Loan EMI Calculator
Results
Monthly EMI: —
Total Interest: —
Total Payment (P + I): —
Loan EMI Calculator – Plan Your Loan Repayments Smartly
Taking a loan can help you achieve your goals, whether it’s buying a home, a car, or funding education. But before applying for any loan, it’s important to know how much you need to pay every month. A Loan EMI Calculator helps you calculate your monthly installments instantly, making financial planning easier.
🔎 What is EMI?
EMI stands for Equated Monthly Installment. It is the fixed amount a borrower pays to the lender every month until the loan is fully repaid. Each EMI consists of two parts:
- Principal Amount – the original loan amount
- Interest Amount – the cost of borrowing
📐 Formula for EMI Calculation
EMI=P×R×(1+R)N(1+R)N−1EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}EMI=(1+R)N−1P×R×(1+R)N
Where:
- P = Loan amount
- R = Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
- N = Loan tenure in months
🧮 Example
Suppose you take a loan of ₹5,00,000 at an interest rate of 10% per annum for 5 years (60 months):
- Loan Amount (P) = ₹5,00,000
- Annual Interest Rate = 10% → Monthly Rate (R) = 0.0083
- Tenure (N) = 60 months
EMI=₹10,624 (approximately)EMI = ₹10,624 \, (approximately)EMI=₹10,624(approximately)
So, your monthly payment will be around ₹10,624.
✅ Benefits of Using a Loan EMI Calculator
- Helps you plan your budget before taking a loan
- Gives clarity about monthly obligations
- Allows easy comparison of different loan offers
- Saves time and avoids manual calculation errors
📊 Factors That Affect EMI
- Loan Amount: Higher loan = higher EMI
- Interest Rate: Higher interest = higher EMI
- Tenure: Longer tenure = lower EMI (but more total interest)
⚠️ Important Notes
- Always check processing fees and hidden charges
- Prepayment or foreclosure may reduce interest burden
- Different banks may offer different EMI schedules
