EMI stands for Equated Monthly Instalment — a fixed payment made every month toward a loan, covering both principal and interest, until the loan is fully repaid.

Does a higher tenure reduce EMI?

Yes. A longer tenure spreads the principal over more instalments, which lowers the EMI amount but increases the total interest paid over the life of the loan.

Is the EMI the same every month?

For a fixed-rate loan, yes — the EMI stays constant, though the split between principal and interest within each instalment changes over time.

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EMI Calculator

Work out the monthly instalment on a home, car or personal loan, along with the total interest you'll pay over its lifetime.

Loan details

Loan amount ₹25,00,000

Interest rate (annual) 8.5%

Tenure (years) 20 yrs

Your EMI

Monthly instalment

₹0

Principal amount₹0

Total interest₹0

Total payment₹0

Assumes a fixed interest rate for the full tenure. Actual EMI may vary with your lender's compounding and processing terms.

How EMI is calculated

Every EMI is built from three inputs: how much you borrow (principal), what it costs to borrow (interest rate), and how long you take to repay it (tenure). Stretching the tenure lowers the monthly outgo but raises the total interest, because you're paying interest on the outstanding balance for longer.

EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ − 1]
P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months

For example, a ₹25,00,000 loan at 8.5% annual interest over 20 years works out to a monthly rate of roughly 0.708% and a tenure of 240 months — plug those into the formula above to get the instalment shown in the panel.

Frequently asked

What is EMI?

A fixed monthly payment that covers both principal and interest, continuing until the loan is repaid in full.

Does a longer tenure reduce the EMI?

Yes — spreading the same principal over more months lowers each instalment, but increases the total interest paid across the loan.

Can the EMI change during the loan?

On a fixed-rate loan it stays constant. On a floating-rate loan, the EMI (or tenure) can change if the lender's benchmark rate moves.

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Figures are estimates for planning purposes only and do not constitute financial advice.