1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes to a lender at a specified date each calendar month. It's used for Beyond Bank loans to determine monthly repayment amounts.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( R \) — Monthly interest rate (annual rate divided by 12, as decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for both principal and interest components of the loan, with interest being front-loaded in the initial payments.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan finances, and compare different loan options before committing.

4. Using the Calculator

Tips: Enter principal amount in AUD, annual interest rate in percentage, and loan tenure in months. All values must be valid (principal > 0, rate > 0, tenure ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What's included in the EMI payment?
A: Each EMI includes both principal repayment and interest charges for that period.

Q2: How does tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Is EMI fixed for the entire loan period?
A: For fixed-rate loans, EMI remains constant. For variable-rate loans, EMI may change with interest rate fluctuations.

Q4: Can I prepay my Beyond Bank loan?
A: Prepayment options depend on your loan agreement. Some loans allow prepayment with or without charges.

Q5: How accurate is this calculator?
A: This provides standard EMI calculation. Final EMI may include processing fees or other charges as per your loan agreement.