Interest Rate on Auto Loan Calculator

by

Personal Loan EMI Calculator

Monthly EMI

$0.00

Total Interest

$0.00

Total Repayment (Principal + Interest)

$0.00

How to Use the Personal Loan EMI Calculator

Planning your finances is crucial when taking out a personal loan. Our Personal Loan EMI Calculator helps you estimate your monthly financial commitment before you sign any agreement. By adjusting the loan amount, interest rate, and tenure, you can find a repayment plan that fits your budget perfectly.

Understanding the EMI Formula

EMI stands for Equated Monthly Installment. The formula used to calculate this is:

E = P x r x (1 + r)^n / ((1 + r)^n – 1)
  • P: Principal loan amount
  • r: Monthly interest rate (Annual rate / 12 / 100)
  • n: Loan tenure in months (Years * 12)

Factors That Affect Your Personal Loan EMI

Several factors influence how much you will pay each month:

  1. Credit Score: A higher credit score often leads to lower interest rates, significantly reducing your EMI.
  2. Loan Tenure: Choosing a longer tenure reduces your monthly EMI but increases the total interest paid over the life of the loan.
  3. Principal Amount: The higher the amount borrowed, the higher the EMI and total interest.
  4. Interest Rate Type: Fixed rates stay the same, while floating rates may change based on market conditions.

Personal Loan Repayment Example

If you borrow $10,000 at an annual interest rate of 10.5% for a tenure of 5 years:

  • Your Monthly EMI would be approximately $214.94.
  • The total interest paid over 5 years would be $2,896.33.
  • The total amount repaid to the lender would be $12,896.33.
function calculateLoanEMI() { var principal = parseFloat(document.getElementById('loanAmount').value); var annualRate = parseFloat(document.getElementById('interestRate').value); var years = parseFloat(document.getElementById('loanTenure').value); if (isNaN(principal) || isNaN(annualRate) || isNaN(years) || principal <= 0 || annualRate <= 0 || years <= 0) { alert("Please enter valid positive numbers for all fields."); return; } var monthlyRate = annualRate / 12 / 100; var totalMonths = years * 12; // EMI formula: [P x r x (1+r)^n] / [(1+r)^n-1] var emi = (principal * monthlyRate * Math.pow(1 + monthlyRate, totalMonths)) / (Math.pow(1 + monthlyRate, totalMonths) – 1); var totalRepayment = emi * totalMonths; var totalInterest = totalRepayment – principal; document.getElementById('monthlyEMI').innerText = "$" + emi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalInterest').innerText = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalPayment').innerText = "$" + totalRepayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultsArea').style.display = "block"; }

Leave a Comment