Mortgage Rate Comparison Calculator Uk

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Personal Loan EMI Calculator

Calculate your monthly installments instantly

Monthly EMI $0.00
Total Interest $0.00
Total Repayment $0.00

Understanding Your Personal Loan EMI

A Personal Loan Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.

How the Calculation Works

The mathematical formula used for calculating EMI is:

EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
  • P: Principal loan amount (the actual amount borrowed).
  • R: Rate of interest per month (Annual rate / 12 / 100).
  • N: Number of monthly installments (Tenure).

Example Calculation

If you take a personal loan of $10,000 at an annual interest rate of 12% for a period of 24 months:

  • Monthly Interest Rate (R) = 12 / (12 * 100) = 0.01
  • Tenure (N) = 24 months
  • Calculated Monthly EMI = $470.73
  • Total Interest Paid = $1,297.63
  • Total Repayment Amount = $11,297.63

Factors That Affect Your EMI

  1. Loan Amount: Higher principal leads to higher EMI payments.
  2. Interest Rate: Even a 0.5% difference can significantly change your total interest paid.
  3. Loan Tenure: Shorter tenures result in higher EMIs but lower total interest. Longer tenures lower the EMI but increase the total interest burden over time.
function calculateEMI() { var principal = parseFloat(document.getElementById('loan_amount').value); var annualRate = parseFloat(document.getElementById('interest_rate').value); var tenureMonths = parseFloat(document.getElementById('loan_tenure').value); if (isNaN(principal) || principal <= 0) { alert("Please enter a valid loan amount."); return; } if (isNaN(annualRate) || annualRate <= 0) { alert("Please enter a valid interest rate."); return; } if (isNaN(tenureMonths) || tenureMonths <= 0) { alert("Please enter a valid tenure in months."); return; } var monthlyRate = annualRate / 12 / 100; // EMI Formula: [P x R x (1+R)^N] / [(1+R)^N – 1] var emi = (principal * monthlyRate * Math.pow(1 + monthlyRate, tenureMonths)) / (Math.pow(1 + monthlyRate, tenureMonths) – 1); var totalPayment = emi * tenureMonths; var totalInterest = totalPayment – principal; document.getElementById('monthly_emi').innerHTML = "$" + emi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('total_interest').innerHTML = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('total_payment').innerHTML = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('emi_result_section').style.display = 'block'; }

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