# EMI Calculator

EMIs on loans are helpful as they provide a structured and manageable way for borrowers to repay their loans, making it easier to budget and plan for their finances.

Loan Amount

Interest rate

%

1%

15%

Loan Duration

Yrs

1 Yr

30 Yrs

EMI

0

Principal Amount

Interest

Total Payable

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## What Is an 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.

## How Does a Loan EMI Calculator Work?

The working of the online EMI calculator is simple. It just considers the basic details of a loan and provides the EMI amount. It considers the loan amount, rate of interest and duration of the loan. Once these details are entered into the calculator, it displays the EMI of the loan along with a detailed breakdown of the principal amount, interest amount and total payable on the loan.

## EMI Calculator Formula

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

Let us consider an example to calculate EMI and understand the EMI formula better.

Suppose you bought an iPhone for ₹1,00,000 at an interest rate of 8% per annum for a tenure of 2 years. The EMI you need to pay for the iPhone will be calculated as follows:

• P = ₹1,00,000
• R = 8% = 8/12/100 = 0.0066
• N = 2 years = 2*12 = 24 months

E = [1,00,000 x 0.0066 x (1+0.0066) ^24]/ [(1+0.0066) ^ (24-1)]
= ₹4,523

Therefore, the EMI you need to pay monthly on your new iPhone will be ₹4,523. However, the manual calculations are time-consuming and are prone to errors easily. This is where an online EMI calculator comes to your rescue.

• The online EMI calculator gives an accurate estimation of your EMI amount, making it easy for you with financial planning.
• It will save time without any manual calculations.
• The results given by the online EMI calculator are error-free, which cannot be guaranteed in the case of manual calculations.

## How To Use Angel One Loan EMI Calculator?

The usage of Angel One’s EMI calculator is easy and effortless. Open the EMI Calculator online on Angel One and follow the steps given below:

• Enter the loan amount
• Enter the interest rate
• Enter the duration of the loan

That’s it, and we are done. The online EMI calculator by Angel One will give quick results of the EMI amount along with a breakdown of the total payable amount, interest amount and principal amount of the loan.

Here’s another example to understand the usage of the EMI Calculator Online on Angel One.

Assume you are planning to get a loan of ₹1,20,000 for a wedding expense. The interest rate on the loan is 7% and the duration is of 3 years. Just enter these values into the calculator. The loan calculator displays the results as follows:

• EMI = ₹3.705/month
• Principal amount = ₹1,20,000
• Interest = ₹13,389
• Total Payable = ₹1,33,389

So you’ll have to pay an EMI of ₹3.705 every month for 3 years. If you think this will exceed your budget, then you can find a loan with a lower interest rate or increase the tenure of the loan. If the EMI amount is less than the budget, you can reduce the duration of the loan. This way, you can set different scenarios and use the loan calculator to help you out with the calculations in seconds.

## Advantages of Using Angel One EMI Calculator

• 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.

## Types of EMI Calculators

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.

## Factors Affecting Your EMI Amount

• 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.

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## EMI Calculator FAQs

### How can I reduce my EMI amount?

You can reduce your EMI amount by:

• Choosing a longer loan tenure: This will reduce your monthly instalment but increase your total interest payable.
• Choosing a lower interest rate: This will reduce both your monthly instalment and your total interest payable. You can negotiate with your lender or switch to another lender who offers a lower interest rate.
• Making a higher down payment: This will reduce your principal amount and hence your monthly instalment and total interest payable.

### What are the factor that affects individuals EMI eligibility?

EMI eligibility depends on various factors, such as:

• Income: income determines your repayment capacity and hence your maximum EMI amount. Generally, lenders prefer that your EMI does not exceed 40% to 50% of your monthly income.
• Credit score: Credit score reflects your credit history and repayment behaviour. A higher credit score indicates a lower risk of default and hence increases your chances of getting a loan at a lower interest rate and higher EMI amount.
• Existing debts: Your existing debts affect your debt-to-income ratio, which is the percentage of your income that goes towards paying off your debts. A lower debt-to-income ratio indicates a higher surplus income and hence increases your EMI eligibility.

### What types of loans can be calculated using an EMI calculator?

EMI calculator can be used for calculating the EMI payments of various loans such as

• Personal Loan
• Car Loan
• Home Loan

### What happens if I miss an EMI payment?

If you miss an EMI payment, the lender may charge a late payment fee and penal interest on the outstanding amount.

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