.calculator-container {
font-family: Arial, sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
background-color: #f9f9f9;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #333;
}
.input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
button {
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
margin-top: 15px;
}
button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
background-color: #e9ecef;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 18px;
text-align: center;
font-weight: bold;
color: #333;
}
function calculateEMI() {
var principal = parseFloat(document.getElementById("loanAmount").value);
var annualRate = parseFloat(document.getElementById("annualInterestRate").value);
var tenure = parseFloat(document.getElementById("loanTenure").value);
if (isNaN(principal) || isNaN(annualRate) || isNaN(tenure) || principal <= 0 || annualRate < 0 || tenure <= 0) {
document.getElementById("result").innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
var monthlyRate = annualRate / 12 / 100;
var numerator = principal * monthlyRate * Math.pow(1 + monthlyRate, tenure);
var denominator = Math.pow(1 + monthlyRate, tenure) – 1;
var emi = numerator / denominator;
if (isNaN(emi) || !isFinite(emi)) {
document.getElementById("result").innerHTML = "Could not calculate EMI. Please check your inputs.";
return;
}
document.getElementById("result").innerHTML = "Your EMI: $" + emi.toFixed(2);
}
Understanding Your Equated Monthly Installment (EMI)
An Equated Monthly Installment (EMI) is a fixed amount paid by a borrower to a lender at a specified date each month. EMIs are typically used to repay loans, such as home loans, car loans, and personal loans. The EMI amount includes both the principal repayment and the interest component.
How is EMI Calculated?
The formula for calculating EMI is as follows:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
* **P** = Principal Loan Amount (the total amount borrowed)
* **R** = Monthly Interest Rate (annual interest rate divided by 12 and then by 100 to convert percentage to decimal)
* **N** = Loan Tenure (the total number of months for which the loan is taken)
Key Components of an EMI
1. **Principal Repayment:** This is the portion of your EMI that directly reduces the outstanding loan amount. In the initial EMIs, the principal component is smaller, and it gradually increases over the loan tenure.
2. **Interest Payment:** This is the portion of your EMI that goes towards paying the interest charged by the lender on the outstanding principal. In the early EMIs, the interest component is larger, and it decreases over time as the principal reduces.
Factors Affecting Your EMI
* **Principal Loan Amount:** A higher principal amount will naturally result in a higher EMI, assuming other factors remain constant.
* **Interest Rate:** The annual interest rate significantly impacts your EMI. A higher interest rate means a larger portion of your payment will go towards interest, thus increasing your EMI.
* **Loan Tenure:** The duration of the loan also plays a crucial role. A longer tenure will lead to lower EMIs because the principal is spread over a more extended period. However, a longer tenure also means you'll end up paying more total interest over the life of the loan.
Example Calculation
Let's consider a loan scenario:
* **Loan Amount (P):** $200,000
* **Annual Interest Rate:** 8.5%
* **Loan Tenure:** 10 years (which is 120 months)
Using the EMI formula:
* Monthly Interest Rate (R) = (8.5 / 12) / 100 = 0.00708333
* Loan Tenure (N) = 120 months
EMI = [200,000 * 0.00708333 * (1 + 0.00708333)^120] / [(1 + 0.00708333)^120 – 1]
EMI = [200,000 * 0.00708333 * (2.31596)] / [2.31596 – 1]
EMI = [3277.78] / [1.31596]
EMI ≈ $2490.79
So, for a $200,000 loan at 8.5% interest for 10 years, your Equated Monthly Installment would be approximately $2490.79. This calculator helps you quickly determine your EMI based on your specific loan parameters.