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 (INR)
• \( R \) — 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 equal monthly payments.

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 INR, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect EMI amount?
A: EMI depends on principal amount, interest rate, and loan tenure. Higher principal/rates increase EMI, while longer tenures reduce EMI.

Q2: Can EMI change during loan tenure?
A: In fixed-rate loans, EMI remains constant. In floating-rate loans, EMI may change if interest rates change.

Q3: How does prepayment affect EMI?
A: Prepayment can either reduce EMI (if tenure remains same) or shorten loan tenure (if EMI remains same).

Q4: Are there other charges besides EMI?
A: Some loans may have processing fees, insurance, or other charges not included in EMI calculation.

Q5: What is amortization schedule?
A: It's a table showing the breakup of each EMI payment into principal and interest components over the loan tenure.