EMI Calculator – Loan Repayment Planner
Calculate your loan EMIs and plan your repayments with our easy-to-use calculator.
What is an EMI Calculator?
An EMI (Equated Monthly Installment) calculator is a financial tool that helps borrowers estimate the monthly payment amount for their loans. It calculates the fixed payment amount that includes both principal and interest components, which a borrower needs to pay to the lender on a specified date each month until the loan is fully repaid.
The EMI calculator takes into account three key parameters: the loan amount (principal), the interest rate, and the loan tenure (in months or years). Using these inputs, it applies a standard mathematical formula to determine the monthly installment amount.
This calculator is particularly useful when planning for various types of loans such as home loans, personal loans, car loans, or education loans. It helps borrowers understand their repayment obligations and plan their finances accordingly.
How to Use This Calculator
- Enter the loan amount - This is the principal amount you wish to borrow from the lender.
- Input the interest rate - Enter the annual interest rate offered by the lender (in percentage).
- Select the loan tenure - Choose how many years you plan to take for repaying the loan.
- View the results - The calculator will instantly show your monthly EMI, total interest payable, and the total amount you will pay over the loan tenure.
- Analyze the repayment chart - Visualize how your loan repayment progresses over time with our interactive chart showing principal and interest components.
Calculation Formula & Example
The Formula
EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n - 1]
Where:
- EMI = Equated Monthly Installment
- P = Principal loan amount
- r = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- n = Loan tenure in months
Example Calculation
Let's calculate the EMI for a loan with the following parameters:
- Loan amount (P): ₹10,00,000
- Annual interest rate: 10%
- Loan tenure: 5 years (60 months)
Step 1: Calculate the monthly interest rate (r)
r = 10% ÷ 12 ÷ 100 = 0.00833
Step 2: Apply the formula
EMI = [10,00,000 × 0.00833 × (1 + 0.00833)^60] ÷ [(1 + 0.00833)^60 - 1]
EMI = [10,00,000 × 0.00833 × 1.647] ÷ [1.647 - 1]
EMI = 13,719 ÷ 0.647
EMI = ₹21,247
Result:
- Monthly EMI: ₹21,247
- Total amount paid: ₹12,74,820 (₹21,247 × 60 months)
- Total interest paid: ₹2,74,820 (₹12,74,820 - ₹10,00,000)
Benefits of Using This Calculator
- Financial Planning - Accurately estimate your monthly loan obligations to plan your budget effectively.
- Compare Loan Options - Easily compare different loan offers by adjusting interest rates and tenures to find the most suitable option.
- Understand Cost of Borrowing - Visualize the total interest you'll pay over the loan tenure to understand the true cost of borrowing.
- Make Informed Decisions - Evaluate the impact of different loan amounts, interest rates, and tenures on your monthly payments.
- Plan Prepayments - Understand how making prepayments can reduce your loan tenure and interest outgo.
- Loan Affordability Check - Determine if a loan fits within your budget by checking if the EMI is within your repayment capacity.
Calculator Use Cases
Calculate EMIs for different home loan amounts to determine what property price range fits your budget. Adjust down payment amounts to see how they affect your monthly obligations.
Compare EMIs for different car models and loan tenures to make an informed decision about which vehicle you can afford and the optimal repayment period.
Estimate EMIs for personal loans to address immediate financial needs while ensuring the repayment fits within your monthly budget without causing financial strain.
Compare your current loan EMI with potential refinancing options to determine if switching to a lower interest rate loan would result in significant savings.
Frequently Asked Questions
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