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Loan EMI Calculator

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Free Loan EMI Calculator: Calculate Monthly Installments for Home, Car, Personal Loans

Calculate your loan EMI instantly! Free online EMI calculator for home, car, personal, and business loans. Compare interest rates, tenure, and prepayment options. 100% accurate results.

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Principal

₹0

Total Interest

₹0

Total Payment

₹0
Year Principal (₹) Interest (₹) Balance (₹)

Here’s a clear, step-by-step explanation of the EMI calculation formula

EMI (Equated Monthly Installment) is the fixed monthly amount you pay to repay a loan, combining both principal and interest. The formula ensures equal payments over the loan tenure.

The Formula:

Loan EMI Calculator tool interface with loan amount, interest rate, and tenure inputs

Why This Formula Works

  • Amortization: The formula distributes principal and interest payments equally over time.
  • Interest-Heavy Initial Payments: Early EMIs cover more interest; later EMIs focus on principal.
  • Accuracy: Accounts for compounding monthly interest.

Key Takeaways

  1. Interest Rate Impact: A 1% rate increase can raise EMI by ₹600-₹1,000/month for large loans.
  2. Tenure vs. EMI:
  • Longer tenure = Lower EMI but higher total interest.
  • Shorter tenure = Higher EMI but lower interest cost.
  1. Prepayment: Reduces principal, lowering total interest (use the “prepayment” feature in your calculator).

Common FAQs

Q: Can I calculate EMI manually without the formula?
A: Yes! Use the formula above, or try Excel’s =PMT(rate, nper, pv) function.

Q: Does EMI include processing fees or GST?
A: No—this formula only calculates principal + interest. Add fees separately for total cost.

Q: How do floating interest rates affect EMI?
A: EMI may change if rates revise. Use your calculator’s “adjustable rate” feature to simulate scenarios.

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