Question 1

What is EMI?

Accepted Answer

EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month.

Question 2

How is EMI calculated?

Accepted Answer

EMI is calculated using the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is the principal loan amount, R is the monthly interest rate, and N is the number of monthly installments.

Question 3

What factors affect EMI amount?

Accepted Answer

Three main factors affect EMI: Principal amount (loan amount), Interest rate (annual percentage rate), and Tenure (loan duration). Higher principal and interest rate increase EMI, while longer tenure reduces EMI but increases total interest.

Question 4

Can I prepay my loan to reduce EMI?

Accepted Answer

Yes, you can make prepayments to reduce either your EMI amount or loan tenure. Prepayments directly reduce the principal amount, which can significantly reduce the total interest paid over the loan term.

Question 5

What is the difference between reducing and flat interest rates?

Accepted Answer

In reducing balance method, interest is calculated on the outstanding principal amount, so it decreases with each payment. In flat rate method, interest is calculated on the original principal throughout the loan term, making it more expensive.

EMI Calculator

EMI Calculator

What is EMI Calculator?

How EMI Calculation Works

EMI Formula:

Key Benefits:

EMI Calculation Example

Example: ₹50,00,000 Home Loan at 8.5% for 20 Years

Frequently Asked Questions about EMI Calculator

What is EMI?

How is EMI calculated?

What factors affect EMI amount?

Can I prepay my loan to reduce EMI?

What is the difference between reducing and flat interest rates?

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