EMI formula and what each input means
For a standard fixed-rate reducing-balance model, EMI is calculated as P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate and n is the number of monthly instalments.
Toolmera converts the annual percentage rate you enter into a monthly rate by dividing by 12 and converts the tenure in years into monthly instalments. The estimate assumes the same rate applies across the full period.
PLoan principal
rAnnual rate ÷ 12 ÷ 100
nTenure in months
Worked example: ₹10 lakh at 9% for 5 years
For a ₹10,00,000 loan at a 9% annual rate over 60 months, the model gives an EMI of about ₹20,758 per month.
Across the full term, estimated interest is about ₹2,45,501 and estimated total repayment is about ₹12,45,501. Actual lender schedules can differ because of fees, rate resets, rounding conventions, prepayments or other terms.
Loan amount₹10,00,000
Monthly EMI≈ ₹20,758
Total interest≈ ₹2,45,501
Total repayment≈ ₹12,45,501
Fixed-rate estimate vs. floating-rate reality
This calculator keeps the entered annual rate constant. If your actual loan has a floating rate, a benchmark reset can change the EMI, the remaining tenure or both.
RBI guidance requires regulated lenders to communicate the impact of floating-rate resets on EMI-based personal loans. For an actual borrowing decision, use the lender’s Key Facts Statement and current repayment schedule rather than this estimate alone.