EMI Calculator
Calculate your monthly EMI, total interest payable and total loan amount.
EMI Calculator – Loan EMI Calculator
An EMI Calculator helps you estimate the Equated Monthly Instalment (EMI) payable on a loan based on the loan amount, interest rate, and repayment tenure.
EMIs are fixed monthly payments made towards loan repayment, consisting of both principal and interest components. This calculator helps borrowers plan their finances better before taking a home loan, personal loan, car loan, or any other term loan.
What Is an EMI Calculator?
An EMI Calculator is an online financial tool that calculates:
- Monthly EMI amount
- Total interest payable over the loan tenure
- Total amount payable (principal + interest)
This calculator provides quick estimates based on standard EMI formulas commonly used by banks and financial institutions in India.
How Does the EMI Calculator Work?
The EMI Calculator uses the following inputs:
- Loan amount
- Annual interest rate
- Loan tenure (in years or months)
Based on these inputs, it applies a standard reducing-balance EMI formula to calculate the monthly instalment and total repayment amount.
EMI Calculation Example
Let’s understand how EMI is calculated using a simple loan example.
- Loan Amount: ₹10,00,000
- Interest Rate: 9% per annum
- Loan Tenure: 5 years
Monthly EMI: ₹20,758 (approx.)
Total Interest Payable: ₹2,45,500 (approx.)
Total Amount Payable: ₹12,45,500 (approx.)
Result: The EMI Calculator helps you understand the monthly repayment burden and total loan cost before applying for a loan.
Frequently Asked Questions (FAQs)
What is EMI?
EMI stands for Equated Monthly Instalment. It is a fixed monthly payment made by a borrower to repay a loan over a specified period.
What factors affect EMI amount?
EMI depends on the loan amount, interest rate, and loan tenure. Higher loan amount or interest rate increases EMI, while a longer tenure reduces it.
Is EMI calculated on a reducing balance?
Yes. Most banks calculate EMI using the reducing balance method, where interest is charged on the outstanding loan amount.
Can EMI amount change during the loan tenure?
EMI may change if the interest rate is floating or if the lender revises loan terms. Fixed-rate loans usually have a constant EMI.
Does the EMI Calculator include processing fees?
No. The EMI Calculator does not include processing fees, prepayment charges, or other loan-related costs.
Is this EMI Calculator accurate?
The calculator provides close estimates based on standard formulas. Actual EMI may vary slightly depending on lender-specific calculations.