EMI Calculator


Simplify your budgeting with our EMI Calculator. Plan loan
repayments, manage finances, and stay in control of your expenses.

Loan EMI Calculator

Monthly EMI: ₹0
Principal Amount: ₹0
Total Interest: ₹0
Total Payment: ₹0
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What is an Equated Monthly Installment (EMI)?

An Equated Monthly Installment (EMI) is a consistent payment made by a borrower to a lender on a specified date each month. This fixed amount covers both interest and principal, gradually paying off the loan over a predetermined period, commonly used in various loan types like mortgages, auto loans, and student loans.

How does an Equated Monthly Installment (EMI) work?

EMIs contrast with variable payment plans, as they require borrowers to stick to a predetermined fixed payment amount each month. This structure ensures predictability for borrowers, aiding in effective personal budgeting. Lenders or loan investors benefit from the steady, reliable income stream generated by the loan interest.
Calculating the EMI can be done using either the flat-rate method or the reducing-balance method, also known as the reduce-balance method.

Factors that may Influence your Outstanding Balance

When considering taking out a loan to meet your financial obligations, it's essential to assess the sum you'll need to repay through consistent monthly installments, aligning with your capacity for repayment. To do so effectively, you must take several variables into account that can be adjusted to suit your loan requirements and repayment ability:
Interest Rate (ROI): The interest rate associated with your loan will significantly impact the amount due in each installment. It's advisable to compare various loan products before selecting the one that best suits your needs. Opting for a lower interest rate will result in reduced overall interest payments.
Loan Amount: The total amount borrowed also plays a crucial role in determining the monthly EMI. Hence, it's imperative to carefully select the loan amount.
Loan Term Alterations: Changes in the loan term, whether extended or shortened, directly affect the Equated Monthly Installment (EMI) payments. Opting for a longer tenure increases the overall interest paid over time, while a shorter term leads to lower interest payments but higher EMIs. Let us assume that these are the details of your car loan :

Amortization Schedule

An amortization schedule entails a comprehensive breakdown of periodic loan repayments, encompassing both principal and interest amounts, until the loan is entirely settled. It serves as a detailed roadmap for dissecting credit options like car loans into a sequence of unchanging payments. While the monthly payment remains constant, its composition varies over time.
One of the notable advantages of an amortization schedule is its utility for banks and financial institutions in meticulously monitoring loans. Below is the amortization schedule for a car loan valued at ₹8 lakhs.

What is a EMI Calculator?

An EMI (Equated Monthly Installment) calculator is a financial tool used to calculate the monthly installment amount that a borrower needs to repay towards a loan. It is commonly used for loans such as home loans, car loans, personal loans, and others where the borrower repays the loan amount in fixed monthly installments over a specified period. Thus, It also helps users understand the impact of interest rates and tenures on repayment obligations, aiding in informed decision-making.

How Does EMI Calculator Work?

The EMI (Equated Monthly Installment) Calculator assists borrowers in planning their budgets by calculating the monthly installment for loans. The EMI amount is calculated based on factors such as the loan amount, interest rate, and loan tenure (the period for which the loan is taken).
EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]

Advantages of using EMI Calculator

Budgeting: EMI calculators assist individuals in budgeting by providing a clear breakdown of monthly payments, helping them plan their finances more effectively.
Interest Understanding: Users can visualize how the interest component changes over the loan tenure, enabling them to assess the overall cost of borrowing and make informed decisions.
Prepayment Planning: EMI calculators help users evaluate the impact of making prepayments on their loans, allowing for strategic debt reduction and potential interest savings.
Loan Comparison: Users can compare EMIs for different loan amounts, interest rates, and tenures to choose the most suitable loan option based on their financial capacity.
Quick Decision Making: EMI calculators provide instant results, aiding individuals in making quick decisions when considering various loan options, ensuring timely financial commitments.