# EMI Calculator

## Plan your instalments and control your budget effectively using our EMI Calculator for loans.

loan principal amount (₹)
annual interest rate (%)
loan tenure in months

total amount

₹1,03,280

monthly EMI

₹8,607

loan amount

₹1,00,000

interest amount

₹3,280
4.5

Overall rating

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### What is an EMI?

The Equated Monthly Installment, commonly known as EMI, refers to the monthly payment made to a bank or financial institution until the loan is completely repaid. EMI includes both the loan's interest and a portion of the principal amount. The total of the principal and interest is divided by the loan tenure (number of months) of the EMI to determine this fixed monthly payment, which must be paid punctually.

### How to use the EMI Calculator?

EMI represents a monthly payment consisting of the principal loan amount and interest, spread over a specific duration. It's crucial to note that the online EMI calculator method remains consistent across various retail loans such as home loans and car loans. Let's illustrate this with an example:

Imagine X has taken a loan of INR 10 lakh to construct a house. The bank has provided X with a home loan at a yearly interest rate of 7.2% (floating) for a 10-year period. To calculate the monthly EMI, the EMI calculator uses the following formula:

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

Here,

• P: Principal loan amount = INR 10,00,000
• N: Loan tenure in months = 120 months
• R: Monthly interest rate (7.2/12/100) = 0.006

Calculating, EMI = INR 10,00,000 × 0.006 × (1 + 0.006)^120 / ((1 + 0.006)^120 – 1) = INR 11,714.

Consequently, X will pay an EMI of INR 11,714 every month for a decade. In total, the amount X will pay sums up to INR 14,05,702, wherein INR 4,05,702 signifies the total interest paid on the borrowed principal amount.

### Factors affecting your due amount

When preparing to apply for an EMI loan, it's crucial to take specific aspects into account. Depending on your financial situation and ability to repay, you must compute the equated monthly installments (EMI).

Here are a few things to consider:

• Term of the loan
• Rate of interest
• Total amount of the loan

### Advantages of the Stack Wealth EMI Calculator

Benefits of the Stack EMI Calculator:

1. Accurate Planning: Enables precise financial planning by calculating EMI accurately.
2. Financial Transparency: Provides clear, transparent breakdowns of monthly installments for better understanding.
3. Quick and Convenient: Offers fast and hassle-free EMI calculations, saving users time and effort.
4. Informed Decision-Making: Empowers users to compare, analyze, and make well-informed financial decisions regarding loan options.

### Different types of EMI

The Stack Wealth EMI calculator can be used to calculate various kinds of EMI for example:

• Home Loan EMI calculator: Calculate your home loan EMI to plan your housing expenses.
• Car Loan EMI calculator: Determine your car loan EMI and budget for your dream car.
• Bike Loan EMI calculator: Determine your bike loan EMI and budget for your dream bike.
• Personal Loan EMI Calculator: Calculate personal loan EMIs for various financial needs.
• Education Loan EMI calculator: Plan for educational expenses with education loan EMI calculations.
• Loan Against Property EMI calculator: Calculate EMI for loans against property and make informed decisions for leveraging your assets.

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