What is EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. It consists of both principal and interest components.
EMI Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n – 1)
- P = Loan amount
- r = Monthly interest rate
- n = Total number of months
Why Use an EMI Calculator?
- Know your monthly obligation
- Compare loan options
- Plan finances better
- Understand total interest cost
How Interest Affects EMI
Higher interest rates increase EMI and total interest paid. Even a 1% change can significantly affect repayment.