EMI calculation, explained simply — with a live calculator
What EMI really means, and how total interest is calculated.
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1)
P = loan amount, r = monthly interest rate, n = number of months.
Example: ₹1,00,000 at 9% per year for 24 months gives an EMI of about ₹4,568. Try your own numbers below.
Enter values and tap Calculate.
Why it works this way
- Monthly rate = yearly rate ÷ 12 ÷ 100.
- Total interest = total payment − loan amount.
Common mistakes
- Comparing only EMI, not total interest.
- Forgetting processing charges.
Is a lower EMI always better? No — a longer loan usually means more total interest.
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