How EMI Is Calculated: A Plain-English Guide

An EMI (Equated Monthly Instalment) keeps your loan repayment constant each month. The formula is EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the principal, r the monthly rate and n the number of instalments.

Early payments are mostly interest; later ones are mostly principal. A shorter tenure raises the EMI but lowers total interest. Try our EMI calculator to see your own schedule.