How this calculator works
The monthly rate is the nominal annual rate divided by 12. Equal payments are due at each month end and interest is charged on the remaining balance. Enter a tenure containing a whole number of months. The table keeps full precision internally; actual lenders may round each payment and adjust the final instalment. The entered principal is the amount borrowed after any cash down payment. Upfront costs are excluded.
Formula
i = annual rate/12. EMI = P x i/[1 - (1 + i)^(-months)]. At zero interest, EMI = P/months. Interest = EMI x months - P.
Worked example
Borrowing INR 12,000 at 0% for 12 months gives INR 1,000 EMI. At 12%, INR 1,000 over two months gives INR 507.5124 EMI.
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Frequently asked questions
Does the quoted rate include fees?
Usually the contractual interest rate excludes some charges. This calculation uses the supplied nominal rate, not a fee-inclusive APR.
Why does early interest take more of the EMI?
Interest is charged on the larger opening balance, leaving less of each early payment for principal.
Does this guarantee approval?
No. The result is repayment arithmetic and does not assess credit eligibility or a lender offer.