EMI Calculator
Plan your loans effectively by calculating your Equated Monthly Installment (EMI).
Monthly EMI
₹8,678
What is EMI?
EMI stands for Equated Monthly Installment. It 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 paid off in full. This predictable payment structure makes it easier for borrowers to manage their monthly budgets while financing large purchases like a home, a car, or funding personal needs.
How to Use This Calculator
This interactive calculator helps you instantly determine your EMI. Use the intuitive sliders to adjust the 'Loan Amount' you wish to borrow, the 'Interest Rate' offered by the bank (per annum), and the 'Loan Tenure' in years. The monthly EMI, total interest payable, and the total payment are calculated and updated in real-time as you move the sliders. Clicking the "Calculate EMI" button will also refresh the calculation. The pie chart gives you a clear visual breakdown of the original loan amount versus the total interest you will pay over the loan's entire duration, illustrating the true cost of borrowing.
How is EMI Calculated?
The mathematical formula to calculate EMI is a standard financial equation that ensures your loan is fully paid off by the end of the tenure:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
- P is the Principal Loan Amount (the amount you borrowed).
- R is the monthly rate of interest. This is calculated by dividing the annual interest rate by 12 and then by 100 to convert it into a decimal (annual rate / 12 / 100).
- N is the number of monthly installments, which is the loan tenure in years multiplied by 12.
Practical Applications
An EMI calculator is an essential tool for anyone considering a loan. It provides clarity and helps in making informed financial decisions.
Financial Planning
It helps you determine your monthly outflow and how much you can comfortably afford to borrow for a home, car, or personal loan, preventing you from over-leveraging your finances.
Loan Comparison
Easily compare different loan offers by seeing the impact of varying interest rates and tenures on your EMI and total interest paid. This helps you choose the most cost-effective loan.
Time Saving
Get instant, accurate calculations without complex manual computations, allowing you to experiment with different loan scenarios quickly and efficiently.