LawAccord EMI Calculator
Calculate Your Loan EMI
Loan Summary & Results
Payment Breakdown & Amortization Schedule
This table provides a detailed month-by-month breakdown of your loan repayment, showing exactly how much of your EMI goes towards the principal and interest, and your remaining balance over time. It’s a key tool for understanding your loan’s progress.
| Month | Principal (P) | Interest (I) | Remaining Balance |
|---|
Understand Your Loan & EMI
An **Equated Monthly Installment (EMI)** is a fixed payment made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both the interest and the principal loan amount over a set period. Using a calculator like this one helps you determine the exact amount you’ll need to pay each month, allowing you to plan your finances effectively.
The EMI formula is a powerful mathematical tool that ensures your loan is fully repaid by the end of the term. The formula is:
EMI $= P \times R \times \frac{(1+R)^N}{(1+R)^N-1}$
Where:
- $P$ = Principal Loan Amount (The total amount you are borrowing)
- $R$ = Monthly Interest Rate (Annual Rate / 12 / 100)
- $N$ = Loan Tenure in Months
Frequently Asked Questions (FAQ)
1. What is an EMI?
EMI stands for **Equated Monthly Installment**. It’s a fixed payment amount that a borrower pays to a lender on a monthly basis. The EMI payment includes a portion of both the principal loan amount and the interest on the outstanding loan.
2. How is EMI calculated?
The EMI is calculated based on three main factors: the principal loan amount, the interest rate, and the loan tenure. This calculator uses a standard formula to give you an accurate result, which you can see in the section above.
3. What is an Amortization Schedule?
An amortization schedule provides a complete month-by-month breakdown of your loan repayment. It shows how each of your EMI payments is split between paying off the principal and the interest, and what your remaining balance is after each payment.
4. Can I pre-pay my loan to reduce the total interest paid?
Yes, many loans allow you to pre-pay a portion or the full outstanding amount. Pre-paying can significantly reduce your total interest burden as interest is calculated on the remaining principal. Always check with your lender for any pre-payment fees.
5. How does a down payment affect my EMI?
A down payment directly reduces the total principal amount you need to borrow. A higher down payment leads to a lower principal loan amount, which in turn results in a lower monthly EMI and a smaller total interest paid over the life of the loan.