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Finance

Loan EMI Calculator

Compute monthly EMI for loans using principal, interest rate, and tenure.

How This Tool Works

The Loan EMI Calculator finds the fixed monthly payment for any amortizing loan given the principal, annual interest rate, and loan tenure. EMI stands for Equated Monthly Instalment — it stays the same every month but the split between interest and principal changes. Early in the loan, most of the EMI goes toward interest. Over time, as the outstanding balance falls, more of each payment reduces the principal. Use this to compare loan offers, evaluate the impact of tenure changes, or check whether a loan fits your monthly budget.

How to Use

  1. Enter the loan principal in field A (e.g. 500000 for ₹5 lakh).
  2. Enter the annual interest rate in field B as a number (e.g. 10.5 for 10.5% per year).
  3. Click Run to see the monthly EMI.
  4. To compare tenures: note the EMI, then change the tenure setting and run again — longer tenure means lower EMI but more total interest.

Common Questions

How does tenure affect EMI and total interest?

A ₹10 lakh loan at 10%: 5-year tenure gives EMI ₹21,247, total interest ₹2.7 lakh. 10-year tenure gives EMI ₹13,215, total interest ₹5.9 lakh. Longer tenure = lower EMI but 2× the total interest paid.

Can I reduce my EMI after taking a loan?

Yes, through balance transfer to a lower-rate lender, partial prepayment (which reduces outstanding principal and lowers future EMI), or requesting a tenure extension from your lender.

What is a prepayment penalty?

Some fixed-rate loans charge a fee (typically 2–3%) if you repay before the scheduled end date. Check your loan agreement before making large prepayments.