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How-to guide

How to Calculate EMI: Formula, Steps & Examples

Learn how to calculate EMI — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Aarav Mehta, CFA, MBA Finance · Updated Jun 2026 · 2 min read

Calculating your monthly EMI is straightforward once you know the EMI formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the EMI Calculator.

What is EMI?

Calculate your monthly loan EMI, total interest and total payment. The figure you are solving for here is the monthly EMI, expressed in INR.

The EMI formula

This calculation combines several inputs through a multi-step method rather than a single one-line formula. Enter the values below and the calculator resolves each step in order. The inputs it needs are:

  • Loan amount — a money amount. Example: ₹10,00,000.
  • Interest rate (p.a.) — a percentage, such as an annual rate. Example: 9%.
  • Loan tenure — a value you set on the slider. Example: 20 years.

How to calculate it step by step

  • Write down the loan amount (for example, ₹10,00,000).
  • Write down the interest rate (p.a.) (for example, 9%).
  • Note the loan tenure (for example, 20 years).
  • Apply the formula above to get your monthly EMI.
  • Double-check the result with the EMI Calculator.

Worked examples

Example 1

Input / OutputValue
Loan amount₹10,00,000
Interest rate (p.a.)9%
Loan tenure20 years
Monthly EMI₹8,997
Principal amount₹10,00,000
Total interest₹11,59,342
Total payment₹21,59,342

With loan amount of ₹10,00,000, interest rate (p.a.) of 9% and loan tenure of 20 years, the monthly EMI works out to ₹8,997.

Example 2

With loan amount of ₹20,00,000, interest rate (p.a.) of 9% and loan tenure of 20 years, the monthly EMI works out to ₹17,995.

ResultValue
Monthly EMI₹17,995
Principal amount₹20,00,000
Total interest₹23,18,685
Total payment₹43,18,685

Example 3

With loan amount of ₹5,00,000, interest rate (p.a.) of 9% and loan tenure of 20 years, the monthly EMI works out to ₹4,499.

ResultValue
Monthly EMI₹4,499
Principal amount₹5,00,000
Total interest₹5,79,671
Total payment₹10,79,671

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.
  • Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).

Prefer not to do the maths by hand? — the EMI Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring finance calculators with these tools: SIP Calculator, CAGR Calculator, FD Calculator, Effective Annual Rate (EAR) Calculator, RD Calculator.

Calculators in this guide

Frequently asked questions

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the EMI Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The monthly EMI is expressed in INR. Make sure your inputs use matching units so the result is correct.

CAGR Table: Duration by Initial value

Reference table of duration for CAGR across a range of initial value values — exact, engine-computed figures you can read off at a glance.

1 min read

Aarav Mehta · CFA, MBA Finance

Aarav reviews every finance formula on CalcHub for accuracy.