EMI Calculator

What Is EMI?

EMI stands for “Equated Monthly Installment.” It is a fixed payment that a borrower agrees to pay each month to a lender in order to pay off a loan. An EMI consists of two components: principal and interest. The principal is the amount of the loan that is being borrowed, and the interest is the cost of borrowing the money, which is calculated as a percentage of the principal.

Calculating an EMI is a useful way for borrowers to determine how much they can afford to borrow and to plan their monthly budget. Online calculators and other tools can help borrowers calculate their EMIs based on the loan amount, interest rate, and loan term.

What Is A Loan EMI Calculator?

A loan EMI calculator is a tool that can be used to calculate the monthly installment (EMI) that a borrower would need to pay in order to pay off a loan. It can be used to determine the EMI for a variety of different types of loans, including mortgage loans, car loans, personal loans, and others.

To use a loan EMI calculator, you typically need to input the following information:

The loan amount: This is the total amount of money that you are borrowing.
The interest rate: This is the percentage of the loan amount that you will be charged as interest.
The loan term: This is the length of time over which you will pay off the loan.

Based on this information, the EMI calculator will calculate the monthly EMI that you will need to pay in order to pay off the loan within the specified loan term. It will also provide an amortization schedule, which shows how the EMI is divided between principal and interest payments over the life of the loan.

Loan EMI calculators can be found online, and many banks and financial institutions also provide them on their websites. Using a loan EMI calculator can help borrowers determine how much they can afford to borrow and plan their monthly budget.

Get your personalized EMI estimates now for free. Call us at Loanz360 to talk to a financial expert.

How Does An EMI Calculator Work?

An EMI (Equated Monthly Installment) calculator is a tool that helps you calculate the monthly payment you will be required to make on a loan. To use an EMI calculator, you need to input the following details:

The loan amount: This is the total amount of money you are borrowing.
The loan tenure: This is the duration over which you will be repaying the loan. It is usually expressed in months.
The interest rate: This is the percentage of the loan amount that you will be charged as interest.

Based on these inputs, the EMI calculator will compute the monthly payment you will be required to make. The payment will consist of two parts: the principal amount, which is the amount you borrowed, and the interest, which is the charge for borrowing the money.

How To Calculate EMI Manually?

A manual EMI Calculator can help you see how much you’ll need to pay each year in principal and interest on the borrowed sum amount.

To calculate EMI Mathematically, EMI = P x R x (1+R)^N / [(1+R)^N-1]

Where the variables, P = Principal amount of the loan, R = Rate of interest, and N = Number of monthly instalments.

“Consider an example to improve understanding of EMI calculations”

For instance, you have taken a loan of Rs. 5 lakhs for 3 years at an interest of 10 % p.a.

To begin, convert the annual interest rate to a monthly rate and the tenure to months.

To find the monthly interest rate, divide the annual interest rate by the number of months in a year, where 10/12 = 0.83% per month

To obtain the value of N, the 3 year loan tenure in months equates a period of 36 months.

Now, considering the variables,

EMI= [5,00,000 x 0.83/100 x (1+0.83/100) ^ 36/ [(1+0.83/100) ^ 36– 1)

EMI= Rs. 16,133

Using the formula, the process of calculating the EMI is the same for all kinds of loans and is universal. However, the EMI value fluctuates in accordance with the three essential parameters, namely loan amount, term and interest rate. It is evident that an increase in the loan amount and rate of interest will lead to a corresponding increase in the EMI payment.

Even so, there are several tools available online to make accurate calculations without the need for manual computation. Also, you can use our EMI calculator service at Loanz360 to determine your principal amount within a matter of seconds. To avail of the service, contact our team. Our team will get back to you with a personalized chart depending on your profile, patterns, and other financial demands. Schedule a call now. Click here.

EMI Formula In Excel With Example

The PMT function in Excel calculates the payment for a loan based on a constant interest rate, a constant payment period, and a constant loan amount. The syntax of the PMT function is as follows:

PMT(rate, nper, pv, [fv], [type])

The parameters of the PMT function are:

Rate: the interest rate of the loan
nper: the total number of payment periods in the loan
pv: the present value; also known as the principal
fv: [optional] the future value, the future value is the cash balance that you want to achieve after the final payment has been made. If this value is not specified, it is assumed to be 0 by default
Type: [optional] the number 0 or 1 and indicate when payments are due: 0 for the end of the period and 1 for the beginning of the period; if omitted, the default is 0

For example, if you have a loan with an interest rate of 5%, a total of 60 payments, a present value of 10,000, and payments are due at the end of the period, you can use the following formula to calculate the payment amount:

=PMT(5%/12, 60, 10000)

This will return an EMI amount of INR 1,935.40.

Note: The interest rate should be entered as a decimal, not a percentage, so 5% is entered as 0.05. The number of payments should be entered in the total number of months, so for a 5-year loan with monthly payments, you would enter 60 (5 years * 12 months/year). The present value should be entered in the currency of the loan, so in this case it would be 10,000 rupees. The type argument is optional and indicates when payments are due, with 0 representing the end of the period and 1 representing the beginning of the period. If this argument is omitted, it is assumed to be 0 by default.

Types Of EMI Calculator

Different types of EMI Calculators are available depending on the loan selected. There is a range of EMI Calculators for various loan types, which can be utilized as per individual needs.

Mortgage Loan EMI Calculator

A mortgage loan is a secured loan which can be availed against any property owned by you, such as a residential property, commercial property, or land. The property must be mortgaged with the lender in order to qualify for a mortgage loan. To help borrowers understand the financial implications of their loan, mortgage loan EMI calculators are used to calculate the amount of the loan and the repayment schedule. The EMI calculator takes into account the principal loan amount, interest rate, and loan tenure, and uses this information to calculate the monthly instalment amount that is to be repaid. The calculator also provides an estimated total repayment amount, which can help borrowers determine whether they can afford the loan.

Mortgage loan EMI calculators are available online and can be used to compare different loan rates and offers. It is important to understand the terms and conditions of the loan before availing it.

Home Loan EMI Calculator

The home loan EMI calculator is a powerful financial tool used to calculate the Equated Monthly Installment (EMI) amount for a home loan. It is a simple and easy-to-use tool that helps homeowners or potential homebuyers understand their repayment options. By entering the loan amount, the loan tenure, and the applicable interest rate, the calculator can provide users with an estimated EMI amount. This helps them to budget their finances and plan their loan repayment schedule with greater accuracy. The calculator also provides information on the total interest payable and the total amount payable, which gives customers a better understanding of their total financial commitment. Additionally, customers can use the calculator to assess the impact of changes in interest rates on their payments.

Personal Loan EMI Calculator

The personal loan EMI calculator is an invaluable tool for individuals who are considering taking out a loan. It can be used to calculate the exact amount of money that needs to be set aside each month in order to pay back the loan in an affordable and timely manner. The calculator takes into account the loan principal, the interest rate, and the loan term in order to calculate the most suitable and accurate repayment plan. This allows loan seekers to take into account their current financial situation and to make informed decisions that are tailored to their needs. Such calculators offer immense convenience as they can be used instantly and provide up-to-date calculations that ensure that customers are able to make the best financial decisions.

Car Loan EMI Calculator

The car loan EMI calculator is a useful tool designed to help you plan your car loan repayment. It can help you calculate the estimated monthly installment (EMI) you need to pay for your car loan. This calculator is a convenient and efficient way to determine the amount of your monthly installments and the total cost of your loan. It can also help you compare different car loan options to find the best option for you.

However, it is important to remember that the car loan amount borrowed must be repaid with interest within the agreed upon time frame, which can be up to five years. If the full amount is not paid back, the lender has the right to repossess the vehicle and auction it off to recover the remaining balance. Therefore, with the car loan EMI calculator, you can plan your car loan repayment accordingly and ensure that you can manage your loan payments without a hassle.

Business Loan EMI Calculator

The business loan EMI calculator is an invaluable tool for individuals and businesses alike. It allows users to quickly and easily calculate the amount of their loan repayment on a monthly basis and can be used to create various payment scenarios. This calculator is extremely helpful for businesses who are looking to make informed decisions about their loans, as it provides a clear overview of the loan amount, term and interest rate. It also allows users to adjust the loan amount and term to see how various scenarios might affect their repayment obligations. Additionally, the calculator can be used to compare multiple loan offers, helping businesses to make the best choice for their financing needs. All of these features make the business loan EMI calculator an important tool for making smart financial decisions.

What Are The Factors Affecting EMI?

There are several factors that can affect the EMI (equated monthly installment) on a loan:

The principal amount: The EMI is directly proportional to the principal amount borrowed. A higher principal amount will result in a higher EMI.

The interest rate: The EMI is also directly proportional to the interest rate on the loan. A higher interest rate attracts a higher EMI.

The loan term: The EMI is inversely proportional to the loan term. A longer loan term means that the EMI will be lower, as the loan will be spread out over a longer period of time.

The frequency of payments: If you choose to make more frequent payments (e.g., weekly or biweekly instead of monthly), your EMIs will be smaller because you are paying off the loan faster.

The type of loan: Different types of loans (e.g., personal loan, home loan, car loan) may have different EMI calculations.

Any fees or charges: Your EMI may also be affected by any fees or charges associated with the loan, such as processing fees or prepayment penalties.

What Is A Loan Amortization Schedule?

A loan amortization schedule is a table that shows the details of a loan, including the principal balance, interest, and remaining balance after each payment is made. The schedule typically shows the payment amount, the amount of each payment that goes toward interest, and the amount that goes toward principal. It also shows the remaining balance after each payment is made. The schedule is used to calculate the loan payment amount and to track the progress of the loan over time. It can be useful for planning purposes and for understanding the financial implications of different loan terms, such as the interest rate and loan length.

What Are The Benefits Of A EMI Calculator?

EMI calculators provide borrowers a significant advantage in understanding their monthly loan payments and managing their financial obligations. This allows them to determine a monthly payment amount that is comfortable for them and helps them avoid financial hardship. Added benefits of using an EMI calculator are:

It helps you plan your budget: By using an EMI calculator, you can see how much you will have to pay each month towards your loan. This can help you plan your budget and see if you can afford the loan.

It allows you to compare loan offers: If you are considering taking out a loan from multiple lenders, you can use an EMI calculator to compare the monthly installment amounts for each loan offer. This can help you choose the loan that is most affordable for you.

It helps you choose the right loan tenure: An EMI calculator allows you to see how the loan tenure (the number of months over which you will repay the loan) affects the monthly installment amount. This can help you choose a loan tenure that is right for you.

It helps you save money: By using an EMI calculator, you can see how different interest rates affect the total cost of the loan. This can help you choose a loan with a lower interest rate, which can save you money in the long run.