Frequently Asked Questions
What is EMI? ▾
EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month to repay a loan. Each EMI includes a portion of the principal and the interest charged for that month.
How is EMI calculated? ▾
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P is the principal, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the number of monthly instalments.
Does a higher tenure reduce EMI? ▾
Yes — a longer tenure lowers your monthly EMI but significantly increases total interest paid. Use the Prepayment Simulator to find your optimal balance.
What is a good EMI-to-income ratio? ▾
Financial advisors recommend keeping total EMI obligations below 30–40% of take-home income. Above 50% is considered high-risk and may affect loan approval.
How accurate are the results? ▾
emi-elly uses the standard EMI formula used by Indian banks and RBI-regulated NBFCs. Results are accurate for fixed-rate loans. For floating-rate loans, actual EMIs may vary as rates change.