EMI Calculation Formula Explained (and How to Pay Less Interest)
🏦Try the free emi calculatorNo download, works on your phoneEMI is the fixed amount you pay every month until the loan is closed. Part of it is interest and part repays the loan.
The formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P = loan amount
- r = monthly interest rate (yearly rate ÷ 12 ÷ 100)
- n = number of months
Example: ₹10,00,000 at 9.5% for 5 years gives an EMI of about ₹21,000 and total interest of about ₹2.6 lakh. Check yours with the free EMI calculator.
How to pay less interest
- Choose a shorter tenure if you can manage the EMI
- Prepay whenever you get a bonus; it cuts interest the most in the early years
- Compare offers: a 0.5% lower rate saves a lot on a long home loan
The Loan EMI & Debt Planner shows exactly how much each prepayment saves.
This is an estimate. Your bank may calculate slightly differently.
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