Year-wise Breakdown
| Year | Principal Paid | Interest Paid | Balance |
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About EMI Calculator
An EMI (Equated Monthly Installment) calculator helps you determine the monthly payment you need to make to repay a loan over a specified period. It considers the principal amount, interest rate, and loan tenure to calculate the fixed monthly payment.
Formula Used
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where P = Principal Amount, r = Monthly Interest Rate, n = Number of Months
Tips & Best Practices
- Lower interest rates result in lower EMIs
- Longer tenure reduces EMI but increases total interest paid
- Making prepayments can reduce your overall interest burden
- Compare EMIs across different banks before taking a loan
- Maintain a good credit score for better interest rates
Frequently Asked Questions
What is EMI?
EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each month, used to pay off both interest and principal each month.
How is EMI calculated?
EMI is calculated using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is principal, r is monthly interest rate, and n is number of months.
Can I reduce my EMI?
Yes, you can reduce EMI by negotiating a lower interest rate, increasing the loan tenure, or making a larger down payment to reduce the principal.
What happens if I miss an EMI?
Missing an EMI can result in late payment fees, negative impact on credit score, and in severe cases, legal action from the lender.