EMI Calculator
Take benefit of our EMI Calculator for judging the affordability of the EMI on your loan. You can decrease your EMI by increasing your tenure or by wisely choosing the bank with the lowest rate of interest. This can be very useful while taking a Home Loan, Personal Loan, Education Loan or a Car Loan.
Tips to use the Loan EMI Calculator :
- Input the Loan amount that you wish to avail
- Enter the Rate of Interest on the Loan
- Select the Loan Tenure (in years)
The EMI Calculator will help you understand :
- The total interest payable on the loan
- The total amount payable on the loan
- The exact EMI (ie Equated Monthly Installment payable every month on the loan)
In case you wish to get the break-up of the EMI paid every month against the Principal Adjustment and Interest Charged – use our Amortisation Table
Most people assume that the EMI is applied in equal parts towards the principal and the interest every month, however this not the case. In the initial years the interest component repaid is higher and during the latter years of repayment the principal component is higher. While a portion of every payment is applied towards both the interest and the principal balance of the loan, the exact amount applied to principal each time varies (with the remainder going to interest). An amortization schedule reveals the amount applied towards interest, as well as the amount paid towards the principal balance, with each payment. Initially, a large portion of each payment is devoted to interest. As the loan matures, larger portions go towards paying down the principal. In addition to breaking down each payment into interest and principal portions, an amortization schedule also reveals the remaining principal balance on each payment date
Some Tips :
- Make Your EMI Affordable : You should ideally pay not more than 50% of your monthly income as EMI
- Your EMIs may vary : in case you have taken a loan on a floating rate of interest, the EMI may change when the reference rate on the loan changes. In case of any revision, use our EMI calculator to re-check the exact EMI on the loan.
