EMI Calculator
Calculate your Equated Monthly Installment (EMI) for loans.
What's the Real Cost of Your Loan?
Before you take out a home, car, or personal loan, it's crucial to understand your monthly commitment. An EMI (Equated Monthly Installment) calculator demystifies the process. It shows you the fixed monthly payment you'll make to the bank, but more importantly, it reveals the total interest you'll pay over the entire loan period. This helps you see the true cost of borrowing and decide if a loan fits your budget.
How to Calculate Your EMI
You only need three key figures to find your EMI:
- Loan Amount (₹): The total principal amount you plan to borrow.
- Annual Interest Rate (%): The yearly interest rate offered by the lender.
- Loan Term (Months): The total duration of the loan in months (e.g., a 5-year loan is 60 months).
The calculator will instantly compute your Monthly EMI, the total interest paid, and the total amount you'll have paid by the end of the loan.
Frequently Asked Questions (FAQ)
Q: Should I choose a shorter or longer loan tenure?
A: It's a trade-off. A longer tenure means a lower, more affordable monthly EMI, but you will pay significantly more in total interest. A shorter tenure means a higher EMI, but you'll save a lot on interest and be debt-free sooner. Use the calculator to compare both scenarios.
Q: How can I reduce my EMI or total interest?
A: There are three main ways: make a larger down payment to reduce the principal amount, find a loan with a lower interest rate by improving your credit score or comparing lenders, or choose a shorter loan tenure if your budget allows for higher monthly payments.