KaroDesk

EMI Calculator

Enter the loan amount, annual interest rate and tenure in months to see the EMI, the total interest you will pay and the total outflow over the loan.

Reducing-balance method, the same one banks and NBFCs use for term loans in India.

Share this toolWhatsApp
₹
%
mo

EMI summary

Monthly EMI
₹21,493.90
Principal
₹10,00,000.00
Total interest
₹2,89,634.00
Total payable
₹12,89,634.00
Tenure
60 months
Reducing-balance EMI. Processing fees and insurance are not included.

Formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

where r = annual rate ÷ 12 ÷ 100 and n = tenure in months

Processing fees, insurance and GST on charges are not part of the EMI — budget for them separately.

Worked example

A ₹10,00,000 loan at 10.5% for 60 months has an EMI of about ₹21,494, total interest of roughly ₹2,89,640 and a total payable near ₹12,89,640.

How to use this calculator

  1. 1Enter the loan amount you plan to borrow.
  2. 2Enter the annual interest rate quoted by the lender.
  3. 3Enter the tenure in months, then read the EMI, total interest and total repayment.

When businesses use it

  • Checking whether a machinery loan EMI fits in your monthly cash flow.
  • Comparing two lenders where one offers a lower rate but a shorter tenure.
  • Planning a vehicle purchase for the business and its effect on working capital.

How lenders build your EMI

An equated monthly instalment keeps the payment constant while the split inside it changes every month. Early instalments are mostly interest because the outstanding principal is high; later instalments are mostly principal. On a five-year loan you will have repaid less than a third of the principal at the halfway mark, which matters if you plan to close the loan early or sell the asset.

Three inputs move the EMI: principal, rate and tenure. Extending the tenure lowers the monthly figure but raises total interest sharply — stretching a ₹10 lakh loan at 10.5% from three years to five cuts the EMI by roughly a third while adding well over a lakh in interest. The right tenure is the shortest one whose EMI you can service through a slow month.

The EMI is not the whole cost of borrowing. Processing fees of 0.5–2% plus GST, documentation charges, insurance bundled at disbursement and prepayment penalties on fixed-rate loans all add to the effective rate. Ask for the annual percentage rate rather than the headline rate when you compare two offers.

Before you sign the loan agreement

  • Ask whether the rate is fixed or floating, and what the reset frequency is.
  • Check the prepayment charge — floating-rate loans to individuals usually have none.
  • Confirm whether insurance is optional and whether it is funded from the loan.
  • Keep total EMIs across all loans under about 40–50% of net monthly income.

Learn the maths behind it

  • How to calculate EMI

    EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of months.

Was this tool useful?

Related tools

Loan Calculator

Find the loan amount your monthly EMI budget can comfortably service.

Use tool

ROI Calculator

Measure return on investment and the annualised return over a holding period.

Use tool

Cash Flow Calculator

Track money in, money out, closing balance and how long your cash lasts.

Use tool

Frequently Asked Questions

Need to create an invoice?

Calculate GST instantly, then create a professional invoice in seconds.

Create Free Invoice

Calculations happen instantly in your browser. Your calculator inputs aren't sent to our servers. KaroDesk provides calculations and information for general informational purposes. Results should be verified against applicable laws, official notifications, employer policies, lender terms, or professional advice where appropriate. Read our full disclaimer.