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Loan EMI Calculator
Amount (A)
Interest Rate (R) (in %)
Tenure (T) (in years)
Processing Fees (P) (in %)
Down Payment (D)

Total Down Payment (TDP)
(TDP = D + P)

12

Loan EMI (LE)

(LE = [PLA x R x (1+R)^T]/[(1+R)^T-1] )

123

Total Interest Payable (TIP)
(TIP = LE * T)

1234

Total Payment (TP)
(TP = LA + TIP + P)

12345

Note: (PLA) is Principal Loan Amount, which is calculated by subtracting Down Payment (D) from Actual Amount (A) and Loan EMI (LE)
is Calculated on Principal Loan Amount (PLA). This Calculator is viewing purpose only.

Loan EMI Calculator: What It Is and How It Works

A Loan EMI Calculator is a handy online or software-based tool designed to help borrowers calculate their monthly Equated Monthly Installments (EMIs) for a loan. It provides an easy way to estimate the repayment schedule before committing to a loan, enabling users to make informed decisions based on their financial situation.

What is EMI?

EMI (Equated Monthly Installment) is the fixed amount a borrower pays to the lender every month to repay the loan over a specified tenure. Each EMI consists of:
1) Principal Amount: A portion of the loan amount.
2) Interest: The interest charged on the remaining loan balance.

What is EMI?

How Does a Loan EMI Calculator Work?
A loan EMI calculator uses a standard formula to compute EMI:
EMI=P×R×(1+R)N(1+R)N−1
EMI=(1+R)N−1P×R×(1+R)N
Where:
P = Loan amount (Principal)
R = Monthly interest rate (Annual Rate of Interest ÷ 12 ÷ 100)
N = Loan tenure in months
Steps:
1) Input the Loan Amount (Principal): The amount you plan to borrow.
2) Enter the Interest Rate: Annual interest rate offered by the lender.
3) Specify the Loan Tenure: The repayment period in months or years.
The calculator quickly computes the EMI, helping users understand how much they need to pay monthly.

Benefits of Using a Loan EMI Calculator:

Time-Saving: Instantly calculates the EMI without manual effort.
Accurate Results: Eliminates errors associated with manual calculations.
Budget Planning: Helps borrowers assess affordability and manage monthly budgets effectively.
Loan Comparison: Allows easy comparison of EMIs for loans from different lenders, helping choose the best deal.
Transparency: Shows the breakup of principal and interest amounts in the EMI schedule.

Features of Advanced EMI Calculators:

Modern EMI calculators offer more features, such as:

1) Amortization Schedules: Breaks down EMIs into principal and interest components over time.
2) Prepayment Calculations: Shows the impact of early repayments on loan tenure and total interest.
3) Adjustable Parameters: Allows users to vary interest rates or tenures to see how it affects EMIs.