# EMI Calculator

EMI calculator
Results
 Principal amount \$0.00 Interest Payable \$0.00 Total Amount Payable \$0.00 EMI \$0.00

## What is Equated Monthly Installment (EMI)?

• Equated Monthly Installment (EMI) is the amount that must be paid to the bank or to any other financial institution on a monthly basis until the loan amount is completely paid off.
• It is made up of both the interest on the loan and a portion of the principal amount that must be repaid.
• This amount must be paid on a monthly basis. The interest component of the EMI would be greater during the first few months and would gradually decrease with each payment as the loan progressed.
• The interest rate determines the precise percentage of the loan that will be used to pay down the principal. The proportion of principal and interest components in your monthly EMI payment will change over time, even if your monthly EMI payment will remain the same. With each subsequent payment, you will make a greater contribution to the principal and a smaller contribution to interest.

## What is the formula for EMI calculations?

• The formula to calculate EMI: E = P*R*(1+r)^n /((1+r)^n - 1)
• where E is EMI P is Principal Loan Amount It is time-consuming, difficult, and error-prone to compute EMI by hand or in MS Excel for various combinations of principal loan amount, interest rate, and loan duration using the aforementioned EMI formula or other similar methods. With the help of our EMI calculator, you can automate this calculation and receive the results in a fraction of a second, complete with visual charts indicating the monthly schedule and the breakdown of the total payment.

## Calculation of the Floating Rate EMI

• Compute the floating / variable rate EMI by considering two opposing situations, namely, an optimistic (deflationary) scenario and a pessimistic (inflationary) scenario, while calculating the rate.
• Loan amount and loan tenure, two components necessary to calculate the EMI, are entirely within your control; that is, you will determine how much loan you will need to borrow and how long your loan tenure should be, among other things.
• However, interest rates are determined by banks and housing finance companies (HFCs) in accordance with the rates and regulations set by the Reserve Bank of India (RBI).
• This type of computation will assist you in determining how much EMI you can afford, how long your loan tenure should be, and how much money you should borrow in total.
• This type of estimate aids you in making preparations for such future possibilities. When you take out a loan, you are committing to a financial obligation that will last for several months, years, or even decades. So think about the best and worst-case scenarios and be prepared to deal with them.

## How to Make Use of the Mcalculatorâ€™s EMI Calculator?

When you follow these straightforward steps, it is easy to use the Mcalculator.

## Step 1:

Enter the following:
• The amount of the principal loan you wish to obtain
• Loan repayment period (months or years)
• The annual percentage rate of interest (percentage)
• EMI in advance OR EMI in arrears (depending on the situation) (for car loan only)

## Step 2:

To make changes to the values in the EMI calculator form, move the slider to the right. Alternatively, if you require more specific values, you can input them directly into the necessary areas supplied above.

## Step 3:

EMI calculator will recalculate your monthly payment (EMI) amount as soon as the values are updated using the slider (or as soon as the values are entered straight into the input fields and press the 'tab' key), if any of the values are changed.

## Advantages of using the EMI Calculator from Mcalculator

• Simple to use
• Clear to comprehend
• Quick to run,
• Use of colourful charts and instantaneous results
• Using this calculator, you can figure out the monthly instalments for a home loan, a car loan, a personal loan, an education loan, or any other completely amortising loan.