EMI Calculator
Frequently Asked Questions
An EMI (Equated Monthly Installment) calculator helps you estimate the monthly installment amount you need to pay for a loan based on the loan amount, interest rate, and tenure.
EMI is calculated using the formula:
EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1}
Where:
- P = Loan Amount
- r = Monthly Interest Rate (Annual Interest Rate ÷ 12 ÷ 100)
- n = Loan Tenure (in months)
Your EMI depends on:
- Loan amount
- Interest rate
- Loan tenure
- Type of interest (fixed or Reducing )
- Fixed Interest Rate Loans: EMI remains the same throughout the tenure.
- Reducing Interest Rate Loans: EMI may change based on fluctuations in interest rates.
Yes, most lenders allow prepayment. You can either:
- Reduce the EMI amount while keeping the tenure the same.
- Reduce the loan tenure while keeping the EMI the same.
No, GST is not charged on loan EMI. However, GST applies to loan processing fees, prepayment charges, and other services.