Loan EMI Calculator
An EMI or Equated Monthly Installment, is a fixed payment amount made by a borrower to a lender at a specified date each calendar month.
EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is fully paid off along with interest.
EMI Calculator
Result:
Loan Amount: | 0 |
Loan Tenure: | 0 |
Interest rate %: | 0 |
EMI | 0 |
Total EMI Paid | 0 |
Total Interest Paid | 0 |
Split up of Interest and Loan:
At the early periods of the loan term, a huge portion of the EMI is paid to the interest payment. Only fewer percentage of EMI is paid off against Principal.
As the loan term nears the end, a higher percentage of the EMI go towards the principal and fewer percentage of EMI go towards interest.
An EMI is always debited on a constant agreed date of every month.
Borrowers can pay their EMIs through different ways such as post-dated cheques or by giving auto debit instructions to your respective bank.
Advantages of EMI
- EMI is an easy way to consumers to buy expensive things like House, Auto and other expensive utilities without having the entire capital amount in hand.
- The borrower can pay the loan in monthly installments, so called EMI.
- The installment and tenure can be decided by the borrower as per his or her convenience and agreed by the lending bank.
Disadvantages of EMI
- The borrowers have to pay the EMIs for the entire loan tenure or until they are done with the principal amount and the applicable interest rate.
- If the borrower misses to pay EMI, then the banks can charge for late fees.
- The borrower has to pay extra amount than the actual borrowed amount in form of interest rate.
How to use this EMI Calculator?
- Loan Amount: Enter the loan amount you wish to borrow from the bank.
- Loan Tenure: Enter the number of years you wish to take to repay the loan.
- Interest Rate: Enter the loan interest rate offered by the bank. This will vary based on the bank you wish to apply for the loan.
EMI Calculation Formula:
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This EMI calculator using the below formula in order to calculate the EMI.
- E = resulting EMI
- P = is the total borrowing amount (Principal)
- R = is the interest rate, on monthly basis
- n = is the loan tenure, in terms of months