# EMI Calculater

### What is EMI?

The Equated Monthly Installment, or EMI, is the monthly payment made to the bank or other financial institution until the loan is fully paid off. It includes loan interest as well as a portion of the principal amount to be repaid. The sum of the principal and interest is divided by the loan's tenure, or the number of months it must be repaid. This sum must be paid on a monthly basis. The interest component of the EMI would be higher in the beginning and gradually decrease with each payment. The exact percentage allocated to principal payment is determined by the interest rate. While your monthly EMI payment will remain constant, the proportion of principal and interest components will change over time. With each payment, you'll pay more toward the principal and less toward interest.

### How Does an EMI Calculator Work?

Our EMI Calculator is simple to use, easy to understand, and quick to use, with colourful charts and instant results. Using this calculator, you can calculate the EMI for a home loan, a car loan, a personal loan, an education loan, or any other fully amortising loan.

##### In the EMI Calculator, enter the following information:

- The principal loan amount that you wish to obtain (rupees)
- Loan duration (months or years)
- Interest rate (percentage)
- EMI in arrears OR EMI in advance (for car loan only)

Adjust the values in the EMI calculator form using the slider. If you need to enter more precise values, you can do so directly in the relevant boxes above. The EMI calculator will recalculate your monthly payment (EMI) amount as soon as you change the values using the slider (or hit the 'tab' key after entering the values directly in the input fields).

A pie chart depicts the breakdown of total payment (i.e., total principal vs. total interest payable). It shows the percentage of total interest versus principal in the sum of all payments made on the loan. The payment schedule table is displayed, along with a chart showing the interest and principal components paid each year for the entire loan duration. The interest portion of each payment is deducted, and the remainder is applied to the principal balance. During the first year of the loan, a large portion of each payment is devoted to interest. With the passage of time, larger portions of the principal are paid down. The payment schedule also displays the intermediate outstanding balance for each year, which is carried over to the following year.