EMI Calculator

Total Interest
Principal amount

Monthly EMI

Principal amount

Total Interest

Total amount

Managing loan repayments effectively is crucial for maintaining a healthy credit history. One valuable tool for borrowers is an EMI calculator, which provides a clear understanding of monthly installment obligations. Let’s explore the key aspects of an EMI calculator in detail.

What is an EMI Calculator?

An EMI calculator helps individuals determine their Equated Monthly Installments (EMIs) based on specific loan parameters. It takes into account three primary factors that affect EMIs:

  1. Principal Loan Amount (P): EMIs are directly proportional to the loan amount. Higher loan amounts result in larger monthly installments.
  2. Interest Rate (R): Lenders charge an interest rate on the principal amount. Higher interest rates lead to increased EMIs, while lower rates result in lower EMIs.
  3. Loan Tenure (N): This refers to the duration of the loan. A longer tenure decreases the monthly EMIs, while a shorter tenure increases them.

Understanding how an EMI calculator works is essential before utilizing this tool effectively.

How to use EMI Calculator ?

Here’s how you can calculate your loan EMI:

  1. Select the loan amount – Choose the amount you need with the help of slide bar
  2. Select the loan tenure – Use the slide bar to choose the loan tenure
  3. Select the interest rate – Move the slide bar to select the interest rate.

You will be able to view your loan EMI

What is an Online EMI Calculator?

An online EMI calculator is a convenient tool for accurately calculating loan EMIs. It allows borrowers to input the loan amount, tenure, and interest rate, which the calculator uses to compute the total interest payable, monthly EMI amount, and the outstanding loan balance at any given period.

To comprehend the calculator’s functionality, it’s important to have a basic understanding of EMI calculations.

Formula for Calculating EMIs

The formula to calculate EMIs using an EMI calculator is as follows:

EMI = [P x R x (1+R) ^N] / [(1+R) ^ N-1]

In the above formula, the three components that constitute the Equated Monthly Installments of a personal loan are denoted by P, R, and N:

EMIEquated Monthly Payment
PPrincipal amount
RRate of interest

Here’s an example to illustrate the formula’s application: Consider a loan amount of ₹10,00,000, an annual interest rate of 10.5%, and a loan tenure of 10 years (or 120 months). Calculating the monthly interest rate, R = Rate of Annual interest/12/100, we find R = 10.5/12/100 = 0.00875.

Using this information, the computed EMI will be ₹13,493. Thus, borrowers will need to pay ₹13,493 per month for 120 months to repay the entire loan amount. The total amount payable over the loan tenure will be ₹16,19,220, including ₹6,19,220 as interest.

Benefits of Using an EMI Calculator

Utilizing an EMI calculator offers several benefits for borrowers:

  1. Accurate Budget Planning: By calculating EMIs in advance, borrowers gain clarity on their exact monthly payment obligations. This enables them to plan their finances effectively and accommodate EMIs within their budget.
  2. Informed Decision-making: EMI calculators allow borrowers to experiment with different loan amounts, interest rates, and tenures. This empowers them to make informed decisions based on their financial capabilities and requirements.
  3. Credit Rating Maintenance: Calculating EMIs in advance helps borrowers manage their finances better, ensuring timely repayment and avoiding missed payments. This contributes to a positive credit rating.
  4. Time-saving and Error-free: EMI calculators perform complex calculations quickly and accurately, saving significant time. Manual calculations are prone to errors, but using a calculator eliminates the risk, providing precise results.
  5. Accessibility and Ease of Use: Online EMI calculators are readily available on various websites, and they are user-friendly. Borrowers can conveniently input the loan details to calculate their EMIs from any location at any time.

Once borrowers determine their required loan amount using an EMI calculator, it is important to understand the necessary documentation for obtaining the loan.

How can an online EMI calculator help you?

The number of credit accounts is growing at an even higher CAGR of 28% and has reached 107 million accounts at the end of FY18.

Regardless of the type of loan you want to avail of, be it a secured or unsecured advance, it is paramount that you know how much monthly instalment you have to make before you avail it. That is where an EMI calculator in India can be immensely helpful.

  • It helps you get an accurate estimate of your EMI amount so that you can plan your finances accordingly. Make sure that your debt-to-income ratio is below 50% to maximize your chances of loan approval.
  • loan EMI calculator helps you save valuable time. You don’t have to do complex calculations manually, which can be quite time-consuming.
  • It eliminates any chance of a miscalculation, providing you with an accurate estimate every time.
  • It is highly specific for each type of loan. The EMI breakup of a home loan, for example, is different from that of a personal loan.

Types Of EMI Calculator

There are numerous types of EMI Calculators that you can use on CashZeni to calculate your equated monthly installments for home loans, personal loans, car loans, etc.

Home Loan EMI Calculator

Home loans usually have a huge loan principal amount and a long tenure. It requires strategic planning for its repayment. You can use the Home Loan EMI Calculator of CashZeni to calculate your EMI. It is a user-friendly designed calculator that can help you calculate and assess your home loan EMIs immediately. All you need to do is enter your loan amount, loan tenure, and rate of interest and the results will be calculated instantly.

Car Loan EMI Calculator

Buying a car is one of the major investments one can make. You may require a car loan to fund this substantial investment. Often, a car loan’s EMI is supposed is to be repaid with due interest within a stipulated time to the lender. On failure, your car may be taken away and put up for auction to recover the balance amount left to be paid. Thus, to calculate a precise EMI amount that you can afford to pay comfortably, you can use the Car Loan EMI Calculator of CashZeni. You just need to enter your loan amount, interest rate, and loan tenure, and you will get the monthly EMI amount instantly.

Personal Loan EMI Calculator

Personal loans are mostly taken to serve multiple purposes like medical emergency, vacation, relocation, wedding, home renovation, etc. Since they are an unsecured loan, they have a relatively higher interest rate and a shorter tenure. You can use the Personal Loan EMI Calculator of CashZeni to assess the loan and EMI amount that you can pay with ease. By entering your loan amount, rate of interest, and loan tenure, you can calculate your EMI.

Education Loan EMI Calculator

Affording good education in recent times has been quite a task for parents as its cost has risen at a rapid pace. To finance this cost, an education loan is one of the best options a parent can opt for. Such loans can be taken for a student’s education within the country or even overseas. The loan’s EMI is required to be repaid with interest after a moratorium period. By entering the loan amount, rate of interest, and loan tenure in the Education Loan EMI Calculator, you can calculate the sum of the EMI amount which you need to repay.

Loan against Property EMI Calculator

A loan against property is a type of secured loan that one can avail against a property owned by them. Be it residential, commercial, or land, any property can be mortgaged with the lender against a loan. For calculating the EMI amount which you can repay without any financial strain, you can use a Loan against Property EMI Calculator.

Frequently Asked Questions

What is an EMI?

An EMI (Equated Monthly Installment) refers to the fixed amount that borrowers repay each month towards their loan, including both principal and interest components.

How is EMI calculated?

EMIs are calculated using a mathematical formula that takes into account the loan amount, interest rate, and loan tenure. An EMI calculator can provide accurate results instantly.

Can the EMI amount change during the loan tenure?

No, the EMI amount remains constant throughout the loan tenure unless there are specific terms and conditions mentioned in the loan agreement, such as a variable interest rate or a step-up/down repayment scheme.

What happens if I miss an EMI payment?

Missing an EMI payment can result in late payment fees and negatively impact your credit score. It is important to make EMI payments on time to avoid any penalties or adverse consequences.

Can I prepay my loan or make additional payments to reduce the EMI burden?

Yes, certain types of loans, such as home loans, offer tax benefits on the interest paid. These benefits are subject to specific conditions and limits, as per the prevailing tax laws of your country.

Can I use an EMI calculator for different types of loans?

Yes, an EMI calculator can be used for various types of loans, including personal loans, car loans, home loans, education loans, and more. The calculation may vary slightly based on the specific loan parameters.

Is the EMI amount the only cost associated with a loan?

No, apart from the EMI, borrowers may need to pay additional charges like processing fees, administrative fees, prepayment penalties (if applicable), and any other charges specified by the lender.

Can I change the loan tenure after taking the loan?

Typically, the loan tenure is fixed at the time of loan disbursal. However, some lenders may offer the option to restructure the loan tenure under certain circumstances. It is advisable to check with your lender regarding any such provisions.

How accurate are the results provided by an EMI calculator?

EMI calculators provide highly accurate results based on the loan parameters entered. However, it is important to note that the actual loan terms and conditions may vary depending on the lender’s policies and approval process.