|Year||Principal (A)||Interest(B)||Total payment (A+B)||Balance||Loan Paid
Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e number of months, in which the loan has to be repaid. This amount has to be
P = Principal loan amount
N = Loan tenure in months
R = Monthly interest rate
The rate of interest (R) on your loan is calculated per month.
R = Annual Rate of interest/12/100
If rate of interest is 7.2% p.a. then r = 7.2/12/100 = 0.006
For example, if you borrow ₹10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = ₹10,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 - 1) = ₹13,493. i.e., you will have to pay ₹13,493 for 120 months to repay the entire loan amount. The total amount payable will be ₹13,493 * 120 = ₹16,19,220 that includes ₹6,19,220 as interest toward the loan.Computing EMI for different combinations of principal loan amount, interest rates and loan term using the above EMI formula by hand or MS Excel is time consuming, complex and error prone. Our EMI calculator automates this calculation for you and gives you the result in a split second along with visual charts displaying payment schedule and the break-up of total payment.
With colourful charts and instant results, our EMI Calculator is easy to use, intuitive to understand and is quick to perform. You can calculate EMI for home loan, car loan, personal loan, education loan or any other fully amortizing loan using this calculator.
Enter the following information in the EMI Calculator:.
Principal loan amount you wish to avail (rupees)
.EMI in arrears OR EMI in advance (for car loan only)
Use the slider to adjust the values in the EMI calculator form. If you need to enter more precise values, you can type the values directly in the relevant boxes provided above. As soon as the values are changed using the slider (or hit the 'tab' key after entering the values directly in the input fields), EMI calculator will re-calculate your monthly payment (EMI) amount.
A pie chart depicting the break-up of total payment (i.e., total principal vs. total interest payable) is also displayed. It displays the percentage of total interest versus principal amount in the sum total of all payments made against the loan. The payment schedule table showing payments made every month / year for the entire loan duration is displayed along with a chart showing interest and principal components paid each year. A portion of each payment is for the interest while the remaining amount is applied towards the principal balance. During initial loan period, a large portion of each payment is devoted to interest. With passage of time, larger portions pay down the principal. The payment schedule also shows the intermediate outstanding balance for each year which will be carried over to the next year.
We suggest that you calculate floating / variable rate EMI by taking into consideration two opposite scenarios, i.e., optimistic (deflationary) and pessimistic (inflationary) scenario. Loan amount and loan tenure, two components required to calculate the EMI are under your control; i.e., you are going to decide how much loan you have to borrow and how long your loan tenure should be. But interest rate is decided by the banks & HFCs based on rates and policies set by RBI. As a borrower, you should consider the two extreme possibilities of increase and decrease in the rate of interest and calculate your EMI under these two conditions. Such calculation will help you decide how much EMI is affordable, how long your loan tenure should be and how much you should borrow.
Optimistic (deflationary) scenario: Assume that the rate of interest comes down by 1% - 3% from the present rate.
Consider this situation and calculate your EMI. In this situation, your EMI will come down or you may opt to shorten
the loan tenure. Ex: If you avail home loan to purchase a house as an investment, then optimistic scenario enables
you to compare this with other investment opportunities.Pessimistic (inflationary) scenario: In the same way, assume that the rate of interest is hiked by 1% - 3%. Is it possible for you to continue to pay the EMI without much struggle? Even a 2% increase in rate of interest can result in significant rise in your monthly payment for the entire loan tenure.
Such calculation helps you to plan for such future possibilities. When you take a loan, you are making a financial commitment for next few months, years or decades. So consider the best as well as worst cases...and be ready for both. In short, hope for the best but be prepared for the worst!
Home Loan EMI Calculator prepayments taxes
Download Free app from play store
Calculator EMI,Affordability Tenure& Interest Rate
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Hi, very nice application Kindly suggest how do we calculate emi in case one person pays the 15 full emi but then for few months only pays interest amount.how do we calculate future emi's including for non principal payments towards loan. Thanks
During availing loan facility from any bank…they charge processing fee also…then final loan amount will be excluding or including processing fee..and how would we consider this processing fee during emi calculation
Why can’t it calculate above the amount 300 Cr
Hi this is very helpful tool , one small improvement the detailed grid can you also add new column of principal to interest percent it would would be grow
september20,2022 at 9:13Am
Thank you for sharing this calculator – It is very helpful. Could you please explain what is the “EMI in Arrears” vs. “EMI in Advance” options for car loan?
september21,2022 at 5:52pm
You can get more information in this post.
August26,2022 at 4:47pm
Calculator failed for the input as
Tenure: 0.75 month
Unexpected emi amount: 1,34,111 while interest is only 583
december30,2022 at 2:25pm
August27,2022 at 6:02pm
We have now modified the calculator to not accept decimals when tenure is entered in ‘months’. Thanks for the feedback, Aman.