EMI Calculator

Do Hassle Free EMI calculations

Loan Amount

Rate of Interest (p.a.)

%

Loan Tenure

Yr

EMI Amount₹19,566
Loan Amount₹1,000,000
Total Interest₹173,969
Total Payment₹1,173,969

What is EMI?

EMI, or Equated Monthly Instalment, is a fixed monthly payment to a financial institution when borrowing money. It comprises two components: one for interest repayment and one for principal repayment. In the initial years of a loan, a significant portion of the EMI goes toward interest. This proportion gradually decreases with each payment. The interest amount depends on the interest rate, while the principal repayment reduces the outstanding loan amount. EMI remains constant throughout the loan tenure.

What is EMI Calculator?

An EMI calculator is a convenient online financial tool for estimating the monthly EMI for a loan. It simplifies determining the monthly commitment required to repay a loan over its duration.
To calculate EMI, input the loan amount, interest rate, and loan term into the EMI calculator. It computes your monthly instalment, total repayment amount, and interest paid during the loan tenure.
This tool is helpful for various loan types, including consumer durable loans, home loans, auto loans, personal loans, and student loans.

EMI Formula

The EMI formula is as follows:

EMI = P x R x (1+R)^N / [(1+R) ^ (N-1)]

Where:

P: Principal amount borrowed

R: Monthly interest rate (e.g., if the annual interest rate is 10%, the monthly interest is 10% / 12 or 0.8333%).

N: Loan period in months.

Example

Borrowing ₹1,00,000 at a 10% annual interest rate for 12 months:

P: ₹1,00,000

R: 0.8333% (10% / 12)

N: 12

EMI Calculation: [1,00,000 x 0.008333 x (1+0.008333)^12] / [(1+0.008333) ^ (12-1)]

Result: Monthly EMI of approximately ₹8,792.49, with a total payment of around ₹1,05,509.88 over 12 months and interest of about ₹5,509.88.

How an EMI Calculator Can Help You

An EMI calculator has several applications:

Budgeting: Plan your budget by knowing the exact monthly payment for a loan, enabling effective expense management.

Comparing Loans: Compare EMI amounts for loans with different interest rates to choose the right loan for your financial situation.

Interest Rate Impact:See how interest rates affect monthly payments to decide on loan size and term.

Tenure Options:Experiment with various loan tenures to select a repayment strategy aligned with your financial goals.

Calcya EMI Calculator assists in financial management, decision-making, and budget planning, enabling informed choices regarding loans and their financial impact.

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