How to Use the Loan EMI Calculator

The Loan EMI Calculator is a powerful tool designed to help businesses and individuals calculate Equated Monthly Instalments (EMI) for loans such as business loans, personal loans, or equipment financing. This calculator ensures accurate repayment planning and helps you choose the best loan options. Follow these steps to use the calculator:

Step 1: Enter Loan Amount

• Input the total amount borrowed in the “Loan Amount (₹)” field.
• For example:
  • If you are borrowing ₹500,000, enter 500000.
• Ensure the loan amount reflects the principal amount you intend to borrow.

Step 2: Enter Annual Interest Rate

• Input the yearly interest rate charged on the loan in the “Annual Interest Rate (%)” field.
• For example:
  • If the annual interest rate is 10%, enter 10.
• The interest rate is typically provided by the lender and may vary based on the loan type and borrower’s creditworthiness.

Step 3: Enter Loan Tenure

• Input the duration of the loan in months in the “Loan Tenure (Months)” field.
• For example:
  • If the loan tenure is 5 years, enter 60 (5 years × 12 months).
• The loan tenure determines the repayment period and affects the monthly EMI amount.

Step 4: Calculate EMI

• Click the “Calculate EMI” button to generate the result.
• The calculator will display:
  • Monthly EMI : The fixed amount payable every month.
  • Total Payment : The total amount paid over the loan tenure, including both principal and interest.
  • Total Interest Paid : The total cost of borrowing the loan.

Understanding the Results

• Monthly EMI : The fixed amount you need to pay every month to repay the loan.
• Total Payment : The sum of all EMIs paid over the loan tenure.
• Total Interest Paid : The total cost of borrowing the loan, which is the difference between the total payment and the loan amount.
• Example:
  • If the loan amount is ₹500,000, the annual interest rate is 12%, and the loan tenure is 36 months:
    • Monthly EMI : ₹16,607.15
    • Total Payment : ₹597,857.40
    • Total Interest Paid : ₹97,857.40