An Equated Monthly Installment (EMI) is a fixed amount paid by a borrower to a lender at a specified date each month. EMIs are used to repay both the principal amount borrowed and the interest charged on that loan. Most loans, including personal loans, home loans, and car loans, are repaid through EMIs.
The calculation of your EMI for a personal loan depends on three key factors:
Loan Amount (P): This is the principal amount you borrow from the lender.
Annual Interest Rate (R): This is the rate of interest charged by the lender on the loan amount, expressed annually.
Loan Tenure (N): This is the duration, usually in years or months, over which you agree to repay the loan.
n = Loan Tenure in Months (Loan Tenure in Years × 12)
Our calculator automates this complex calculation for you, providing instant results based on the inputs you provide. Understanding these components helps you make informed decisions about borrowing and repayment.
Why Use a Personal Loan EMI Calculator?
Planning: It helps you estimate your monthly financial commitment, allowing you to budget effectively and ensure you can afford the repayment.
Comparison: You can compare different loan offers from various lenders by inputting varying interest rates and tenures to see which option is most affordable.
Affordability Check: It allows you to determine the maximum loan amount you can borrow based on your desired EMI.
Transparency: It provides a clear breakdown of how much of your payment goes towards principal and how much towards interest over the loan's life.
Example: If you take a personal loan of ₹5,00,000 at an annual interest rate of 12% for a tenure of 5 years (60 months), your EMI would be approximately ₹11,100. Over the 5 years, you would pay roughly ₹1,66,000 in total interest and ₹6,66,000 in total payment.
Using this calculator is a crucial step in responsible borrowing. It empowers you with the knowledge to select the right loan amount, interest rate, and tenure that best suits your financial situation.
function calculateEMI() {
var principal = parseFloat(document.getElementById('loanAmount').value);
var annualRate = parseFloat(document.getElementById('annualInterestRate').value);
var tenureYears = parseInt(document.getElementById('loanTenure').value);
var resultDiv = document.getElementById('result');
var emiValueSpan = document.getElementById('emi-value');
var totalInterestSpan = document.getElementById('totalInterest-value');
var totalPaymentSpan = document.getElementById('totalPayment-value');
if (isNaN(principal) || isNaN(annualRate) || isNaN(tenureYears) || principal <= 0 || annualRate <= 0 || tenureYears <= 0) {
alert("Please enter valid positive numbers for all fields.");
resultDiv.style.display = 'none';
return;
}
var monthlyRate = annualRate / 12 / 100;
var tenureMonths = tenureYears * 12;
var emi = (principal * monthlyRate * Math.pow(1 + monthlyRate, tenureMonths)) / (Math.pow(1 + monthlyRate, tenureMonths) – 1);
var totalPayment = emi * tenureMonths;
var totalInterest = totalPayment – principal;
emiValueSpan.innerText = '₹ ' + emi.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
totalInterestSpan.innerText = '₹ ' + totalInterest.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
totalPaymentSpan.innerText = '₹ ' + totalPayment.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
resultDiv.style.display = 'block';
}