What is an EMI Calculator?
An EMI Calculator is an online tool that instantly shows the monthly payment (EMI) you must pay for a loan based on your loan amount, interest rate, and tenure. It helps you estimate the total borrowing cost and plan repayments before applying for a loan.
EMI Formula
The standard mathematical formula used to calculate EMI is:
EMI = [P × R × (1 + R)N] / [(1 + R)N – 1]
- P – Loan amount (Principal)
- R – Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
- N – Loan tenure in months
How to Use This EMI Calculator
- Enter the loan amount you want to borrow.
- Select the interest rate offered by the lender.
- Choose the repayment tenure.
- The calculator instantly displays your EMI, total interest, and total repayment.
Why Use an EMI Calculator?
- Shows the exact EMI instantly without manual calculations.
- Helps compare multiple loan plans easily.
- Eliminates errors in interest and EMI calculation.
- Ensures your EMI fits your income and budget.
Factors That Affect Your EMI
- Loan Amount: Higher amount results in a higher EMI.
- Interest Rate: Even a small increase changes the EMI significantly.
- Tenure: Longer tenure reduces EMI but increases total interest payable.
- Loan Type: Secured and unsecured loans have different interest structures.
Types of EMI Calculators
- Personal Loan EMI Calculator
- Home Loan EMI Calculator
- Car Loan EMI Calculator
- Education Loan EMI Calculator
- Loan Against Property EMI Calculator
What Happens If You Miss EMIs?
- Late payment penalties are applied.
- Your credit score may drop.
- Total interest payable increases.
- For secured loans, the lender may initiate recovery actions.