Our EMI calculator helps you plan your finances by instantly calculating your monthly loan payments, total interest, and the total cost of your loan. Simply enter your loan amount, interest rate, and tenure to get accurate results that will help you make informed budgeting decisions for your personal loan.
What is an EMI?
EMI stands for Equated Monthly Installment. It is a fixed amount of money that a borrower pays to a lender at a specific date each calendar month. EMIs consist of both the principal amount and the interest, ensuring that over a specified number of years, the loan is fully paid off.
How is EMI Calculated?
EMI (Equated Monthly Installment) is a fixed amount of money that you pay to the bank or lender every month until your loan is fully paid off. The calculation depends on three main factors: the Loan Amount (Principal), the Interest Rate, and the Loan Duration (Tenure).
The EMI Calculation Formula:
Mathematically, EMI is calculated using the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]
What the formula means:
P (Principal): The total amount of money you borrowed.
R (Rate of Interest): The monthly interest rate (calculated by dividing the annual interest rate by 12).
N (Tenure): The total number of months for which the loan is taken.
Advantages of using an EMI Calculator:
Accuracy: Eliminates the risk of manual calculation errors.
Financial Planning: Helps you decide if the loan fits your monthly budget.
Instant Results: You can try different interest rates and tenures to see what suits you best.
Disclaimer:
This EMI calculator is for illustrative purposes only and provides estimated values. Actual EMI may vary based on bank processing fees, taxes, and other hidden charges. Please verify with your financial institution before making any decisions.