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

Rs.
Years
%


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:

    This EMI calculator using the below formula in order to calculate the EMI.

    E = P * R * [ (1 + R)^n / ((1+R)^n - 1)]

    Where,
  • 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

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