Loan EMI Calculator
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About Our Loan EMI Calculator
Understanding your monthly loan payment before committing to borrowing is essential for sound financial planning. Our general-purpose Loan EMI Calculator calculates your equated monthly installment for any type of loan, showing you the exact monthly payment, total interest cost, and the powerful impact of extra payments. Whether it's an education loan, business loan, or any other borrowing, this calculator provides the insights you need to make informed decisions.
With flexible tenure options, processing fee calculations, and the ability to model extra monthly payments from any starting month, you can explore multiple scenarios instantly. The calculator also breaks down your payment schedule so you understand exactly how principal and interest components shift over time. All calculations remain completely private in your browser—no data transmission or storage of any kind.
Frequently Asked Questions
What is EMI and why does it matter?
EMI (Equated Monthly Installment) is your fixed monthly loan payment. It's crucial because it shows exactly what your budget impact will be. Knowing EMI helps you determine affordability before applying for loans and compare different borrowing options.
How is EMI calculated mathematically?
EMI = P × r × (1+r)^n / ((1+r)^n - 1) where P = principal, r = monthly interest rate, n = number of months. This formula ensures equal payments throughout the tenure, with interest front-loaded and principal back-loaded.
What's the impact of changing tenure?
Longer tenure = lower EMI but much higher total interest. Shorter tenure = higher EMI but lower total interest. For example, 5 years vs 7 years might reduce EMI by 30% but increase total interest by 20%. Use this calculator to find your balance.
What does processing fee mean?
Processing fee is a lender charge (typically 0.5-2%) for loan origination. It can be paid upfront or financed into the loan amount. This calculator shows impact either way. Pay upfront if possible to avoid interest on the fee itself.
How much can I save with extra payments?
Extra payments directly reduce principal, saving exponential interest. Even $50/month extra can save 10-20% of total interest. The calculator shows exact savings for your scenario. Start extra payments from month 1 for maximum impact.
Can I start extra payments later in the loan?
Yes. The calculator lets you specify when extra payments start. Starting from month 1 saves most interest. Starting later saves less but still saves something. Even starting in year 5 provides meaningful savings.
How do interest rates vary by loan type?
Secured loans (cars, homes): 3-8%. Unsecured loans (personal): 10-18%. Business loans: 6-15%. Education loans: 4-9%. Your actual rate depends on credit score, down payment, tenure. Get rate quotes before finalizing loan decisions.
Should I prepay if I have investment opportunities?
Only if investment return exceeds loan rate. If loan is 8% and investments average 5%, prepay the loan. If investments average 12%, you might invest instead. Calculate using this tool for exact break-even analysis.
How does the EMI split between principal and interest?
Early payments: mostly interest, small principal. Late payments: mostly principal, small interest. For a $100,000 loan at 8% over 20 years: first payment ~$67 interest/$193 principal; last payment ~$2 interest/$258 principal. Check breakdown for your loan.
Is my data safe with this calculator?
Completely safe. All calculations happen in your browser. No data is sent to servers, stored, or accessed. Your principal, rate, EMI, and financial information remain completely private and secure.