Loan Payment Calculator
Calculate your monthly payment (EMI) for any loan.
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Understanding Your Loan Payments
A loan is a significant financial commitment, and understanding your monthly payment is the first step toward responsible borrowing. The monthly payment, also known as an Equated Monthly Installment (EMI), is a fixed amount you pay back to the lender each month. This payment covers both the original loan amount (principal) and the cost of borrowing (interest). Use this calculator to see how different loan amounts, interest rates, and tenures will affect your monthly budget.
Frequently Asked Questions (FAQ)
What is a loan EMI?
EMI stands for Equated Monthly Installment. It is the fixed payment you make to a lender each month to repay a loan. Each EMI payment includes a portion of the principal loan amount and a portion of the interest charged.
How are loan payments calculated?
Loan payments (EMIs) are calculated using a standard formula that considers the loan amount (principal), the interest rate, and the loan term (tenure). The formula is: E = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1), where P is the principal, r is the monthly interest rate, and n is the number of months. Our calculator does this for you automatically.
How can I lower my monthly loan payment?
The most common way to lower your monthly loan payment is to choose a longer loan tenure. This spreads the repayment over more months, reducing the amount due each month. However, a longer tenure means you will pay more in total interest over the life of the loan.
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