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EMI Calculator India

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Formula & Calculation Logic

E = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1)
E
E: Equated Monthly Installment (EMI)
P
P: Principal Loan Amount
r
r: Monthly interest rate (Annual rate / 12 / 100)
n
n: Loan tenure in months

Understanding EMI (Equated Monthly Installment)

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments 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.

How to use this EMI Calculator

Enter your loan details above to get an instant breakdown. We use the standard reducing balance method used by all major Indian banks (SBI, HDFC, ICICI).

What is the EMI Formula?

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

Is this accurate for Home Loans?

Yes. However, note that banks may add processing fees or insurance which slightly affects the final payout.

Detailed Guide: Using the EMI Calculator for Financial Planning

An Equated Monthly Installment (EMI) is more than just a number; it's the foundation of your monthly budget when you take a loan. Whether you are looking for a dream home, a new car, or a personal loan for immediate needs, our EMI Calculator India is designed to provide you with the precision required for responsible borrowing.

How EMI is Calculated: The Mathematical Breakdown

Unlike simple interest calculators, an EMI uses the Reducing Balance Method. In this system, the interest is calculated on the outstanding loan amount every month. As you pay your EMI, a portion goes toward the interest and the remainder toward the principal. Consequently, your principal reduces every month, and the interest for the next month is calculated on this lower amount.

Formula: [P x R x (1+R)^N] / [(1+R)^N-1]
Where P is Principal, R is monthly interest rate, and N is the number of monthly installments.

💡 Principal vs Interest

In the early years of a long-term loan (like a 20-year Home Loan), almost 70% of your EMI goes toward interest. As the loan matures, this ratio flips, and you pay off the principal faster.

🚀 Prepayment Strategy

Even paying one extra EMI per year can reduce a 20-year loan by nearly 5 years. Use our comparison mode to see how changing your tenure affects total interest!

Frequently Asked Questions (FAQ)

Is this calculator valid for SBI and HDFC Home Loans? ↓

Yes. Most Indian banks (SBI, ICICI, HDFC, Axis) use the standard monthly reducing balance method. This calculator matches the mathematical logic used by these institutions.

How does tenure affect my total interest? ↓

Longer tenures result in lower monthly EMIs but significantly higher total interest paid. Shorter tenures are always cheaper in the long run if you can afford the higher monthly payments.

What is the 'Comparison Mode'? ↓

We built 'Scenario B' to help you compare two different loan offers. You can compare different interest rates from two banks or see how increasing your downpayment (reducing loan amount) saves you money over time.

Why Use EzCalcy?

Disclaimer: Results provided by the EzCalcy EMI Calculator are estimates intended for educational and planning purposes only. They do not constitute financial advice. Please consult with a bank representative or certified financial planner before making final loan decisions.