Loan & EMI Calculator

EMI stands for Equated Monthly Installment — the fixed amount paid every month toward a loan until it's fully paid off. It's calculated with the standard amortization formula, M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments. Each month's payment is split between interest (on the remaining balance) and principal — early payments are mostly interest, and that split gradually shifts toward principal as the balance shrinks.

A loan's interest rate is quoted as a nominal ANNUAL rate, but payments happen monthly, so the rate applied each month is the annual rate divided by 12 — a 6% annual rate means a 0.5% monthly rate. This is a genuinely common source of calculation errors: dividing by 12 is the standard convention lenders and EMI calculators use, and it's different from a compounded monthly-equivalent rate, which would be calculated a different way and used for a different purpose (comparing effective annual yields, not amortizing a loan).

No — this calculates a pure fixed-rate amortization based only on the principal, rate, and term you enter. Real loans often include origination fees, closing costs, mortgage or loan insurance, taxes escrowed into the payment, or a variable rate that changes over time — none of which this simple calculator models.

No. This computes payments purely from the numbers you enter — it isn't a loan offer, quote, or pre-approval from any lender, and it doesn't reflect any specific lender's actual rates, fees, or approval criteria. For a real loan, terms come from the lender itself.