## EMI Calculator for Home Loan, Personal Loan, Education Loan and Car Loan

The credit market in all over the world is steadily on the rise. Due to the rise in number of people purchasing loans, I have made a highly useful ** EMI Calculator** that helps you to
calculate your monthly EMI installments in a more efficient way. You can use this online tool to calculate your Personal Loan EMI, Home Loan EMI, Education Loan EMI, and Car Loan EMI

It is one of the most accurate EMI Calculator available online which can help you to manage your finance if you are planning to apply for a personal Loan or any other kind of loan. While playing around this calculator, you can figure out the most accurate EMI plan according to your needs.

## What is an EMI?

EMI stands for "Equated Monthly Installments". It it the amount that the borrower has to pay equally every month throughout the tenure of the loan such that the loan balance at the end of the tenure of the loan becomes zero. Also assuming, that the borrower wouldn't make any prepayments during the course of the loan.

So, how is this EMI amount arrived at?

There is a slightly complex mathematical formula involved in the calculation of EMI amount. The formula to calculate EMI is given below:

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

**P stands for the loan amount or principle amount*

**R is the rate of interest per month. If the interest rate per annum is 10%, then the rate of interest per
month will be 10% divided by 12 = (10 / 100) / 12*

**N is the number of monthly installments.*

The above formula gives you the amount which needs to be paid equally every month so that your loan gets over at the end of the tenure of the loan. (Assuming you wouldn't make any prepayments during the course of the loan.

Let's understand with an example - Your loan amount is 25,00,000, rate of interest applied is 10% and tenure of the loan is 10 years. So,

**P = 25,000,00*

**R = Rate of interest per month = (Annual Interest ) divided by 12*

*= (10/100) divided by 12*

**N = 120 months (In the formula N is the number of months. So, 10 years mean 120 months)*

*Applying the above formula, your EMI will cost 33,038 / month.*

### How can an EMI Calculator helps you in planning your Finance?

This online EMI Calculator calculates the exact amount that needs to be paid by you to the lender. A longer tenure (maximum duration) helps you in reducing the EMI amount. It can do complex calculations within a few seconds, and helps you make a quick decision about the LOAN. The calculations are totally accurate and trustworthy. It is important to use an EMI calculator before applying for a LOAN, this way you will be in a better position to understand your debt repayments without missing your EMIs payment which could lead to a poor credit score. You can experiment with the calculator by using different amount, tenure period, prepayment amount (if any).

Traditionally you would have used a Pen-and-Paper for the calculations, but this approach is time consuming and leave a plenty of room for errors. But our Online EMI Calculator generates accurate results with an span of seconds. It uses an EMI-formula algorithm to fetch the error-free result in seconds, irrespective of loan requirement. Besides, this is a free of cost and easy-to-use tool. All you have to do is enter the Loan Amount, Interest Rate and the Loan Duration period to fetch your EMI. You can also set prepayment (if any), different payment plan, scheduled payment amount to generate a customised EMI.

The result will be shown in both tabular and graphical layout format which make it easier for you to understand the monthly EMI balance, interest payment and your EMI duration. While using the calculator, you can change any parameter values defined in the calculator as many times as you wish. In case your calculated EMI amount is out of the range, either increase the loan tenure or decrease the principal amount. But keep in mind, the longer your tenure, the more interest you will have to pay. So adjust values accordingly to manage your finace efficiently with our Loan Calculator and Financial Planner Tool.

#### Frequently Asked Questions

##### When will the EMI starts from the date of purchasing the Loan?

You Monthy EMI starts from the very subsequent month from the date of disbursement of a LOAN. Suppose you have purchased a Loan of 10000 at interest rate of 6% on 20st of January, your first EMI is due for the 21st February. Most of the banks notify their customers every month before the due date is about to reach. However, by any reason if you miss or skip your monthly payment, your loan tenure would increase and could also impact your CIBIL score.

##### What happens in case of Floating interest rates?

Depening upon the type of finance, whether it is a fixed rate during the tenure of the loan or floating interest rate your loan calculated EMI varies. In most of the banks, interest rates often change every financial year. So, if your bank has reduced interest rate for that year, which means that you pay a lesser interest amount and which ultimately bring down the overall payment of your finance. Similarly, the rise in interest rate will increase your overall loan amount.

##### What are the factors that affect EMI Amount?

- Higher LOAN amount mean more monthly installments and higher EMI amounts.
- Rate of interest at which the banks lends you the money for a certain duration directly affects your monthly installments. Higher interest rate means increase in payment.
- Loan Duration is inversely proportional to your EMIs. A longer duration reduces monthly installments while a shorter duration increase them. However, a longer duration means your total amount to be paid will be increased.