EMI Calculator – Calculate Loan EMI in 3 Easy Steps. Use our EMI calculator to estimate your Home Loan EMI and also analyse interest and outstanding principal repayment.
EMI will be calculated instantaneously when you move the sliders.
Consider that you have borrowed some money from your friend, but you are not able to return the entire amount at one shot. You both then decide that you would pay back a part of the due amount every month over a period of time at a certain interest rate until you pay him back in full. This is nothing but Equated Monthly Installments or EMI. EMIs are a predetermined sum, a borrower pays to his lender over a period of time until his loan extinguishes. Here, the borrower could be you and the lender could be the bank that has given you the loan.
An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender according to the following mathematical formula; it has different variables present in it:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1];
where, P, R, and N are the variables, which means the EMI value will change every time you change any of the 3 variables.
Let’s discuss these 3 variables in detail.
‘P’ denotes the ‘Principal Amount’.This is the original amount lent to you by the bank/lender. The loan amount will depend on your need and the purpose of the loan. Higher the loan amount, the higher will be the EMI that you pay for the loan taken.