EMI calculator

Last updated

Monthly instalment, total interest and the month-by-month repayment schedule of any loan.

The rate offered to you. Finobazaar does not fill in a lender's rate.

Reducing balance: interest only on what is still owed (most loans). Flat: interest on the full loan for the whole term — choose it only if the offer says so.

Numbers only; commas are fine. Tenure up to 40 years (480 months).

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How the EMI is worked out

An EMI (equated monthly instalment) is the same amount paid every month. On a reducing-balance loan each month's interest is charged only on the principal still owed, so the interest part of the EMI falls and the principal part rises over time.

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

P is the loan amount, r the monthly rate as a decimal (annual rate ÷ 12 ÷ 100) and n the number of monthly instalments. For an interest-free loan the EMI is simply P ÷ n.

Reading the schedule

  • The opening balance of each month is the closing balance of the month before.
  • Interest for the month = opening balance × r, rounded to the paisa; the rest of the EMI repays principal.
  • The last EMI is adjusted by a few paise so the loan ends at exactly zero.

Flat rate

Some lenders quote a flat rate: interest on the full loan amount for the whole term, even after you have repaid part of it. A flat rate looks lower than a reducing-balance rate with the same cost. Choose "Flat rate" only if the offer says so, and compare offers by EMI and total cost — the result shows the reducing-balance rate that costs the same.

Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.

Frequently asked questions

Which formula does the EMI calculator use?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P is the loan amount, r the rate per instalment as a decimal (annual rate ÷ 100 ÷ instalments a year) and n the number of instalments.
The explanation below the calculator sets out each step and what the result leaves out.

What details do I need for the EMI calculator?

You need: loan amount, interest rate and tenure. Take the figures from the lender's offer or key fact statement where you have one.

Does the calculator use a bank's interest rate?

No. You enter the rate offered to you. Finobazaar does not fill in a lender's rate, because rates depend on the lender, your profile and the date.

What is the difference between a flat rate and a reducing-balance rate?

Reducing balance: interest only on what is still owed (most loans). Flat: interest on the full loan for the whole term — choose it only if the offer says so. A flat rate looks lower than a reducing-balance rate with the same cost, so compare offers by EMI and total cost.

Is the result a loan offer or an approval?

Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.

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