Loan EMI Calculator
Calculate your EMI, interest costs, and repayment schedule
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Your Loan Repayment Details
Monthly Payment (EMI)
Total Interest
Total Payment
Yearly Repayment Schedule
| Year | Principal Paid | Interest Paid | Total Payment | Remaining Balance |
|---|
Understanding Loan Repayment
A loan calculator helps you understand the complete cost of borrowing by calculating your Equated Monthly Installment (EMI) and showing the breakdown of principal and interest payments over the loan term. It provides financial clarity before borrowing.
EMI Calculation Formula
EMI = [P × r × (1 + r)n] / [(1 + r)n - 1]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Loan term in months
Smart Borrowing Tip
A longer loan term reduces your EMI but increases total interest paid. Try to choose the shortest term you can afford to minimize interest costs.
Types of Loans and Their Features
| Loan Type | Interest Rate | Typical Term | Key Features |
|---|---|---|---|
| Personal Loan | 10-24% | 1-5 years | Unsecured, quick disbursal |
| Home Loan | 7-9% | 10-30 years | Secured, tax benefits |
| Car Loan | 8-12% | 3-7 years | Secured, lower rates for new cars |
| Education Loan | 8-14% | 5-10 years | Moratorium period available |
Interest Rate Impact
A 1% difference in interest rate on a $2 million, 20-year home loan can change your total interest by $0.28 million! Always negotiate for the best rate.
Loan Repayment Strategies
To Reduce Interest
- Make prepayments when possible
- Choose shorter loan terms
- Opt for fortnightly instead of monthly payments
- Refinance when rates drop significantly
For Better Management
- Keep EMIs ≤ 40% of monthly income
- Maintain emergency funds for 6-12 EMIs
- Use bonuses/windfalls for prepayments
- Monitor loan statements regularly
Prepayment Strategy
Making just one extra EMI payment each year on a 20-year loan can reduce the term by ~5 years and save ~25% in interest!
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