Check whether a loan EMI fits your monthly income before you commit to it.
The EMI formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate and n the number of monthly instalments. The calculator also totals the interest you would pay over the whole tenure.
Comparing EMI with income
Dividing all monthly EMIs by take-home income shows how much of your income is already committed. A lower share leaves more room for savings and emergencies.
Frequently asked questions
What EMI share is safe?
There is no universal rule. Many lenders look for total EMIs below roughly 40 to 50 percent of take-home income, and many planners prefer lower. The verdict is a rule of thumb, not advice.
Is the interest rate fixed?
The calculator assumes one fixed rate for the full tenure. Floating-rate loans can change.
Are processing fees included?
No. Fees, insurance and prepayment charges are not included.