EMI Calculator
Result
EMI Calculator: What It Is and How It Works
An EMI Calculator is a financial tool that helps you calculate the Equated Monthly Installment (EMI) you need to pay for a loan. It determines the fixed monthly payment required to repay a loan over a specified period, considering the loan amount, interest rate, and loan tenure.
How an EMI Calculator Works
1. User Input
The user enters the following details:
- Loan Amount – The total amount borrowed
- Interest Rate – The annual interest rate charged by the lender
- Loan Tenure – The repayment period (in months or years)
2. Calculation Formula
The EMI is calculated using the standard formula:
EMI = [P × r × (1 + r)n] / [(1 + r)n - 1]
where:
- EMI = Monthly payment
- P = Loan amount (Principal)
- r = Monthly interest rate = Annual interest rate ÷ 12 ÷ 100
- n = Number of months (Loan tenure in months)
3. Display Result
The calculator shows:
- Monthly EMI amount
- Total payment (Principal + Interest)
- Total interest payable over loan tenure
Example Calculation
If you take a loan of ₹1,00,000 at an interest rate of 10% per annum for 5 years (60 months):
- Monthly interest rate = 10 ÷ (12 × 100) = 0.00833
- EMI Calculation = [100,000 × 0.00833 × (1 + 0.00833)60] ÷ [(1 + 0.00833)60 - 1]
- Result ≈ ₹2,125.89 per month
Benefits of an EMI Calculator
✅ Quick and accurate results
Get instant calculations without manual errors
✅ Financial planning
Plan your budget with precise payment amounts
✅ Loan comparison
Compare different loan options easily
An EMI calculator is a powerful tool that helps you make informed financial decisions, ensuring that your loan payments fit within your budget! 💰