How to Calculate Your Loan EMI Easily

Whether you're planning to take a personal loan, home loan, or car loan, one question that always comes up is: “How much EMI will I need to pay?”

Understanding how your EMI (Equated Monthly Installment) is calculated is important before you borrow.

🧠 What Is EMI?

EMI stands for Equated Monthly Installment — the fixed amount you pay every month to your lender until your loan is fully repaid. It includes both:

Principal (the original loan amount)
Interest (charged by the lender)

📐 The EMI Formula

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:
P = Loan Amount (Principal)
R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
N = Loan Tenure in Months

📊 Example EMI Calculation

Suppose you take a ₹5,00,000 loan for 5 years (60 months) at 10% annual interest.

P = ₹5,00,000
R = 10 ÷ 12 ÷ 100 = 0.00833
N = 60

Plug these into the formula, and you get an EMI of approximately ₹10,623/month.
(You can skip the math and use our calculator 😄)

🔧 Use Our Free EMI Calculator

Don’t want to do manual calculations? Use our EMI Calculator — it's fast, accurate, and free!

Enter loan amount
Interest rate
Loan tenure

And we'll do the math instantly for you.

💡 Final Tips Before Taking a Loan

Compare interest rates from different lenders
Use prepayment options if available
Always read the terms and conditions

🙌 Start planning smarter with QuickEMI
Use our tools to make better financial decisions. Have questions? Contact us or leave a comment below!