A Personal Loan EMI (Equated Monthly Installment) is a fixed amount that you pay to your lender every month on a specific date for the duration of your loan tenure. This payment includes both the principal amount you borrowed and the interest charged by the lender. EMIs are designed to make loan repayment manageable by spreading the cost over a longer period.
How is your Personal Loan EMI Calculated?
The calculation of your EMI is based on three primary factors: the principal loan amount, the annual interest rate, and the loan tenure (duration). The standard formula used is:
EMI = P x R x (1+R)N / [(1+R)N-1]
Where:
P = Principal Loan Amount (the total amount you borrow).
R = Monthly Interest Rate. This is calculated by dividing the annual interest rate by 12 (e.g., if the annual rate is 12%, R = 12% / 12 = 1% or 0.01).
N = Number of monthly installments (the loan tenure in months).
Our calculator simplifies this complex formula into a quick, easy-to-understand result, showing you your expected monthly payment, the total interest you'll pay over the loan's life, and the total amount you will repay.
Key Factors Influencing Your EMI:
Loan Amount (P): A larger principal amount will naturally result in a higher EMI, assuming other factors remain constant.
Interest Rate (R): A higher interest rate significantly increases your EMI. Even a small percentage point difference can impact your monthly payments and the total interest paid over time.
Loan Tenure (N): Opting for a longer tenure will lower your EMI amount, making it more affordable on a monthly basis. However, this also means you will pay more interest in total over the life of the loan. Conversely, a shorter tenure results in a higher EMI but a lower total interest payout.
When to Use This Calculator:
Planning a New Loan: Estimate your monthly payment before applying for a personal loan to see if it fits your budget.
Comparing Offers: Use it to compare the EMIs offered by different lenders for similar loan amounts and tenures.
Evaluating Affordability: Determine how much you can realistically borrow based on your current income and monthly expenses.
Understanding Loan Costs: Get a clear picture of the total interest you'll pay and the overall cost of borrowing.
Using this calculator empowers you to make informed financial decisions regarding personal loans. Always ensure you can comfortably manage the EMI payments before committing to a loan.
function calculateEMI() {
var principal = parseFloat(document.getElementById("loanAmount").value);
var annualRate = parseFloat(document.getElementById("annualInterestRate").value);
var tenure = parseFloat(document.getElementById("loanTenureMonths").value);
var resultSection = document.getElementById("resultSection");
var monthlyEMIElement = document.getElementById("monthlyEMI");
var totalPaymentElement = document.getElementById("totalPayment");
var totalInterestPaidElement = document.getElementById("totalInterestPaid");
if (isNaN(principal) || isNaN(annualRate) || isNaN(tenure) || principal <= 0 || annualRate < 0 || tenure 0) {
emi = principal * monthlyRate * Math.pow(1 + monthlyRate, tenureInMonths) / (Math.pow(1 + monthlyRate, tenureInMonths) – 1);
} else {
emi = principal / tenureInMonths; // Simple division if interest rate is 0
}
var totalPayment = emi * tenureInMonths;
var totalInterest = totalPayment – principal;
monthlyEMIElement.innerHTML = '₹ ' + emi.toFixed(2);
totalPaymentElement.innerHTML = 'Total Amount Payable: ₹ ' + totalPayment.toFixed(2);
totalInterestPaidElement.innerHTML = 'Total Interest Payable: ₹ ' + totalInterest.toFixed(2);
resultSection.style.display = "block";
}