Plan your finances by calculating Home, Car, and Personal Loan Equated Monthly Installments cleanly.
Monthly EMI Payment
Total Interest Payable
Total Amount (Principal + Interest)
| Year | Opening Balance | Interest Paid | Principal Paid | Closing Balance |
|---|
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.
The mathematical formula used to determine your EMI allocation is:
Where P stands for Principal Loan Amount, R represents the periodic monthly interest rate (Annual Rate / 12 / 100), and N represents the total number of monthly payment periods (Years x 12).
Yes, making extra part-prepayments reduces your outstanding principal balance. You can choose to either lower your future monthly EMI amount or shorten your remaining loan tenure.
A flat rate calculates interest based on your initial loan amount throughout the entire lifecycle. A reducing balance rate calculates interest only on your remaining outstanding balance, making reducing balance rates much more cost-effective.