EMI Calculator (Loan Repayment)
.calculator-container {
font-family: sans-serif;
max-width: 500px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
box-shadow: 0 2px 5px rgba(0,0,0,0.1);
}
.calculator-container h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.form-group {
margin-bottom: 15px;
display: flex;
flex-direction: column;
}
.form-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.form-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calculator-container button {
display: block;
width: 100%;
padding: 12px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 20px;
padding: 15px;
background-color: #e9ecef;
border-radius: 4px;
text-align: center;
font-size: 18px;
color: #333;
min-height: 50px; /* Ensure space for results */
display: flex;
justify-content: center;
align-items: center;
}
.calculator-result p {
margin: 0;
}
function calculateEMI() {
var principal = parseFloat(document.getElementById("principalAmount").value);
var annualRate = parseFloat(document.getElementById("annualInterestRate").value);
var tenureMonths = parseFloat(document.getElementById("loanTenureMonths").value);
var resultDiv = document.getElementById("result");
if (isNaN(principal) || isNaN(annualRate) || isNaN(tenureMonths) || principal <= 0 || annualRate < 0 || tenureMonths <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
var monthlyRate = annualRate / 12 / 100;
var emi;
if (monthlyRate === 0) {
emi = principal / tenureMonths;
} else {
emi = principal * monthlyRate * Math.pow(1 + monthlyRate, tenureMonths) / (Math.pow(1 + monthlyRate, tenureMonths) – 1);
}
var totalPayment = emi * tenureMonths;
var totalInterest = totalPayment – principal;
resultDiv.innerHTML =
"Your Monthly EMI:
₹ " + emi.toFixed(2) + "" +
"Total Payment:
₹ " + totalPayment.toFixed(2) + "" +
"Total Interest Payable:
₹ " + totalInterest.toFixed(2) + "";
}
Understanding EMI and Loan Repayment
An Equated Monthly Installment (EMI) is a fixed amount that a borrower pays to a lender at a specified date each month. EMIs are commonly used for home loans, car loans, personal loans, and other types of secured and unsecured loans. The EMI amount is calculated based on the principal loan amount, the annual interest rate, and the loan tenure (duration).
The formula for calculating EMI is:
EMI = P * r * (1 + r)^n / ((1 + r)^n – 1)
Where:
* **P** = Principal loan amount
* **r** = Monthly interest rate (annual interest rate divided by 12 and then by 100 to convert percentage to decimal)
* **n** = Loan tenure in months
**Key Components of EMI Calculation:**
1. **Principal Loan Amount (P):** This is the total amount of money you borrow from the lender.
2. **Annual Interest Rate:** This is the yearly rate charged by the lender on the loan amount. For EMI calculation, this is converted into a monthly rate.
3. **Loan Tenure (n):** This is the total duration over which you will repay the loan, typically expressed in months or years.
**How EMI Works:**
Each EMI payment consists of two parts: a portion that goes towards repaying the principal and a portion that goes towards paying the interest. In the initial months of the loan, a larger part of your EMI goes towards interest, and a smaller part reduces the principal. As the loan progresses, this ratio shifts, with more of your EMI going towards reducing the principal.
**Example Calculation:**
Let's consider a loan scenario:
* **Loan Amount (P):** ₹ 500,000 (Fifty Lakhs)
* **Annual Interest Rate:** 8.5%
* **Loan Tenure:** 20 years (which is 240 months)
Using the EMI calculator above with these inputs:
* **Monthly Interest Rate (r):** 8.5 / 12 / 100 = 0.0070833
* **Loan Tenure (n):** 240 months
The calculator will compute an EMI of approximately **₹ 4,191.76**.
* **Total Payment:** ₹ 4,191.76 * 240 = ₹ 1,006,022.40
* **Total Interest Payable:** ₹ 1,006,022.40 – ₹ 500,000 = ₹ 506,022.40
This means over 20 years, you will pay back the original loan amount plus a significant amount in interest. Understanding your EMI helps in financial planning and choosing a loan that fits your repayment capacity. Always compare interest rates and loan terms from different lenders to secure the best possible deal.