What Is An EMI? 

EMI or equated monthly installments is the fixed payment that is made by the borrower to the lender to repay a loan borrowed. EMIs are split into the principal and interest components. The loan should be fully repaid within a certain duration.

Let us now see how an EMI against a loan is calculated. 

How Is An EMI Calculated? 

The mathematical formula to calculate the EMI is EMI = P * r * (1+ r)n/(1+r)n - 1). 


p = loan amount 

R = interest rate

N = tenure in a number of months

For instance, if the rate of interest is 8% if the tenure is 12  months, and the principal amount is Rs. 2 Lakhs, then the EMI is Rs. 2,165. 

  • The EMI payments are in direct proportion to the loan amount and interest rates
  • The EMI payments are inversely proportional to the tenure of the loan.   

EMI Loan Calculator 

Many financial marketplaces offer EMI loan calculators, which can be used to calculate the EMIs easily. CreditMantri’s EMI loan calculator requires entering the loan amount, loan tenure, and rate of interest. The monthly EMI payment and the total interest payable are calculated. 

Access CreditMantri Personal loan emi calculator
Access Credimantri Home loan EMI Calculator