How the EMI Calculator Works
AnyTool EMI Calculator computes the Equated Monthly Installment in the browser using the standard reducing-balance formula EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. It then builds a full amortization schedule by charging interest on the outstanding balance each month, repaying the rest of the EMI as principal, and carrying the new balance forward until it reaches zero. The 0% case degrades cleanly to P ÷ n. All arithmetic is pure client-side JavaScript shared through a reusable, unit-tested loan engine that also powers other finance tools.
- EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1); r = annual rate ÷ 12 ÷ 100
- Reducing-balance: interest is charged on the outstanding balance each month
- Principal portion of each EMI = EMI − interest for that month
- Handles the 0% case as a flat EMI of principal ÷ months
- All math is client-side JavaScript — no server round-trip
