Equated Monthly Installment (EMI) is the amount payable every month to the bank or financial institution until the loan is fully repaid. It consists of both interest and principal components. The interest portion is initially higher and reduces gradually over time.
Where:
P = Principal Loan Amount
r = Monthly Interest Rate (Annual Rate
÷ 12 ÷ 100)
n = Loan Tenure in Months
For ₹10,00,000 loan at 10.5% annual interest over 10 years:
Pro Tip: Use prepayments to reduce loan tenure and total interest. Check our Home Loan EMI Calculator with Prepayments for advanced calculations.