🧮 Loan / EMI Calculator
Calculate monthly payments, total interest, and discover how prepayments can save you money. Compare scenarios and make informed decisions about your loan.
30 years = 360 months
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❓Frequently Asked Questions
How is EMI calculated for a loan?▼
EMI (Equated Monthly Installment) is calculated using the formula: E = P × r × (1+r)^n / ((1+r)^n – 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of months. This formula ensures equal payments throughout the loan tenure.
What happens if I pay extra every month?▼
Making extra payments towards your loan principal reduces the total interest paid and shortens the loan tenure. Even small additional payments can save significant interest over time. Our calculator shows you exactly how much you can save with prepayments.
What is the reducing balance method?▼
The reducing balance method calculates interest on the outstanding principal after each payment, rather than on the initial loan amount. As you pay down the principal, the interest portion of each EMI decreases while the principal portion increases, resulting in lower total interest paid.