Loan/EMI Calculator
Calculate monthly payments, total interest, and view amortization schedule.
| Year | Principal | Interest | Balance |
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📖 How EMI is Calculated
EMI (Equated Monthly Installment) is calculated using the following formula:
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where: P = Principal loan amount, r = Monthly interest rate, n = Number of monthly payments
Understanding Your Results
- Monthly Payment: The fixed amount you pay each month
- Total Interest: The total interest paid over the loan term
- Total Payment: Principal + Total Interest
❓ Frequently Asked Questions
EMI stands for Equated Monthly Installment. It's the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month.
You can reduce total interest by: choosing a shorter loan term, making extra payments toward principal, refinancing at a lower interest rate, or making bi-weekly payments instead of monthly.
The amortization schedule shows yearly breakdowns of how much goes toward principal, how much goes toward interest, and your remaining balance. Early payments go mostly toward interest, while later payments go mostly toward principal.