Equated Monthly Installment – EMI for short – is the amount billed each month to the bank or any other financial institution until the loan sum is fully paid off. It is formed of the interest on loan as well as part of the principal amount to be repaid. The computation of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid.
This sum has to be paid monthly. The interest component of the EMI would be better during the early months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though you’re monthly EMI payment won’t change, the proportion of principal and interest components will change with time.
EMI Calculator is for home loan, car loan, personal loan, education loan or any other fully amortizing loan using this calculator.
- Go into the following information in the EMI Calculator:
- Principal loan amount you wish to benefit (rupees)
- Loan term (months or years)
- Rate of interest (percentage)
- EMI in advance OR EMI in arrears (for car loan only)
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