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Loan EMI Calculator
Plan your Home, Personal, or Car loans. Tweak variables to find the perfect monthly installment.
₹10k
₹50L
1%
30%
1 Year
30 Years
Monthly EMI
₹0
Principal
₹0
Total Interest
₹0
Total Payment (Principal + Interest)
₹0
| Year | Principal paid | Interest paid | Total paid | Balance remaining |
|---|
Understanding Loan EMIs & Calculations
Calculating your **Equated Monthly Installment (EMI)** in advance is key to maintaining stable financial health. An EMI is the fixed monthly amount a borrower pays a lender to clear a loan over a set tenure.
The Mathematical Formula
The standard mathematical formula used to compute the EMI for reducing balance loans is:
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
- P = Principal Loan Amount (the base amount borrowed).
- r = Monthly Interest Rate (annual rate divided by 12 and then divided by 100).
- n = Loan Tenure expressed in total months.
Example EMI Breakdown Table
Here is a comparative breakdown of monthly EMIs for various loan amounts at an average rate of 9.0% p.a. for different tenures:
| Loan Amount (₹) | Rate p.a. (%) | Tenure: 5 Yrs (EMI) | Tenure: 10 Yrs (EMI) | Tenure: 15 Yrs (EMI) |
|---|---|---|---|---|
| ₹5,00,000 | 9.0% | ₹10,379 | ₹6,334 | ₹5,071 |
| ₹10,00,000 | 9.0% | ₹20,758 | ₹12,668 | ₹10,143 |
| ₹25,00,000 | 9.0% | ₹51,896 | ₹31,669 | ₹25,357 |
Frequently Asked Questions
EMI stands for Equated Monthly Installment. It is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs consist of both the principal amount and the interest.
Interest is calculated monthly using the reducing balance method. The formula is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where P is principal, R is monthly interest rate, and N is the tenure in months.
Disclaimer: This Loan EMI Calculator is an educational estimator. Actual loan terms, interest calculations, processing fees, and compounding periods vary depending on the financial institution. Please verify figures with your lender before making financial commitments. MoneyOnRefer does not offer loan products or advisory services.
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Legal Disclaimer & Financial Disclosure
All calculators, estimators, and tools available on MoneyOnRefer are provided strictly for educational, informational, and illustrative purposes.
The calculations, estimates, projections, interest rates, tax values, or commissions displayed are mathematical approximations based on user inputs and standard formulas, and should not be construed as absolute guarantees, promises, or professional advice.
MoneyOnRefer is not a registered investment advisor, credit provider, banker, or licensed tax/financial consultant. We do not provide investment advice, financial planning, advisory services, loan brokerage, or recommendations to invest in any financial instrument or loan product. Any financial decisions or commitments made based on the output of these calculators are done at your own sole risk. We strongly recommend consulting with a certified financial planner, registered accountant, or licensed banking professional before making any financial commitments.
MoneyOnRefer is not a registered investment advisor, credit provider, banker, or licensed tax/financial consultant. We do not provide investment advice, financial planning, advisory services, loan brokerage, or recommendations to invest in any financial instrument or loan product. Any financial decisions or commitments made based on the output of these calculators are done at your own sole risk. We strongly recommend consulting with a certified financial planner, registered accountant, or licensed banking professional before making any financial commitments.