EMI Calculator



Total Interest Payable:


Total of Payments (Principal + Interest):


What is EMI? explain

EMI stands for Equated Monthly Installment and it refers to the fixed amount of money that a borrower is required to pay to a lender each month to repay a loan.

EMIs are a combination of both the loan principal and the interest on the loan and are calculated using a loan amortization schedule. The EMI amount is fixed for the entire loan term and remains the same throughout the repayment period.

EMIs are typically used for loans that have a fixed interest rate, such as mortgage loans, car loans, and personal loans. Borrowers make a fixed EMI payment each month until the loan is fully repaid.

By dividing the loan amount into fixed monthly payments, EMI makes it easier for borrowers to budget and plan for loan repayment. It also allows lenders to receive a consistent stream of payments and manage their cash flow.

What are the advantages and disadvantages of EMI?

Advantages of EMI:

  1. Predictable Repayment Schedule: EMI offers a fixed and predictable repayment schedule, which makes it easier for borrowers to plan and budget for loan repayment.
  2. Affordable Payments: EMI allows borrowers to repay their loans in smaller, more manageable payments, which can be more affordable than a lump-sum repayment.
  3. Fixed Interest Rate: EMI is typically used for loans with a fixed interest rate, which provides stability and predictability for both borrowers and lenders.
  4. Lower Interest Cost: EMI helps to reduce the overall interest cost of a loan by spreading the repayment over a longer period of time.
  5. Improves Credit Score: Regular and timely EMI payments can help improve a borrower’s credit score.

Disadvantages of EMI:

  1. Higher Total Cost: EMI can result in a higher total cost over the life of the loan due to the interest charges incurred over a longer period of time.
  2. Inflexible Repayment: EMI offers a fixed repayment schedule, which may not be flexible enough to accommodate changes in a borrower’s financial situation.
  3. Prepayment Penalties: Some EMI loans may come with prepayment penalties, which can discourage borrowers from paying off the loan early and potentially result in a higher overall cost.
  4. Strict Repayment Terms: EMI requires borrowers to make regular and timely payments, and may result in penalties or legal action if payments are missed.

It’s important to carefully consider the advantages and disadvantages of EMI before taking out a loan and to choose a loan that best fits your financial needs and goals.

Read about Loan Calculator

How to Use EMI Calculator?

To use our EMI calculator, you need to enter the following information:

  1. Loan amount: The total amount you are borrowing.
  2. Interest rate: The annual interest rate for the loan.
  3. Loan term: The length of the loan repayment period in months or years.
  4. Repayment frequency: The frequency of payments, usually monthly, quarterly, or annually.

Once you have entered the above information, our EMI calculator will automatically calculate your monthly EMI payment based on the inputs.

You can use the EMI calculator to compare different loan scenarios and to see how changes in interest rates or loan terms will impact your monthly EMI payment.

It’s important to note that the EMI calculator is a useful tool to estimate your monthly EMI payments, but the actual EMI you will be required to pay may vary based on the terms and conditions of your loan. It’s always a good idea to consult with a financial advisor before taking out a loan.

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