EMI Calculator
Calculate your monthly EMI for Home Loan, Car Loan, or Personal Loan. Plan your repayments with our easy-to-use EMI Calculator.
Loan Details
EMI Breakdown
Monthly EMI
₹0
How to use the EMI Calculator?
Enter the following details in the EMI Calculator:
- Principal Loan Amount: The amount you wish to borrow.
- Loan Tenure: The time period over which you want to repay the loan.
- Interest Rate: The interest rate offered by the bank or financial institution.
Factors Affecting EMI
- Loan Amount: Higher loan amount leads to higher EMI.
- Interest Rate: Higher rate increases the EMI.
- Tenure: Longer tenure reduces monthly EMI but increases total interest paid.
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Installment) is a fixed monthly payment made to a lender to repay a loan. It consists of two components: Principal repayment and Interest payment.
How to calculate EMI?
The mathematical formula for EMI is E = P x R x (1+R)^N / [(1+R)^N-1], where P = Principal, R = Monthly Interest Rate, and N = Tenure in months.
Does EMI change during the loan tenure?
For fixed-rate loans, EMI remains constant. For floating-rate loans, the EMI or tenure may change if the repo rate (benchmark rate) changes.
What factors affect my EMI?
The three main factors are Loan Amount (P), Interest Rate (R), and Tenure (N). Processing fees and prepayments also impact the overall cost but not the standard EMI formula.
Is a short tenure better or a long one?
A short tenure means higher EMI but lower total interest payout. A long tenure reduces your monthly EMI burden but drastically increases the total interest paid over time.
Can I pay more than the EMI amount?
Yes, making partial prepayments reduces the outstanding principal. This can either reduce your future EMI amount or shorten the loan tenure.
What happens if I miss an EMI payment?
Missing an EMI attracts late payment charges, penal interest, and negatively impacts your Credit Score (CIBIL). Consistent defaults can lead to legal action or asset seizure.
Is the processing fee included in the EMI?
No. The processing fee is a one-time charge taken by the bank when the loan is sanctioned. It is usually 0.5% to 2% of the loan amount.
What is a 'Moratorium Period'?
A moratorium is a timeframe during which you don't have to pay EMIs (e.g., for education loans). However, interest keeps accumulating during this break.
How can I reduce my loan EMI?
You can reduce EMI by making a large down payment (for home/car loans), opting for a longer tenure, or negotiating a lower interest rate with the lender.