Loan EMI Calculator
Use this calculator to determine your monthly EMI based on the loan amount, interest rate, and tenure.
Goods and Services Loan (EMI)
What does EMI stand for?
EMI, or Equated Monthly Installment, is a fixed payment amount that a borrower pays to a lender each month to repay a loan or debt. It consists of both the principal amount (the original loan) and the interest charged by the lender. This fixed payment schedule helps borrowers manage their finances by breaking down a large loan into smaller, predictable monthly payments.
How is Calculate EMI
EMI Formula:
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
Is EMI Good or Bad?
- Affordable Purchases: EMIs help you buy costly items (like phones, appliances, or cars) without paying the full amount upfront.
- Financial Discipline: Regular EMI payments instill a habit of monthly budgeting and responsible spending.
- Interest Burden: Longer loan tenures may result in paying significantly more due to accumulated interest.
- Credit Impact: Timely EMI payments can improve your credit score, but missed payments can damage it.
- Loan Trap Risk: Taking multiple EMIs at once can lead to debt stress or repayment difficulty if not managed properly.
Types of Loans
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1. Home Loan
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2. Personal Loan
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3. Auto Loan
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4. Education Loan
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5. Business Loan
Need Help with EMI?
Use EMI software or calculators to stay compliant and manage EMI Loan Amount easily.