EMI formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r the monthly interest rate (annual ÷ 12 ÷ 100) and n the tenure in months. Early EMIs are interest-heavy; later ones repay mostly principal — see the schedule above.
FAQ
How can I reduce my EMI?
Three levers: a longer tenure (lower EMI, but more total interest), a lower rate (negotiate or refinance), or a smaller principal (bigger down payment or prepayments).
Does this work for home loans?
The formula is identical, but home loans have longer tenures and tax benefits — use our dedicated Home Loan EMI Calculator with prepayment support.