EMI Calculator for Home Loan, Car Loan & Personal Loan in India
EMI stands for Equated Monthly Installment. It is a fixed amount paid by a borrower to a lender at a specified date each month. EMIs are commonly used for repaying loans, such as home loans, car loans, or personal loans. Each EMI payment includes both principal repayment and interest charges.
EMI:
EMI = P × R (1 + R)^ N / (1 + R)^ N - 1
P = Principal Amount
R = Interest rate per month
N = Time period in months
Total Amount = EMI × N
Total Interest = Total Amount - P
Suppose you take a loan of ₹ 1,00,000 at an annual interest rate of 12% for a tenure of 5 years (60 months). To calculate the EMI, we can use the formula
To calculate the EMI:
| Principal Amount | = 1,00,000 |
| Interest | = 12 % |
| Time Period | = 5 Years |
| P | = 1,00,000 |
| R | = (12 /100) / 12 = 0.01 |
| N | = 5 × 12 = 60 months |
EMI = P × R × (1 + R)^ N / (1 + R)^ N - 1
from this formula first we can calculate (1 + R)^ N value
| (1 + R)^ N | = (1 + 0.01)^ 60 |
| = (1.01)^ 60 | |
| = 1.81669669856 |
| (1 + R)^ N - 1 | = 1.81669669856 - 1 |
| = 0.81669669856 |
| EMI | = P × R × (1 + R)^ N / (1 + R)^ N - 1 |
| = (100000 × 0.01 × 1.81669669856) / 0.81669669856 | |
| = (1000 × 1.81669669856) / 0.81669669856 | |
| = 1816.69669856 / 0.81669669856 | |
| = 2224.4447685 | |
| = 2224 |
| Total Amount | = EMI × N |
| = 2224 × 60 | |
| = 133466.68611 | |
| = 133467 |
| Total Interest | = Total Amount - P |
| = 100000 - 133467 | |
| = 33467 |
Therefore, the monthly EMI is ₹ 2224, Total Interest is ₹ 33467 and Total Amount is ₹ 133467.
