1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over its term with interest.

3. Importance of EMI Calculation

Details: Knowing your EMI helps in financial planning, comparing loan offers, and determining loan affordability before borrowing.

4. Using the Calculator

Tips: Enter principal amount in PHP, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in the EMI payment?
A: EMI includes both principal repayment and interest charges for that month.

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

Q3: Are there other charges not included in EMI?
A: Some loans may have processing fees, insurance, or other charges not included in EMI calculation.

Q4: Can I prepay my loan to reduce interest?
A: Many banks allow prepayment which can reduce total interest, though some charge prepayment penalties.

Q5: How accurate is this calculator?
A: This provides standard EMI calculation. Actual EMI may vary slightly based on bank's rounding policies.