EMI Calculator
Use this EMI Calculator to determine your monthly installment (EMI) for a loan based on the principal loan amount, interest rate, and loan tenure.
How to Use this EMI Calculator
Follow these steps to calculate your EMI:
- Loan Amount (INR): Enter the principal loan amount you intend to borrow, such as ₹10,000 or ₹1,00,000.
- Rate of Interest (per annum): Input the annual interest rate. For example, if the interest rate is 8%, enter 8.
- Loan Tenure (Years): Specify the loan term in years, such as 5 years or 10 years.
Once you’ve entered these details, click "Calculate EMI" to see your results:
- Monthly EMI: The fixed monthly amount you need to pay.
- Principal Amount: The total loan amount you borrowed.
- Total Interest: The total interest you’ll pay over the loan tenure.
- Total Amount: The combined principal and interest amount for the full loan term.
EMI Calculation Formula
The EMI for a loan is calculated using the following formula:
EMI = (P × r × (1 + r)^n) / ((1 + r)^n - 1)
Where:
- P is the loan amount (principal),
- r is the monthly interest rate (annual rate divided by 12),
- n is the total number of EMIs (loan tenure in years multiplied by 12).
Example Calculation
Suppose you take a loan of ₹5,00,000 at an annual interest rate of 10% for a tenure of 5 years.
- Convert the Annual Interest Rate to Monthly: 10% / 12 = 0.833% per month.
- Total Number of EMIs: 5 years × 12 = 60.
- Calculate the EMI using the formula above. After calculating, the monthly EMI would be approximately ₹10,624. Over 5 years, you’ll pay ₹6,37,440 in total, with ₹1,37,440 as interest.