Frequently asked questions
What is EMI?
EMI means equated monthly instalment, a periodic payment containing principal and interest for a conventional reducing-balance loan.
How is EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is monthly rate and n is number of instalments. For a zero-rate loan, EMI = P/n.
Is a lower EMI always better?
No. A longer tenure may reduce the monthly payment while increasing total interest.
Are prepayment charges always zero?
No. Applicable regulations and contract terms differ; check directly with your lender before assuming charges.
Are my calculations stored online?
No account or server-side loan record is created by this tool. Optional scenarios are saved locally in your browser.
Understand your loan before you borrow
An EMI contains interest and repayment of principal. As outstanding principal declines, the interest portion generally falls and the principal portion rises in a fixed-rate reducing-balance schedule. A lower monthly EMI may cost more overall if the term is longer.
How is EMI calculated?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), with P as principal, r as monthly interest and n as instalment count. A zero-rate loan uses P/n.
Understanding extra payments
Prepayments can reduce future interest. Check your agreement for charges and how additional amounts are applied. Estimates here do not automatically determine your legal entitlement.
Flat vs reducing rates
Flat-rate interest is charged on the original amount throughout the term. Reducing balance interest is calculated on outstanding principal. Advertised rates are not directly comparable.
Privacy-first calculations
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