What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

EMI Formula

EMI = [P × r × (1 + r)ⁿ] / [(1 + r)ⁿ – 1]

• P = Principal loan amount
• r = Monthly interest rate (annual rate / 12 / 100)
• n = Number of monthly installments

Pre-EMI (Broken Period Interest)

If your loan is disbursed before the first EMI date, you may need to pay interest only for the broken period (from disbursal to first EMI date). This is called Pre-EMI or Broken Period Interest. When you select "Calculate Pre-EMI (first installment)", the calculator will show this interest as the first row in the schedule, followed by regular EMIs from the next month onward.

• Pre-EMI is calculated as:
  Interest = Principal × Annual Rate × (Days in broken period / 365)
• After Pre-EMI, normal EMIs start from the first EMI date.
• If not selected, only regular EMIs are shown.

Tips for Loan Planning

• Choose a loan tenure that keeps your EMI affordable.
• Compare interest rates from multiple lenders.
• Prepay your loan when possible to save on interest.
• Check your eligibility and credit score before applying.

Use this calculator to estimate your monthly payments, including Pre-EMI if applicable, and plan your finances better.