EMI Calculator
EMI Calculator is a tool that helps users calculate the Equated Monthly Installment (EMI) for loans, such as home loans, car loans, or personal loans. It simplifies financial planning by providing a clear understanding of the monthly repayment amount based on the loan amount, interest rate, and repayment tenure.
Estimation is based on the loan amount
Loan Amount
₹Expected Rate of Return
8 %
30 %
Select Duration
1 Yrs
30 Yrs
EMI
₹ 0
Principal Amount
₹ 0
Interest
₹ 0
Total Payable
₹ 0
Key Components of EMI
1. Loan Amount (Principal): The total amount of money borrowed from the lender.
2. Interest Rate: The annual rate of interest charged by the lender, converted into a monthly rate for EMI
3. Loan Tenure: The time period (in years or months) over which the loan is to be repaid.
EMI Calculator Formula
Here's the formula to calculate EMI:
E = [P x R x (1+R) ^N] / [(1+R) ^ (N-1)]Where,
E = EMI
P = Principal Amount
R = Rate of interest. This is calculated on a monthly basis. If the interest rate is 4% per annum then R will be 4/12/100 = 0.0033.
N = Duration in months
Example of EMI Calculation
Let’s say you borrow ₹10,00,000 at an annual interest rate of 10% for 5 years:
Loan Amount (P): ₹10,00,000
Annual Interest Rate: 10%
Monthly interest rate R=10/12/100=0.00833
Loan Tenure (N):5×12=60 months
E = [1000000 x 0.00833 x (1+0.00833)^60] /((1+0.00833)^60)-1The EMI would be approximately ₹21,247.96 per month.
How It Helps
An EMI Calculator is an essential financial tool that simplifies loan repayment planning, ensures better budgeting, and makes it easier for borrowers to evaluate loan offers.