EMI CALCULATOR
EMI
Total Loan Amount
Rs. 0
EMI per Month
Rs. 0
Total Interest Payable
Rs. 0
What is Equated Monthly Installment (EMI)?
An Equated Monthly Installment (EMI) is a consistent monthly payment that a borrower makes to pay off a loan, often associated with home loans, car loans, or personal loans. This payment includes both the principal and the interest, ensuring that the loan is completely paid off over a set period. The amount of the EMI is influenced by several factors, including the loan amount, interest rate, duration, and any grace period. In the case of fixed-interest loans, the EMI stays the same throughout the loan term, with the early payments consisting of a larger interest portion that gradually decreases, while the principal portion increases over time. EMIs offer borrowers a structured and manageable approach to loan repayment.
What is the Loan EMI( Equated Monthly Installments) Calculator?
An EMI Calculator is an easy-to-use online tool that is used to calculate your Equated Monthly Installments for loans. This calculator will let you plan a home loan or car loan or personal loan in no time, knowing how much you would approximately have to repay every month, based on the loan amount, interest rate, and loan tenure.
What is the formula for EMI, and how does it work?
EMI = [P × R × (1 + R)N] / [(1 + R)N – 1]
where:
- P is the loan amount (principal)
- R is the monthly interest rate
- N is the loan tenure in months
Let's try to understand how Loan EMIs work with an example. Suppose you take a loan from any financial institution or any other loan provider source of Rs. 1,00,000 at an annual (yearly) interest rate of 12% for a tenure of 1 year.
We have,
Principal Amount: Rs. 1,00,000
Interest Rate: 12%
Loan Tenure: 1 year (12 months)
To calculate your EMI, you can use the above formula:
EMI = [P × R × (1 + R)N] / [(1 + R)N – 1]
For our example:
- Principal (P) = Rs. 1,00,000
- Monthly Interest Rate (R) = Annual Interest Rate ÷ 12 = 12% ÷ 12 = 1% = 0.01
- Number of Monthly Installments (N) = 12 months
Substituting the values into the formula:
EMI = [1,00,000 × 0.01 × (1 + 0.01)12] / [(1 + 0.01)12 – 1]
EMI = [1,000 × (1.01)12] / [(1.01)12 – 1]
EMI = [1,000 × 1.126825] / [1.126825 – 1]
EMI = 1,126.83 / 0.126825
EMI ≈ Rs. 8,883.05
So, the monthly EMI for this loan would be approximately Rs. 8,883.
Types of EMI Calculators
- Home Loan EMI Calculator: Calculate monthly installments for purchasing or renovating a house.Example: If you take a loan of NPR 50,00,000 at 8% interest for 20 years, the EMI will be approximately NPR 41,822.
- Personal Loan EMI Calculator: Useful for short-term loans taken for personal expenses, like weddings or vacations.Example: A loan of NPR 5,00,000 at 12% interest for 5 years will have an EMI of about NPR 11,122.
- Car Loan EMI Calculator: Helps you plan repayments for new or used car loans with flexible tenures.Example: For a car loan of NPR 20,00,000 at 9% interest for 7 years, the EMI would be around NPR 31,669.
- Education Loan EMI Calculator: Designed for loans taken to cover educational expenses, including tuition fees and study materials.Example: A loan of NPR 10,00,000 at 10% interest for 10 years results in an EMI of about NPR 13,215.
- Business Loan EMI Calculator: Ideal for calculating repayment schedules for loans to expand or manage business operations.Example: For a business loan of NPR 30,00,000 at 15% interest for 5 years, the EMI will be approximately NPR 71,542.
How to Use the Loan EMI Calculator
- Enter the loan amount.
- Choose the interest rate and tenure.
- Click "Calculate" to view EMI, total interest, and payment breakdown.