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Calculate NowUnderstanding EMI (Equated Monthly Installment)
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar 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 along with interest.
Why Use Our EMI Calculator?
- Accurate Planning: Know exactly how much you need to pay each month before taking a loan
- Budget Management: Plan your monthly budget effectively by understanding your EMI obligations
- Loan Comparison: Compare different loan offers and choose the most suitable one
- Amortization Schedule: See how much of your payment goes towards principal vs interest
- Prepayment Planning: Understand the impact of making extra payments on your loan
Types of Loans You Can Calculate
Home Loans
Calculate EMI for home purchases, construction, and home improvement loans with competitive interest rates.
Personal Loans
Plan your personal loan EMI for various purposes like medical emergencies, education, or debt consolidation.
Business Loans
Calculate EMI for business expansion, working capital, equipment purchase, and other business needs.
Vehicle Loans
Plan your car loan or two-wheeler loan EMI with flexible tenure options.
EMI Calculation Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where: P = Principal amount, r = Monthly interest rate, n = Number of months
Factors Affecting EMI
- Principal Amount: The higher the loan amount, the higher the EMI
- Interest Rate: Lower interest rates result in lower EMIs
- Loan Tenure: Longer tenure means lower EMI but higher total interest
- Processing Fees: One-time charges that may be added to the principal
- Prepayment Charges: Additional costs for early loan closure
EMI Planning Tips
- Keep your EMI to income ratio below 40% for comfortable repayment
- Consider prepayment options to reduce total interest burden
- Choose flexible EMI options like step-up or step-down EMIs if available
- Factor in other financial obligations before finalizing loan amount
- Use our calculator to experiment with different loan amounts and tenures