EMI calculator
Monthly instalment for a principal, rate and tenure.
When a shop needs an EMI, not a due date
A due date is one date. An EMI is a promise to finish a balance in equal monthly hits. Hardware shops use it for a water pump. Phone shops use it for a handset. You can also use it on the other side of the counter, to see what a small business loan would cost before you walk into a bank.
The formula is EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual percent divided by 12 and by 100) and n is months. On ₹50,000 at 14 percent a year for 12 months the instalment is a little over ₹4,490. That is the number to write on the khata, not a round ₹5,000 you invented because it was easy to remember.
Agree the rate in the sale, not in the chase
EMI only stays polite if the customer saw the rate when they took the goods. Recalculating a harsher rate three months later is how an overdue chat turns into a fight. If they miss a month, use the late-fee calculator on the overdue slice and keep this EMI on the original schedule, or rewrite both numbers together and show them the screen.
This is a planning tool. It is not a loan agreement, not a court document, and not tax advice. Fees a lender adds on top, a processing charge, or GST on a service are outside this box. Confirm those with the person who is actually lending.
Frequently asked questions
What does this EMI calculator actually compute?
The monthly instalment on a reducing-balance loan or a credit sale you have agreed to recover in equal months. It uses the standard EMI formula, not a flat-rate “divide by months and add interest” shortcut.
What numbers do I type in?
The principal in rupees, the interest rate per year as a percent, and how many months the customer (or you) will take to finish paying. The result is one monthly figure.
Is this the same EMI a bank would quote?
It is the same arithmetic most Indian banks use for a reducing-balance EMI. Fees, insurance and a floating reset are not in this box. Confirm the offer letter before you sign.
Can I use it for a shop credit sale, not a bank loan?
Yes. If you sold a fridge on 12 months at 14 percent a year, this is the monthly amount to write on the khata and on the reminder. Agree the rate when you sell, not when the customer is late.
What if the interest rate is zero?
The instalment is just principal divided by months. That is a plain split, not a loan.
Does it compound monthly?
The rate you type is annual. The formula converts it to a monthly rate and compounds that way, which is how a reducing-balance EMI works.
Why is my total more than principal plus simple interest?
Because EMI interest is charged on the shrinking balance each month, not as one lump at the start. The total paid is principal plus that stream of monthly interest. Use the interest calculator if you wanted a single simple-interest figure instead.
Can I change the tenure after I start collecting?
This tool does not store a schedule. Recalculate on the remaining principal and the months left, then write the new instalment on the khata so both of you see it.
Does anything get uploaded?
No. The numbers stay in your browser. There is no account and no history on our servers.
Will this work on a phone at the counter?
Yes. The three fields are sized for a thumb. Most shopkeepers run it while the customer is still standing there.
Is this legal or tax advice?
No. It is a planning number. A court, a bank or a GST officer will not treat this page as a document.
How is this different from the interest calculator?
Interest on this site is “what does this balance cost over so many days.” EMI is “what equal monthly payment finishes this principal in so many months.” Use EMI when you have agreed a tenure.
Can I print the result?
Use the browser print dialog, or copy the rupee figure into a note or a WhatsApp message. The page is the calculator, not a loan agreement.