EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay your loan. It includes both principal and interest, spread across the loan tenure.

EMI = (P × r × (1 + r)^n) / ((1 + r)^n − 1)
Where:
P = Loan Amount
r = Monthly Interest Rate = R / (12 × 100)
n = Loan Tenure in Months

Example:
Loan Amount = 10,00,000
Interest Rate = 12% per annum
Tenure = 5 years (60 months)
Step 1: Monthly interest rate
r = 12 / (12 × 100) = 0.01
Step 2: Number of months
n = 5 × 12 = 60
Step 3: Apply formula
EMI = (10,00,000 × 0.01 × (1.01)^60) / ((1.01)^60 − 1)
Monthly EMI ≈ 22,244
Final Output:
Monthly EMI = 22,244
Total Interest = 3,34,640
Total Amount Payable = 13,34,640

Yes. A longer tenure reduces your monthly EMI, but increases the total interest you pay over time.

Your EMI depends on :
• Loan amount
• Interest rate
• Loan tenure

In fixed-rate loans, EMI remains the same.
In floating-rate loans, EMI may change if interest rates change.

You can reduce EMI by:
• Choosing a longer tenure
• Negotiating a lower interest rate
• Making a higher down payment
• Prepaying part of the loan