EMI Calculator
Calculate your loan EMI with principal and interest breakdown
About EMI Calculator
The EMI Calculator is a financial tool that helps you calculate your monthly loan payments (EMI - Equated Monthly Installment) for various types of loans including home loans, car loans, personal loans, and more. It provides a detailed breakdown of your payments, showing how much goes toward the principal and how much toward interest.
Key Features:
- Accurate Calculations: Precise EMI calculations based on principal amount, interest rate, and loan tenure
- Flexible Tenure: Calculate EMI for both monthly and yearly loan terms
- Visual Representation: Pie chart showing principal vs. interest distribution
- Detailed Schedule: Year-by-year and month-by-month payment breakdown
- Mobile Friendly: Works perfectly on smartphones and tablets
- Privacy Focused: All calculations happen in your browser - no data is sent to servers
How to Use:
- Enter the loan amount you wish to borrow
- Input the annual interest rate offered by your bank
- Select the loan tenure in years or months
- Click "Calculate EMI" to see your monthly payment amount
- Review the payment schedule to understand how your loan will amortize over time
Understanding EMI:
EMI stands for Equated Monthly Installment. It's the fixed payment amount a borrower pays 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.
In the early years of your loan, a larger portion of each payment is applied toward interest. As you pay down the principal over time, more of your payment goes toward reducing the principal balance.
Frequently Asked Questions
Find answers to common questions about EMI calculations
EMI stands for Equated Monthly Installment. It's the fixed payment amount you pay each month toward your loan. The EMI is calculated using the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is the principal loan amount, R is the monthly interest rate (annual rate divided by 12), and N is the number of monthly installments.
The interest rate directly affects your EMI amount. A higher interest rate means you'll pay more each month (or pay for a longer period for the same EMI amount). Even a small difference in interest rates can significantly impact your total repayment amount over the life of the loan.
This depends on your financial situation. A shorter tenure means you'll pay less total interest but have higher monthly payments. A longer tenure reduces your monthly burden but increases total interest paid. Ideally, choose the shortest tenure you can comfortably afford.
Most loans allow prepayment, though some may charge a prepayment penalty. Prepaying reduces your principal, which can either reduce your EMI amount (if you keep the same tenure) or shorten your loan term (if you keep paying the same EMI). Use our calculator to see how prepayments affect your loan.
Flat rate calculates interest on the full loan amount throughout the tenure. Reducing balance calculates interest only on the outstanding principal, so you pay less interest as you repay. Most modern loans use reducing balance method. Our calculator uses reducing balance method.
Our calculator provides highly accurate estimates based on standard EMI calculation formulas. However, your actual EMI may vary slightly depending on the bank's specific rounding policies and any additional charges. Always confirm with your lender for exact figures.
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