EMI Calculator

💳 What is EMI?

Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMI is used to pay off both interest and principal each month over the loan tenure.

🧮 Formula Used

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

Where:

• P = Principal loan amount
• r = Monthly interest rate (annual rate / 12 / 100)
• n = Loan tenure in months

💡 Example

For a home loan of ₹10,00,000 at 8.5% annual interest for 20 years:

• Monthly EMI: ₹8,678
• Total Interest: ₹10,82,655
• Total Amount Payable: ₹20,82,655

You pay approximately double the loan amount over 20 years!

📋 Tips for Better Loan Management

• Higher down payment: Reduces loan amount and EMI
• Shorter tenure: Saves on total interest paid
• Lower interest rate: Shop around for best rates
• Prepayments: Part-payments can significantly reduce interest burden