EMI Calculator


Calculate your monthly EMI, along with principal and interest breakup for each month. Also get the amortization table as part of result.




Loan Payment



What is EMI?

EMI (Equated Monthly Installment), as the name suggests, is basically installments equally divided in months which are to be paid for the product purchased or service used within a stipulated time frame. It is the easiest way to lower one's burden of loan every month.

How is EMI calculated?

EMI is calculated using the formula:

 

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

P = Principal or your loan amount
R = Rate of interest
N = Tenure (loan term in a number of years)

Your EMI includes two main components – principal and interest. In the early part of your tenure, the interest amount is higher and that becomes progressively lower. Towards the end of the tenure, the principal amount forms a large proportion of the EMI.

5 Benefits of using EMI Calculator

  • Easy to access
  • Saves time and energy instead of performing manual calculations
  • Provides quick results
  • Helps you ascertain if the monthly EMI is affordable or not
  • Aids you in financial planning

Is it foolishness if I make payments in installments?

Definitely NOT! It’s a very convenient way of buying things, but the problem is that the EMI way of buying, gives a lot of people the feeling that they can afford anything which comes in their way. And there lies the problem! A sizable chunk of people believe, that they need a bigger bone (well they actually don’t) and the easy availability of everything, in EMIs plays a large role in said belief.

As now affording things have become very easy due to EMI but at times it happens that we lose our control on our spending. We extend our affordability horizon to such a great lengths, that we have everything in our life but most of it is under debt.

What will happen if you skip EMI payment?

If you skip your EMIs payment, say due to insufficient balance or any other reason, assuming EMIs remaining the same, the tenure of the loan would increase.

Remember, skipping EMIs does not reflect well on your creditworthiness and could impact your credit score. Hence, make sure you borrow wisely, within your means, in the interest of your financial wellbeing.