Online EMI Calculator for Personal Loans
Understanding Your Personal Loan EMI
A personal loan is an unsecured loan offered by banks and financial institutions that can be used for various personal needs, such as medical emergencies, home renovations, travel, or consolidating debt. A key aspect of managing a personal loan is understanding its Equated Monthly Installment (EMI).
What is EMI?
EMI stands for Equated Monthly Installment. It is a fixed amount that a borrower pays to the lender on a specified date each month for the entire loan tenure. Each EMI payment comprises both the principal amount and the interest charged on the loan.
How is EMI Calculated?
The EMI for a personal loan is calculated using a specific formula that considers the principal loan amount, the annual interest rate, and the loan tenure. The formula is as follows:
EMI = P × r × (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)
Our EMI calculator simplifies this process for you. By entering the loan amount, annual interest rate, and loan tenure, you can instantly get an estimate of your monthly EMI. This helps you budget effectively and choose a loan that fits your repayment capacity.
Why is EMI Important?
Knowing your EMI in advance is crucial for financial planning. It allows you to:
- Assess your repayment capacity.
- Compare different loan offers from various lenders.
- Avoid financial strain by choosing an affordable EMI.
- Plan your monthly budget accordingly.
Example Calculation:
Let's say you take a personal loan of ₹5,00,000 at an annual interest rate of 12% for a tenure of 5 years.
- Principal Loan Amount (P) = ₹5,00,000
- Annual Interest Rate = 12%
- Monthly Interest Rate (r) = 12% / 12 / 100 = 0.01
- Loan Tenure in Years = 5
- Loan Tenure in Months (n) = 5 * 12 = 60
Using the EMI formula:
EMI = 500000 * 0.01 * (1 + 0.01)^60 / [(1 + 0.01)^60 – 1]
EMI = 500000 * 0.01 * (1.816966987) / [(1.816966987) – 1]
EMI = 9084.83 / 0.816966987
EMI ≈ ₹11,122
So, your monthly EMI would be approximately ₹11,122. This calculator helps you perform such calculations instantly.
function calculateEMI() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTenure = parseFloat(document.getElementById("loanTenure").value);
var resultDiv = document.getElementById("result");
if (isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTenure) || loanAmount <= 0 || interestRate <= 0 || loanTenure <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
var monthlyInterestRate = (interestRate / 12) / 100;
var loanTenureInMonths = loanTenure * 12;
var emi = loanAmount * monthlyInterestRate * Math.pow(1 + monthlyInterestRate, loanTenureInMonths) / (Math.pow(1 + monthlyInterestRate, loanTenureInMonths) – 1);
// Round to 2 decimal places
emi = Math.round(emi * 100) / 100;
// Calculate total interest and total payment
var totalInterest = (emi * loanTenureInMonths) – loanAmount;
var totalPayment = emi * loanTenureInMonths;
resultDiv.innerHTML = "
Your Estimated EMI:
" +
"
Monthly EMI: ₹ " + emi.toLocaleString('en-IN') + "" +
"
Total Interest Payable: ₹ " + Math.round(totalInterest).toLocaleString('en-IN') + "" +
"
Total Payment (Principal + Interest): ₹ " + Math.round(totalPayment).toLocaleString('en-IN') + "";
}
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