What is EMI?
Equated Monthly Instalment (EMI) is the regular payment used to repay a loan over a chosen tenure. The payment depends mainly on principal, interest rate and loan duration.
Standard EMI formula
Here, P is the loan principal, r is the monthly interest rate expressed as a decimal, and n is the number of monthly payments.
Example
For a ₹5,00,000 loan at 10% annual interest over 5 years, convert the annual rate to a monthly rate and use 60 monthly payments. The PenniTools calculator can perform the calculation instantly and show the repayment estimate.
How tenure changes the result
A longer tenure can reduce the monthly EMI but may increase the total interest paid. A shorter tenure generally increases the monthly payment while reducing the number of interest-bearing months.
Use the EMI Calculator to enter your loan amount, rate and tenure. For other money tools, visit Finance Calculators.
Calculator results are estimates. Confirm the final rate, fees, taxes and repayment schedule with your lender or official documents.
Worked EMI example
For a ₹5,00,000 loan at 10% annual interest over 5 years, the monthly rate is 10% ÷ 12 = 0.8333% (about 0.008333 as a decimal) and the tenure is 60 payments. The standard reducing-balance formula gives an EMI of about ₹10,624 per month. The exact lender schedule may differ because of rounding, fees, dates or the interest method used.
Compare loans fairly
- Compare the same principal and repayment tenure.
- Check whether the quoted rate is fixed or floating and how often it can change.
- Include processing fees, insurance, taxes and other charges when comparing total cost.
- Review prepayment or foreclosure charges and any late-payment fees.
- Ask the lender for the amortisation schedule before accepting the offer.
Why the calculator and lender quote may differ
This calculator estimates a standard monthly repayment. Actual amounts can vary with disbursement date, daily interest, rate resets, fees added to the loan, payment dates and lender-specific rounding. Use the result for planning, not as a loan offer or guarantee.