What is EMI?
Equated Monthly installment, or EMI for short, is the amount owed to the bank or other financial institution each month until the loan is paid off in full. It includes both the loan's interest and a part of the principal that needs to be paid back. By dividing the sum of the principal and interest, you can figure out how many months it will take to pay back the loan. This amount needs to be paid off each month. At first, the interest part of the EMI would be bigger, but it would get smaller with each payment after that. The interest rate determines how much of the payment goes toward paying off the loan's principal. The amount of principal and interest you pay each month won't change, but it will change over time. With each payment, you'll put more money toward the principal and less toward the interest.
Using the above EMI formula by hand or in MS Excel to figure out EMI for different combinations of principal loan amount, interest rate, and length of loan takes time, is hard, and can lead to mistakes. With the help of our EMI calculator, you can automate this calculation and get the results right away, along with graphs showing the total payment breakdown and the payment schedule.
How do you use the EMI Calculator?
Our EMI Calculator is quick, easy to use, and easy to understand. With this calculator, you can figure out the EMI for a home loan, car loan, personal loan, education loan, or any other fully amortising loan.
Fill in the following into the EMI Calculator:
Principal loan amount you desire to avail (rupees)
Loan period (months or years)
Rates of interest (percentage)
Use the slider on the EMI calculator form to change the settings. If you need to give more accurate values, you can just type them in the spaces provided above. As soon as you change the settings with the slider, the EMI calculator will give you a new monthly payment amount (or after putting the values straight into the input fields by pressing the "tab" key).
There is also a pie chart that shows how the whole payment was made (total principle vs. total interest payable). As a percentage, the total of all loan payments shows the amount of interest paid compared to the amount of the loan. Along with a chart showing how much interest and principal are paid each year, a table showing how much is paid each month or year for the length of the loan is also shown. Each payment includes a part that goes toward the principal balance and a part that goes toward the interest. During the first part of the loan, interest is a big part of every payment. The payment plan also shows how much of each year's unpaid balance will be carried over to the next year.