EMI Calculator

An EMI calculator helps you calculate EMI amount for any loan, such as a home loan, car loan, personal loan, education loan, etc. online for free. It takes the entered values and computes the EMI amount in seconds. The online EMI calculator can also show you a break-up of total payment into principal and interest components. It also helps you compare different loan options and plan your monthly budget accordingly.

Here's the formula to calculate EMI:

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

Where,

• E = EMI
• P = Principal Amount
• R = Rate of interest. This is calculated on a monthly basis. If the interest rate is 4% per annum then R will be 4/12/100 = 0.0033.
• N = Duration in months

• Accurate loan planning: Angel One’s EMI calculator provides precise calculations, helping you plan your loan repayment without any surprises. You can use the calculator to experiment with different loan amounts, tenures, and interest rates to find the most suitable option.
• Quick comparison: While using the online EMI calculator you can compare EMIs across various loan options and make an informed borrowing decision.
• Quick and instant results: You get to calculate EMIs and interest amount results immediately, saving you time and effort in manual calculations.
• Free to use: Angel One’s EMI calculator is free to use and can be availed at any time from anywhere at your convenience.
• User-friendly: Angel One’s EMI calculator is user-friendly and requires only basic details like loan amount, interest rate and duration of the loan.

Equated Monthly Installment, also referred to as EMI, is a fixed amount of money that borrowers pay every month to lenders until their loan is fully repaid. It consists of two components: the principal amount and the interest amount. The principal amount is the money you borrow from the lender, and the interest amount is the charge for using the lender's money. The EMI amount depends on three factors: principal amount, interest rate, and loan tenure/duration.

There are various types of Loan EMI Calculators that can help you with your EMI calculation easily.

• Personal loan EMI calculator: If you are considering getting a personal loan, the personal loan EMI calculator or EMI calculator can be your guiding tool. It helps you estimate your monthly instalments accurately, enabling you to plan your budget effectively. By inputting the loan amount, interest rate, and tenure, you'll receive a clear breakdown of your EMI amount.
• Home loan EMI calculator: If you are planning to buy your dream home, the home loan EMI calculator home loan EMI calculator ensures you're well-prepared. Just enter the loan amount, interest rate, and tenure, and you'll instantly see your monthly EMI and the overall interest amount. The online loan EMI calculator assists you in making informed decisions about your home purchase.
• Car loan EMI calculator: Using the car loan EMI calculator you can estimate your monthly expenses. This enables you to choose a car loan that suits your financial capacity, ensuring that you can enjoy your new vehicle without stress.
• Education Loan EMI calculator: The education loan EMI calculator ensures that you're well-prepared for the financial aspects of pursuing higher education. The education loan EMI calculator lets you plan your monthly repayments, allowing you to focus on your studies without financial worries.
• Loan against Property EMI calculator: On using the loan against property EMI calculator, you can check how much EMI you have to pay if you get a loan against the property. By knowing the exact monthly repayment, you can use your property's value to meet your financial needs while maintaining stability.

The floating interest rate is a variable interest rate that keeps changing. The RBI keeps updating the interest rates according to the economic conditions. This ultimately will impact your monthly EMIs. As a borrower, you must consider the possibility of an increase and decrease in the rates at any time. Hence, while calculating a loan EMI, it is better if you can calculate a floating rate EMI by considering two different scenarios - optimistic and pessimistic.

The loan amount and the tenure of the loan are determined by you, while the interest rate is determined by the banks and RBI.

Suppose the interest rate is decreased by 2% from the current rate, your EMI amount will also come down. In this case, you can shorten your loan duration to adjust it according to the monthly budget you’ve allotted to the EMI.

On the other hand, considering a pessimistic scenario, if RBI is increasing the interest rate, you can check how much extra you will have to pay on the EMI. You can check if you can adjust this extra amount on the EMI easily in your monthly expenses or else you can increase the duration of the loan by talking to the bank.

This way, calculating both the positive and negative possibilities of the loan can help you be prepared.

• Interest rate: The primary factor that affects the EMI amount is the interest rate. A higher interest rate increases your EMI, as you pay more interest along with the principal.
• Loan tenure: Longer tenures also impact the EMI. Shorter tenures will result in higher EMIs and on the other hand, longer tenures result in low EMIs but the interest amount will be high.
• Type of interest: Fixed or floating interest rates can impact your EMI. Floating rates may change during the tenure, affecting your monthly payments.
• Credit score: A better credit score can result in lower interest rates, affecting your EMI amount.