EMI Calculator

About EMI and Calculator

EMI means Easy Monthly Installments which is typically used to indicate the amount you will pay every month when you get a loan from the bank. To quickly find the monthly EMI amount we have developed an EMI calculator which can accept inputs in Indian currency and the preferred number format.

EMI Calculator

EMI Calculator terms

P: Principal Amount
The loan amount that you want to borrow. The currency does not matter but for the sake of simplicity let’s enter the loan amount in India Rupees

N: Loan tenure in months
The loan repayment time period. If your loan repayment is in years then convert it to months by multiplying it with 12.

For example: Loan Repayment = 30 years which is equal to 30 * 12 = 360 months

R: Monthly Rate of Interest
The monthly interest charged by the bank on your loan. Some banks may provide you with the annual rate of interest, in that case you can convert it to monthly interest rate by dividing it by 12/100.

For example: Annual Interest Rate = 12% Per Annum then monthly interest rate = 12 / 12 / 100 = 0.01

EMI Calculator Formula

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

EMI Calculation Example

If your loan amount is Rs. 10 Lakhs which has interest of 6% Per Annum and loan period of 5 years then the EMI formula and the amount will be:

P: Rs 10,00,000; N: 5 * 12 = 60 months; R: 6 / 12 / 100 = 0.005

EMI Amount:

10,00,000 x 0.005 x (1+0.005)⁶⁰
[(1+0.005)⁶⁰-1]

= 19,332. 8015

= 19,333 (rounding off the number to 0 decimals)

So the EMI Amount is Rs. 19,333

Other useful EMI related formulas

When you are borrowing money, you might find value in understanding total interest paid over lifetime and the total amount you will payback. This information can help you make a decision about which loan terms are favorable to your financial needs. We display this information in the calculator result and this is how you can manually calculate it.

Total Payable Interest (TI): Interest paid over the lifetime of the loan
Formula: [(EMI formula X Loan Tenure in Months)] – Loan Amount i.e

[19,332. 8015 * (5 * 12)] – 10,00,000 = Rs 1,59,968.09 i.e Rs 1,59,968 (round off to zero decimals)

Total Payable Amount: Total Amount that you will pay back to the bank on the loan
Formula: (EMI formula X Loan Tenure in Months) i.e

19,332. 8015 * (5 * 12) = Rs 11,59,968.09 i.e Rs 11,59,968 (round off to zero decimals)

Tip: Round off the numbers only in the end of calculation

To summarize: If you get a loan of Rs 10,00,000 at interest of 6% Per Annum with a repayment period of 5 years then your

Popular Loan Types in India

In India, there are many more loan options but the ones below are some of the popular loan types.

• Home
• Car
• Personal
• Education
• Agriculture
• Business etc

FAQs

How does late payment of EMI impact?
To name a few; In the long term it can impact your CIBIL score (i.e Credit score) which in turn can impact your ability to get credit in India. In the short term you might get some penalties which typically could be 1% – 2% of your EMI amount.

What is the amortisation schedule?
Amortisation schedule provides detailed information on what you will pay from start till the end of the loan repayment period. It can help you understand for every month what % of your EMI is paid towards principal and the interest.

Does EMI payment reduce my tax liability?
You can deduct the interest paid on the home or personal loan in a fiscal year. Car loan is not eligible for tax deductions typically as it’s considered a luxury product purchase.

How do I compare loans from various banks?
Our advice is to first compare the loan terms that are offered to you. Calculate your monthly EMI and Total Interest that you will pay over the loan’s lifetime. Compare these data points across the banks and see what looks good

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Disclaimer: Information on gyaankashti.com is for reference only. Amounts may differ slightly due to rounding. Please report any calculation errors in the comments.