EMI Calculator
Calculate your Equated Monthly Installment (EMI) for various types of loans like Home, Car, or Personal Loan.
Loan Summary
Monthly EMI:
₹0.00
Principal Amount:
₹0.00
Total Interest:
₹0.00
Total Amount Payable:
₹0.00
How EMI Works?
An EMI is a fixed amount paid by a borrower to a lender at a specified date each month. EMI payments are applied to both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
Formula used for EMI calculation is:
$$E = P \times r \times \frac{(1+r)^n}{((1+r)^n - 1)}$$
Where:
- E = Monthly EMI
- P = Principal Loan Amount
- r = Monthly interest rate (Annual Rate / 12 / 100)
- n = Loan tenure in months
Frequently Asked Questions (FAQs)
1. What factors affect the EMI?
EMIs are primarily determined by the principal loan amount, the interest rate offered by the bank, and the duration of the loan (tenure). Increasing the tenure reduces the EMI but increases the total interest paid.
2. Can I change my EMI in the middle of a loan?
Generally, EMIs stay fixed. However, if you make a part-payment (prepayment) or if you are on a floating interest rate that changes, your lender may allow you to reduce the EMI or the tenure.
3. What is the difference between fixed and floating rates?
In a fixed-rate loan, the EMI remains constant throughout the tenure. In a floating-rate loan, the interest rate changes based on market conditions, which can cause your EMI to increase or decrease over time.