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EMI Calculator

The EMI calculator is a handy tool for borrowers, making it easy to determine monthly loan payments. Whether it’s for a home, car, or any other loan, this calculator considers the loan amount, interest rate, and tenure to calculate your Equated Monthly Installment (EMI). By breaking down repayments into manageable monthly amounts, it helps you budget effectively and stay on track with your loan repayments. Say goodbye to guesswork and budget with confidence using the EMI calculator.

How are EMIs calculated for a Loan?

When you make an Equated Monthly Installment (EMI) payment, you’re repaying a portion of This interest can be either fixed or floating, with the latter fluctuating over time. However, the formula used to calculate EMIs remains constant: EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1]. Here, it’s important to grasp the key components of this formula: P for principal, R for rate of interest, and N for tenure.

For example: Let’s say you’re borrowing Rs. 3,50,000 for 3 years at an annual interest rate of 15%.

Using the formula:

P = Rs. 3,50,000 N = 3 years = 36 months (12 x 3) R = 15% per annum = 15/12 = 1.25% per month

Now, let’s calculate the EMI:

EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1] = [3,50,000 × 1.25/100 × (1 + 1.25/100)^36] / [(1 + 1.25/100)^36 – 1]

Using this formula, the EMI would be calculated to be approximately Rs. 12,151.98.

So, for a loan of Rs. 3,50,000 taken for 3 years at an annual interest rate of 15%, the Equated Monthly Installment (EMI) would be approximately Rs. 12,151.98.

How does an EMI Calculator work?

An EMI calculator relies on three fundamental yet variable factors: the loan amount, rate of interest, and loan duration. The EMI is determined based on these factors, with variations depending on each component:

Loan Amount

Also known as the principal, the loan amount directly impacts the interest payable. Opting for a higher loan amount results in larger EMIs during calculation.

Rate of Interest (ROI)

The interest payable is influenced by the chosen rate of interest, which can vary among lenders and loan types. Additionally, factors such as floating or variable interest rates can significantly impact EMIs.


The loan duration, or tenure, varies depending on the loan type and lender. It’s interconnected with the rate of interest, and both factors influence EMIs.

An EMI calculator efficiently manages these variable components to provide accurate calculations, empowering borrowers with essential financial insights.

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