EMI Calculator - Equated Monthly Instalment for Home, Personal Loan

What is EMI?

EMI is the short form of “Equated Monthly Instalment”. EMI includes the repayment of principal as well as interest amount on your loan. EMI primarily depends upon Amount, Rate of interest and Time period. The longer the time period and lesser would be the EMI but you will end up paying more interest to your lender

What is EMI Calculator?

Fintra has come with a very effective tool so that you can calculate your EMI easily depending on various factors like rate of interest, tenure of the loan, etc. This will help you calculate the loan instalment i.e. EMI towards your Home loan, Car loan, Personal loan or any other loans.

How to use Fintra's EMI Calculator?

All you need to do is input the following to caclulate your EMI:

Loan Amount: Enter the Loan Amount that you need
Interest Rate (% per annum): Input prevailing Interest Rate that bank is charging
Loan Tenure (in years): Enter your desired loan term for which you wish to avail the loan. A longer tenure increases the chances of getting loan approval.

What are the benefits of using Fintra’s EMI calculator?

Helps you decide the EMI accurately without any errors and helps you make a desired plan that how you intend to pay back the EMI.
Saves your time which you would have wasted doing a long calculation to calculate the EMI amount which is a very exhaustive and time-consuming process.
You can access our EMI calculator anytime anywhere on our website or from our app.

How is EMI calculated?

The formula used to calculate the EMI is

EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]

Where P = Loan amount

R = Rate of interest

N = Tenure in number of months

Using the formula, you now have an idea that higher the loan amount or the rate of interest higher the EMI. Well the EMI payments decrease with the increase in tenure. But why get into this much of hassle when you can do it all much more efficiently using an EMI calculator.

How can you determine your EMI?

Using an EMI calculator that you can use to calculate the EMI amount which will be your monthly pay-out and then you can plan your budget accordingly. Nowadays you can buy almost everything on EMI. Depending on the loan one chooses there are different EMI calculators like

What are the factors that your EMI is dependent upon?

Amount borrowed - EMI is dependent on the amount and the interest is also calculated on this principal amount.
Rate of Interest- It is the Rate at which interest will be computed. It is advisable to check the rate of interest of different banks before making a final choice.
Tenure of loan- It refers to the total amount of Time in which the repayment will be done.
Monthly resting period – Resting period is the regular interval at which the loan amount balance is recalculated. For example, in the case of a monthly rest, the balance loan amount is recalculated and decreases every month.

Other Factors affecting EMI

If the borrower pays the loan by making a pre-payment through the tenure of the loan, either the subsequent EMI’s get reduced or the tenure is reduced or even both can happen. In the opposite case if the borrower skips an EMI then the EMI’s increase or the tenure increases or even both.
Also, in case of floating rate loans, if the rate of interest decreases the EMI reduces, the tenure decreases, or even both. On an increase in the rate of interest the reverse happens.

Flexible loan repayment option

Some banks offer flexible repayment of loans option in which the EMI’s vary over time. In step-up loans, you pay lower EMI in starting which eventually increases. In cases of step-down loans, you pay higher EMI in starting which decreases over the period.