loan Tenure: Longer loan terms reduce your EMI but increase total interest paid
• Processing Fees: One-time charges that affect the effective interest rate
Understanding these factors can help you make informed decisions about your loan and potentially save money by choosing the right loan terms.
The EMI is calculated using the following formula:
Where:
P = Principal loan amount
R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
N = Loan tenure in months
• Predictable monthly payments
• Convenient repayment structure
• Helps in financial planning
• Option to prepay and reduce tenure
• Home Loans: For purchasing property (typically 15-30 years)
• Car Loans: For vehicle purchase (typically 3-7 years)
• Personal Loans: For various personal needs (typically 1-5 years)
• Education Loans: For educational expenses (typically 5-10 years)