How EMI Calculation Works
EMI (Equated Monthly Installment) is a fixed monthly amount paid to repay a loan over a specified period. The formula used is: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments.
This calculator breaks down the total payment into principal and interest components, helping you understand the true cost of borrowing. Adjusting the interest rate or tenure shows how these factors impact your monthly outflow.