| Monthly EMI | |
| Principal Amount | |
| Total Interest | |
| Total Amount |
The credit market in India is steadily growing and is currently one of the largest in the world. A significant portion of this growth comes from short-term credit products such as personal loans and credit cards. Together, these account for a major share of total lending in the country. Loan repayments are made through Equated Monthly Installments (EMIs), and understanding your EMI amount is essential for planning your current and future finances.
An online EMI calculator helps you determine the exact installment amount you are required to pay before applying for a loan. It allows you to make informed financial decisions without manual calculations.
Before applying for a loan, consider the following factors that directly affect your EMI:
The loan tenure determines how long you will repay the loan. A longer tenure reduces your monthly EMI but increases the total interest paid. A shorter tenure increases EMI but reduces overall interest cost.
Interest rate plays a crucial role in determining your EMI. Even a small difference in rate can significantly affect the total repayment amount. Comparing interest rates helps keep your repayment burden lower.
The principal amount you borrow directly impacts your EMI. A higher loan amount results in a higher EMI and total repayment amount.
Whether you are applying for a secured or unsecured loan, knowing your monthly obligation in advance ensures better financial planning.
The standard EMI formula used by financial institutions is:
EMI = [P × R × (1+R)N] / [(1+R)N − 1]
Where:
Home loans typically involve large loan amounts and long repayment tenures. A home loan EMI calculator helps you estimate monthly payments and plan your finances effectively.
Car loans finance vehicle purchases and are repaid with interest over a fixed tenure. Calculating your EMI beforehand ensures you choose a repayment plan that suits your budget.
Personal loans are unsecured and often carry higher interest rates. An EMI calculator helps you assess affordability before applying.
Education loans support higher studies within India or abroad. EMI repayment usually begins after a moratorium period. Use the calculator to understand your future repayment obligation.
A loan against property is a secured loan taken against residential or commercial property. Calculating EMI ensures you avoid financial strain during repayment.
You can calculate EMI for home loans, personal loans, car loans, education loans, and loans against property.
An EMI consists of two components: principal repayment and interest payment.
Missing an EMI may result in late payment penalties and can negatively impact your credit score.
A lower debt-to-income ratio improves your chances of loan approval. Ideally, it should remain below 50%.