EMI-calculator Template

Whether you are applying for a home loan, car loan, personal loan, or business loan, understanding your monthly repayment obligations is essential before applying for a loan.

Definedge’s EMI (Equated Monthly Installment) calculator helps you estimate your monthly installments in seconds, giving you complete image on how you will pay every month and the total cost of your loan.

What is EMI?

EMI is the fixed amount you pay to the lender every month until your loan is fully repaid.

An EMI consists of:

– Principal Amount (the borrowed loan amount)
– Interest Amount (charged by the lender)

The EMI remains constant throughout the loan tenure in most fixed-rate loans.

How does an EMI calculator work?

There are multiple types of loans a person goes through; a few would be planned, like a home loan, car loan, or even a few emergency loans like a personal loan.

And Definedge’s EMI calculator can help to plan finances accordingly. Behind the simplified EMI calculator, there is a mathematical calculation that comes into the picture.

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

Here,

P = Principal loan amount
R = Monthly interest rate
N = Loan tenure in months

Let us look at it, with an example:

Loan amount is ₹10,00,000 with an interest rate of 10% and a tenure of 5 years.

The calculation will look like:

EMI = (10,00,000 × 0.008333 × (1 + 0.008333)^60) ÷ ((1 + 0.008333)^60 − 1)

EMI = ₹21,247

Particulars	Amount
Loan Amount	₹10,00,000
Interest Rate	10% p.a.
Loan Tenure	5 Years
Monthly EMI	₹21,247
Total Amount Payable	₹12,74,820
Total Interest Payable	₹2,74,820

How to use the EMI Calculator?

Definedge’s EMI calculator is simple and easy to use. Follow these steps to get an accurate estimate of your monthly repayments

Step 1: Enter the loan amount
Step 2: Enter the interest rate
Step 3: Select the loan tenure

By simply entering these details, you will get insights into:

– Monthly Loan EMI
– Interest to be paid on the loan
– Total amount to be repaid.

EMIs give convenience to own something you desire or overcoming unexpected expenses, but planning them will help you in the long run.

Benefits of calculating EMI before applying for a loan:

– Improve loan eligibility planning
– Maintain a healthy debt-to-income ratio
– Choose the right tenure
– Build a repayment strategy

Before signing up for any loan, calculate your EMI through Definedge for free and visualise your payback journey, even before the loan amount hits your bank account!

Start calculating your EMI now and borrow with confidence.

Frequently Asked Questions (FAQs)

1. If I increase my loan tenure from 15 years to 30 years, will it reduce my EMI burden?
If reducing your EMIs is the option, then yes, it might reduce your monthly payment, but the overall interest that you will pay will increase significantly.

2. Can I close my loan before the tenure completes?
Yes, most banks and Non-Banking Financial Companies (NBFCs) will give pre-payment options, but a few times there could be charges associated with the same.

3. Can I use this EMI calculator for my Home loan and Car loan?
Yes, Definedge’s EMI calculator is uniform for all the loan types if you have required details to calculate the same.