Everyday Money Tools

EMI stands for equated monthly instalment: the fixed amount you pay every month until the loan is cleared. Each payment covers part of the principal and part of the interest. In the early months most of the EMI goes toward interest; toward the end, most of it goes toward the principal.

The interest rate and the tenure decide how expensive a loan really is. A longer tenure lowers the monthly EMI but raises the total interest you pay. Slide the tenure on this page and watch the total interest figure change.

This calculator uses the standard reducing-balance formula, with the first payment one month after the loan starts. It leaves out processing fees, insurance and prepayment charges, and a lender may round or schedule payments differently, so treat the result as an estimate and check your lender's schedule. If a lender quotes a flat rate instead of a reducing-balance rate, the real cost is higher than this calculator shows.