EMI Calculator

What is EMI?

EMI (Equated Monthly Installment) indicates the amount that you need to pay every month to repay your loan. The total EMI you pay throughout the tenure of the loan will include the principal borrowed amount as well as the interest. During the first few years of your loan tenure, a major chunk of the EMI will include the interest amount. However, the principal amount will make up the majority of the EMI amount toward the end of the loan tenure. The amount of time for which you will have to continue paying the EMI will depend on the loan amount.

How EMI Calculator Works?

In order to calculate EMI you will have to enter the total loan amount which you want to borrow, time duration of the loan, and the interest rate. The basic formula to calculate EMI is -

EMI = P x r x (1+r)^n/((1+r)^n -1)

The above variables stands for -

EMI Calculation Example

Say, you have taken a personal loan of Rs. 4 lakhs for 3 years at an interest rate of 20% p.a. Firstly, we need to convert the annual rate of interest into a monthly rate & also the loan tenure into months. To calculate the monthly interest rate, we have to divide the annual interest rate by the number of months in a year, i.e. 20/12 =1.66% per month The 3-year loan tenure must also be converted into months before putting it into the formula i.e. 36 months Now we have the three variables with us which we can integrate into the formula as follows -

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

EMI = [4,00,000 x1.66/100 x (1+1.66/100) ^ 36 / [(1+1.66/100) ^ 36 -1)
EMI = Rs. 14,865

Total Payment = Principal Amount + Total Rate of Interest

= 14, 865 + 1,35,156
= 5,35, 156

How to Use IIFL's EMI Calculator

The IIFL EMI calculator is a simple and convenient tool. You will have to follow a few basic steps to receive the right EMI amount as the output. The different steps that you need to follow are as follows:

Factors Affecting Your EMI

The different factors that will influence the EMI amount payable for your loan are as follows: