EMI Calculator for Personal Loans
function calculateEMI() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var loanTenure = parseFloat(document.getElementById("loanTenure").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(loanAmount) || isNaN(annualInterestRate) || isNaN(loanTenure) || loanAmount <= 0 || annualInterestRate < 0 || loanTenure <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
// Convert annual interest rate to monthly interest rate
var monthlyInterestRate = (annualInterestRate / 100) / 12;
// Convert loan tenure from years to months
var loanTenureMonths = loanTenure * 12;
// Calculate EMI using the formula: P * r * (1+r)^n / ((1+r)^n – 1)
// Where P = Principal Loan Amount, r = Monthly Interest Rate, n = Loan Tenure in Months
var emi;
if (monthlyInterestRate === 0) {
emi = loanAmount / loanTenureMonths;
} else {
var numerator = Math.pow(1 + monthlyInterestRate, loanTenureMonths);
emi = loanAmount * monthlyInterestRate * numerator / (numerator – 1);
}
// Calculate total interest payable
var totalInterestPayable = (emi * loanTenureMonths) – loanAmount;
// Calculate total payment
var totalPayment = emi * loanTenureMonths;
resultDiv.innerHTML =
"
Your Monthly EMI: $" + emi.toFixed(2) + "" +
"
Total Interest Payable: $" + totalInterestPayable.toFixed(2) + "" +
"
Total Payment Over Loan Tenure: $" + totalPayment.toFixed(2) + "";
}
.calculator-container {
font-family: Arial, sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);
}
.calculator-inputs {
display: grid;
gap: 15px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
}
.calculator-inputs button {
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 1rem;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculator-inputs button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 20px;
padding: 15px;
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 4px;
}
.calculator-result p {
margin: 0 0 10px 0;
font-size: 1.1rem;
}
.calculator-result p:last-child {
margin-bottom: 0;
}
Understanding Personal Loan EMIs
A Personal Loan is a type of unsecured loan that individuals can take for a variety of personal needs, such as medical emergencies, home renovations, education, travel, or debt consolidation. Unlike secured loans, personal loans do not require you to pledge any collateral. The repayment of a personal loan is typically done through Equated Monthly Installments (EMIs).
An EMI is a fixed amount that a borrower pays to the lender on a specified date each month, over the loan tenure. This amount includes both the principal loan amount and the interest charged by the lender. Understanding how your EMI is calculated is crucial for effective financial planning.
The EMI is determined by three main factors:
- Principal Loan Amount (P): This is the total amount of money you borrow from the lender.
- Annual Interest Rate (R): This is the rate of interest charged by the lender on the principal amount. It's important to note that the interest rate is usually expressed annually but applied monthly for EMI calculations.
- Loan Tenure (N): This is the duration, usually in years, over which you agree to repay the loan. The EMI calculation converts this tenure into months.
The standard formula used to calculate the EMI is:
$EMI = P \times r \times \frac{(1+r)^n}{(1+r)^n – 1}$
Where:
- P = Principal Loan Amount
- r = Monthly interest rate (Annual interest rate / 12 / 100)
- n = Loan tenure in months (Loan tenure in years * 12)
If the annual interest rate is 0%, the EMI is simply the Principal Loan Amount divided by the number of months.
Using this EMI calculator, you can quickly estimate your monthly repayment amount by entering the loan amount you need, the annual interest rate offered by the lender, and the repayment period. This will help you assess your affordability and choose a loan plan that best suits your financial situation. Remember to compare interest rates from different lenders to secure the most favorable terms.