EMI Calculator

Loan amount


Rate of interest (p.a)

1 %

Loan tenure

1 yrs
30 yrs

EMI Calculator – An Overview

In today’s fast-paced world, loans are an essential component of everyone's life and assist us in achieving a number of significant objectives. Loans are a crucial part of our lives, whether we're financing the purchase of a car, a home, or a child's abroad education.

However, the most crucial phrase that comes to mind while discussing loans is EMI. EMI, or equated monthly instalment, is the amount paid each month toward a loan that we chose. The loan amount's principal and interest are both paid for through the EMI instalments. In the beginning, the majority of the EMI payment is made up of the interest component. The share of interest repayment decreases and the contribution to principle repayment grows as the loan term progresses.

The purpose of an EMI calculator is pretty simple. This tool is used to calculate the amount of monthly instalments one needs to pay against the borrowed amount as a loan. It is one of the widely used financial tools in the world. As the demand for credit has been increasing day by day, most borrowers want to determine the monthly amount they need to pay against the borrowed sum.

The loan EMI calculation formula is given below:

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

In which,

EMI = Equated Monthly Instalment

P denotes the amount of principle that you will borrow from the lending company .

R is the interest rate that the institution is taking into account for a business loan. Depending on how much money you wish to borrow from the lender, the amount will change. Based on the inputs made by the user into the calculator, the rate will be computed on a monthly basis to produce an EMI amount.

N denotes the length of the loan, or the duration during which the borrower must pay back the money. To compute the EMI, the tenure will be added to the formula in months.


EMI Calculator (FAQs)

With the help of our EMI calculator, you can figure out your payments for any desired loan term. Through our charts, you will be able to see not only an overview of the Loan but also a breakdown of each re-payment for any month or year. This calculator can be used for any sort of loan, including personal, education, auto, and house loans.

Feed in the following details into the EMI Calculator:
  • The principal loan amount
  • Loan tenure
  • Rate of interest

There are several benefits of using an EMI calculator including:
  • Decoding the Loan: Not all borrowers are familiar with even the most basic financial jargon. A business loan EMI calculator can be used to simplify the process. The phrases used to calculate the monthly payments should be clearly explained to help borrowers comprehend the financial aspects of a loan.
  • Time-saving: figuring out a loan: You may save time and money by utilising the EMI calculator. You won't need to go to a bank or other type of financial institution any longer. You can choose how much money you wish to borrow and see what commitments you have each month. The calculator only requires a few values to produce results quickly.
  • It enables you to calculate your EMI amount accurately and make financial plans as a result. To increase your chances of getting a loan, make sure your debt-to-income ratio is under 50%.
  • It takes out all potential for error and consistently gives you an accurate estimate.
  • It is quite particular to each kind of loan. For instance, a personal loan has a different EMI breakdown than a home loan.

Three elements determine a loan's EMI:
  • Total amount borrowed by the person is represented by the loan amount.
  • Interest rate is the term used to describe the rate at which interest is applied to a loan.
  • Loan tenure refers to the length of time that the lender and the borrower have agreed to for loan repayment.

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