EMI Calculator
Calculation Summary
Monthly EMI
₹0.00
Total Interest Paid
₹0.00
Total Payment
₹0.00
Cost Breakdown
Calculate EMI to see breakdown.
Loan Amortization
Calculate EMI to see amortization.
| Month | Payment (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|---|
| No data available. Calculate EMI first. | ||||
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Understanding the EMI Calculation
This Calculator uses the standard formula for calculating Equated Monthly Instalments (EMI) for loans compounded monthly. Understanding this method is key to smart borrowing.
The EMI Formula
The EMI is derived using the following mathematical formula:
$$ \text{EMI} = P \times r \times \frac{(1 + r)^n}{(1 + r)^n - 1} $$
- $$ P $$: Principal Loan Amount (The amount you borrow).
- $$ r $$: Monthly Interest Rate (Calculated as Annual Rate / 12 / 100). If Annual Rate is 0, r is 0.
- $$ n $$: Total Tenure in Months (Years $\times$ 12, or months directly).
Note: If the interest rate (r) is 0, the formula simplifies to EMI = P / n.
Amortization Schedule
The calculator also generates an Amortization Schedule, which details how much of each EMI payment goes toward the Principal and how much goes toward the Interest over the life of the loan. Initially, more of the payment covers interest, gradually shifting towards paying down the principal.
Key Financial Terms
- Monthly EMI: The fixed amount paid monthly.
- Total Interest Paid: The cumulative interest paid over the loan tenure. This represents the cost of borrowing.
- Total Payment: The sum of the Principal Loan Amount and the Total Interest Paid.