EMI Calculator – Home Loan, Car Loan

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off.

The main advantage of an EMI is that it helps borrowers repay their loans easily and comfortably. By knowing the exact amount they have to pay each month, borrowers can plan their finances better and avoid defaulting on their loans.
The main disadvantage of an EMI is that it generally leads to a higher overall cost of the loan. This is because the borrower ends up paying more interest over the life of the loan. In addition, EMIs can be a burden for borrowers who are struggling to make ends meet. If a borrower falls behind on their EMI payments, they may be subject to late fees and penalties.

For EMI (Equated Monthly Installment), you need to use the following formula.
The formula is as follow: EMI = (p * r * (1+r)^n)/((1+r)^n-1)
Practical Example
If someone has a loan amount of Rs. 100000 at a 10% interest rate, and the loan period is 1 year (12 months), the monthly EMI is Rs. 8791.59.
Loan Amount: Rs. 100000
Rate: 10%
Tenure: 1 Year (12 months)
Monthly Total: Rs. 8791.59
Total Interest Payable: Rs. 5499.08
Total Amount Payable: Rs. 105499.08

You can calculate Monthly EMI by simply entering the Total Loan Amount, the interest rate, and total tenure, and hit Calculate Button. After that, you can see Monthly EMI and also Total Interest Payable. and Total Amount Payable.