EMI Calculator Online Free

EMI stands for Equated Monthly Instalment. It 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 fully paid off.

EMI is calculated using the formula: EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the principal loan amount, r is the monthly interest rate, and n is the number of monthly instalments.

Prepayment can reduce either your EMI amount or your loan tenure depending on the option you choose with your lender. Reducing tenure saves more on total interest paid.

Yes, this calculator uses the standard reducing balance EMI formula used by banks and financial institutions in India. The results match what banks use for home loans, car loans, and personal loans.