Understanding EMI: How Your Monthly Loan Payment Is Calculated

EMI (Equated Monthly Installment) is the fixed amount you pay every month towards a loan, covering both principal and interest.

The Formula

EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ - 1), where P is the principal, r is the monthly interest rate, and n is the number of months.

Why It Matters

Understanding your EMI helps you plan your budget and compare loan offers. Use our EMI Calculator to instantly see your monthly payment, total interest, and a full amortization schedule.