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EMI Calculator - Calculate Your Loan EMI

Calculate monthly EMI for any loan amount. Get detailed breakup of principal and interest with amortization schedule and prepayment analysis.

Loan Details

₹1L ₹10Cr
Minimum ₹1 Lakh, Maximum ₹10 Crore
5% 25%
Annual interest rate charged by lender
1 Year 30 Years
Total loan repayment period
Enter number of prepayments you plan to make

Your EMI Details

Monthly EMI
₹41,832
Principal Amount
₹50,00,000
Total Interest
₹50,39,680
Total Payment
₹1,00,39,680

Your Amortization Details (Yearly/Monthly)

Related Calculators

EMI Tips

  • Compare interest rates from multiple lenders
  • Choose optimal tenure based on your budget
  • Make prepayments to reduce interest burden
  • Maintain good credit score for better rates
  • Consider floating vs fixed rate options
  • Factor in processing fees and charges

Understanding EMI (Equated Monthly Installment)

EMI is the fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is fully paid off.

How is EMI Calculated?

EMI calculation is based on three key factors: the loan amount (principal), the interest rate, and the loan tenure. The EMI amount remains fixed throughout the loan tenure, but the proportion of principal and interest components changes over time.

EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where:
P = Principal loan amount
r = Monthly interest rate (Annual rate / 12 / 100)
n = Total number of monthly installments

Components of EMI

Each EMI payment consists of two parts:

  • Principal Component: The portion that goes towards reducing the outstanding loan amount
  • Interest Component: The portion that goes towards paying the interest charged by the lender

In the initial years, the interest component is higher, and gradually the principal component increases as the outstanding loan amount decreases.

Benefits of Prepayment

Making prepayments towards your loan can significantly reduce the total interest paid and loan tenure. Our calculator helps you analyze the impact of different prepayment scenarios on your loan.

Frequently Asked Questions about EMI

How is EMI calculated?

EMI is calculated using the formula: P × r × (1 + r)^n / ((1 + r)^n - 1), where P is principal, r is monthly interest rate, and n is the number of monthly installments.

Should I choose a longer or shorter loan tenure?

Longer tenure reduces EMI but increases total interest paid. Shorter tenure increases EMI but reduces total interest. Choose based on your monthly budget and total cost comfort.

Can I prepay my loan to save interest?

Yes, most loans allow prepayment. Prepayments reduce the outstanding principal, which in turn reduces the total interest burden and can shorten the loan tenure.

Fixed vs Floating interest rate - which is better?

Fixed rates remain constant throughout the loan tenure, providing payment predictability. Floating rates vary with market conditions and can benefit from rate cuts but also risk rate increases.

What factors affect my EMI amount?

EMI is primarily affected by loan amount, interest rate, and tenure. Higher loan amounts and interest rates increase EMI, while longer tenure reduces EMI but increases total interest.

Can I change my EMI during the loan tenure?

EMI amount is generally fixed, but you can make prepayments, request tenure extension, or refinance your loan to change the EMI structure based on your lender's policies.

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