EMI Calculator

EMI, or Equated Monthly Installment, is the fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.

EMI is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N – 1], where P is the principal loan amount, R is the monthly interest rate, and N is the number of monthly installments.

Knowing your EMI helps you plan your monthly budget. It gives you a clear idea of how much of your monthly income will be allocated towards loan repayment, allowing you to make informed financial decisions.

Typically, the EMI amount remains fixed throughout the loan tenure. However, it can change if there's a change in the interest rate (in case of floating rate loans) or if you make additional payments towards the principal.

Missing an EMI payment can result in penalties, increased interest rates, and a negative impact on your credit score. It's essential to ensure timely payments to avoid such consequences.