EMI Calculator

Monthly EMI:

Total Interest:

Total Payment:

User Guide & Information

What is an EMI Calculator and Its Uses?

An EMI (Equated Monthly Installment) Calculator is a tool that helps you estimate the monthly payment required to repay a loan. It considers the loan amount, interest rate, and tenure to compute the EMI, total interest, and total payment.

Uses of an EMI Calculator:

  • Financial Planning: Helps borrowers plan their budget by estimating monthly loan repayments.
  • Loan Comparison: Allows comparison of different loan offers based on interest rates and tenures.
  • Time-Saving: Provides instant calculations without manual computations.
  • Decision Making: Assists in choosing loan amounts and tenures that suit your financial capacity.
  • Home Loan Planning: Calculate EMIs for a ₹50 lakh home loan at 7.5% interest over 20 years to budget for your family’s dream home.
  • Car Loan Comparison: Compare EMIs for a ₹10 lakh car loan at 8% vs. 9% interest over 5 years to find the most cost-effective option.
  • Personal Loan Estimation: Estimate monthly payments for a ₹2 lakh personal loan at 12% interest for 3 years to cover family expenses like education or medical costs.
  • Fixed vs. Floating Rates: Test different interest rates to understand the impact of fixed (stable) vs. floating (variable) rates on your EMI, helping you choose the best loan type.

How is EMI Calculated?

The EMI is calculated using the formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Where:

  • P: Principal Loan Amount (the amount borrowed).
  • R: Monthly Interest Rate (annual rate divided by 12 and converted to a decimal).
  • N: Loan Tenure in Months (tenure in years multiplied by 12 or directly in months).

This formula accounts for compound interest, ensuring the EMI covers both principal repayment and interest over the loan period.

How to Use This Calculator

Follow these steps to calculate your EMI:

  1. Enter Loan Amount: Input the total loan amount in rupees (e.g., 100000).
  2. Enter Interest Rate: Provide the annual interest rate as a percentage (e.g., 8.5).
  3. Enter Loan Tenure: Specify the loan duration in years or months using the dropdown (e.g., 5 years or 60 months).
  4. Calculate: Click the "Calculate EMI" button to see your monthly EMI, total interest, and total payment.
  5. View Chart: A donut chart will display the breakdown of principal and interest.