Loan Calculator Tools

A Loan EMI (Equated Monthly Installment) Calculator helps users calculate the fixed monthly payment they need to make when repaying a loan. It considers the loan amount, interest rate, and loan tenure to determine the EMI.
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Loan EMI Calculator

What Loan EMI (Equated Monthly Installment) Calculator ?

A Loan EMI (Equated Monthly Installment) Calculator helps users calculate the fixed monthly payment they need to make when repaying a loan. It considers the loan amount, interest rate, and loan tenure to determine the EMI.

How a Loan EMI Calculator is Work ?

1. User Inputs Data:
  • Loan Amount (Principal) – The total loan taken.
  • Interest Rate – The annual interest rate (%) set by the lender.
  • Loan Tenure – The repayment period (in months or years).

2. Formula Calculation:
  • The EMI is calculated using the formula:
  • EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1}
  • EMI = Monthly Installment
  • P = Loan Amount (Principal)
  • r = Monthly Interest Rate (Annual Interest Rate ÷ 12 ÷ 100)
  • n = Loan Tenure in months

3. Result Display:
  • The calculator shows the monthly EMI amount the borrower needs to pay.
  • Some EMI calculators also show total interest payable and total payment (principal + interest).

How to Use Loan EMI Calculator ?

Using a Loan EMI Calculator is simple. Just follow these steps:
1. Enter the Loan Amount
  • Type the total loan amount you plan to borrow. (Example: $10,000)

2. Enter the Interest Rate
  • Provide the annual interest rate (%) set by the bank or lender. (Example: 10%)

3. Enter the Loan Tenure
  • Choose the repayment period in years or months. (Example: 5 years)

4. Click on ‘Calculate EMI’
  • The calculator will instantly compute your monthly EMI using the standard loan formula.

5. View the Results:
  • Monthly EMI – The amount you need to pay every month.
  • Total Interest Payable – The extra amount you pay as interest over the loan tenure.
  • Total Payment – The total amount paid (Principal + Interest).

Example Calculation:

  • Loan Amount = $10,000
  • Annual Interest Rate = 10%
  • Loan Tenure = 5 years (60 months)
  • Monthly Interest Rate = 10% ÷ 12 = 0.0083 (or 0.83%)
  • Using the formula, EMI = $212.47 per month

Benefits of a Loan EMI Calculator:

  • Helps in financial planning before taking a loan.
  • Gives clarity on the repayment amount.
  • Helps compare different loan options.