EMI Calculator
Estimate your monthly installments with our EMI calculator. Enter loan amount, interest rate, and tenure to calculate EMIs instantly and manage your financial planning with ease and accuracy.
₹5,00,000.00
12.00 %
3 years
⚠️ Disclaimer: The amortization schedule is an estimate and may differ across banks based on applicable fees or additional charges.
| Year | Principal Amount | Interest Amount | Closing Balance |
|---|
What is EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment you make to a lender to repay a loan. It consists of both the principal amount and the interest component.
Loan Amount
The loan amount is the total money borrowed from a lender to buy a car, after subtracting any down payment or trade-in value. It is repaid in monthly installments.
Interest Rate
The interest rate is the cost of borrowing money, expressed as a percentage. A lower rate reduces your total loan cost.
Loan Term
The loan term is the time period you have to repay your car loan, commonly 36, 48, 60, or 72 months. Shorter terms have higher payments but lower total interest.
Total Cost of the Loan
The total cost of the loan is the sum of the loan amount and all interest paid over the loan term. It’s useful for comparing financing options.
EMI Formula
Loan Payment Formula
Where:
EMI Example
Example: Home Loan EMI Comparison
Loan Amount: ₹20,00,000at an annual interest rate of 7.5%.
Comparison: 10 Years vs 20 Years
10-Year Loan (120 months)
EMI ≈ ₹23,748
Total Payment ≈ ₹28,49,760
Interest Paid ≈ ₹8,49,760
20-Year Loan (240 months)
EMI ≈ ₹16,111
Total Payment ≈ ₹38,66,640
Interest Paid ≈ ₹18,66,640
Key Insight
A shorter tenure (10 years) means a higher EMI but saves nearly ₹10 lakh in interest. A longer tenure (20 years) reduces EMI burden but almost doubles the total interest paid.
Why EMI Calculation Matters
EMI calculation helps in budget planning, loan comparison, and ensures that your monthly expenses are manageable while avoiding financial stress.