# EMI Calculator

₹ 1 Lakh
₹ 2 Crore

1 Years
30 Years

#### Interest rate

5 %
25 %

EMI
₹ 5,510

Principal Amt.
₹ 3,00,000

Interest Payable
₹ 4,93,415

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#### What is EMI?

EMI (Equated Monthly Installment) indicates the amount that you need to pay every month to repay your loan. The total EMI you pay throughout the tenure of the loan will include the principal borrowed amount as well as the interest. During the first few years of your loan tenure, a major chunk of the EMI will include the interest amount. However, the principal amount will make up the majority of the EMI amount toward the end of the loan tenure. The amount of time for which you will have to continue paying the EMI will depend on the loan amount.

#### How EMI Calculator Works?

In order to calculate EMI you will have to enter the total loan amount which you want to borrow, time duration of the loan, and the interest rate. The basic formula to calculate EMI is -

EMI = P x r x (1+r)^n/((1+r)^n -1)

The above variables stands for -

• P stands for the amount that you want to borrow.
• R stands for the rate of interest applicable on the loan amount on a monthly basis.
• N stands for the tenure of the loan repayment.

#### EMI Calculation Example

Say, you have taken a personal loan of Rs. 4 lakhs for 3 years at an interest rate of 20% p.a. Firstly, we need to convert the annual rate of interest into a monthly rate & also the loan tenure into months. To calculate the monthly interest rate, we have to divide the annual interest rate by the number of months in a year, i.e. 20/12 =1.66% per month The 3-year loan tenure must also be converted into months before putting it into the formula i.e. 36 months Now we have the three variables with us which we can integrate into the formula as follows -

EMI = [P x R x (1+R)^N]/[(1+R)^ N-1]

EMI = [4,00,000 x1.66/100 x (1+1.66/100) ^ 36 / [(1+1.66/100) ^ 36 -1)
EMI = Rs. 14,865

Total Payment = Principal Amount + Total Rate of Interest

= 14, 865 + 1,35,156
= 5,35, 156

#### How to Use IIFL's EMI Calculator

The IIFL EMI calculator is a simple and convenient tool. You will have to follow a few basic steps to receive the right EMI amount as the output. The different steps that you need to follow are as follows:

• Step 1 : Open the IIFL loan EMI calculator page.
• Step 2 : Next, pick the type of loan for which you want to calculate the EMI and proceed to that section.
• Step 3 : Provide all the details in the respective spaces, including your loan amount, tenure, and interest rate.
• Step 4 : Check whether you have entered all the information correctly because inaccurate details lead to faulty results.
• Step 5 : The monthly EMI calculator will instantly display the results in front of you.

#### Factors Affecting Your EMI

The different factors that will influence the EMI amount payable for your loan are as follows:

• Principal Amount : The total amount you borrow will impact the EMI. When the borrowed amount is high, your EMI amount is also likely to be on the higher side. The amount that you can borrow from the lender will depend on your credit score, repayment history, income, and other factors. Usually, maintaining a good score makes you eligible for a higher principal amount.
• Loan Tenure : The duration of the loan can also impact the EMI amount. If you choose a short loan tenure, the EMI will be high. But, the EMI will be shorter with a longer loan tenure. Meanwhile, a long tenure will also mean that you have to pay a high interest rate. Therefore, if the interest rate is too high for a long tenure, you should try to go for a shorter tenure.
• Interest Rate : Lenders charge an interest rate on the principal amount, which affects the EMI. A high-interest rate will increase the EMI amount. If you opt for a fixed interest rate, the EMI will remain the same throughout the tenure. But a floating interest rate will mean that your EMI amount keeps changing according to the prevailing rates in the market. In case you opt for the hybrid interest rate, your EMI will remain fixed for a certain period. After that, your interest rate will depend on market fluctuations and your EMI amount will be affected accordingly.
• Prepayment : Making a prepayment can help reduce the EMI amount significantly. But check whether there is any prepayment charge. Before proceeding with the prepayment, you need to ensure that the prepayment fee is lower than your total EMI amount.

#### Types of EMI Calculator

The different types of EMI calculators are as follows:

###### Home Loan EMI Calculator

A home loan EMI calculator is specifically designed for people purchasing a home. This calculator will ensure that borrowers know how much they have to pay every month after the purchase of their dream home.

###### Car Loan EMI Calculator

If you are planning to get your own ride, a car loan EMI calculator can help. You will be able to pick the car model you can afford after determining the EMI that you need to bear every month.

###### Personal Loan EMI Calculator

Personal loans are extremely beneficial and help you meet a plethora of financial needs. A personal loan EMI calculator will allow you to manage your finances properly to repay the loan on time.

###### Loan Against Property EMI Calculator

If you are taking a loan against property, you are providing collateral. Leverage a loan against property EMI calculator to understand how much you need to pay every month to repay the loan and get back the collateral from the lender.

#### How Can an EMI Calculator Help You

An EMI calculator is extremely helpful when you don't know how to calculate EMI. It will help you instantly determine the EMI amount for different types of loans. Therefore, an EMI interest calculator plays a major role in helping you plan your finances.

#### Advantages of Using IIFL's EMI Calculator

The different benefits of using the IIFL monthly EMI calculator are as follows:

###### Free Tool

The IIFL EMI calculator lets you determine the EMIs for different types of loans for free. Anyone can use the EMI interest calculator on our site as many times as they want.

###### Simple to Use

The IIFL EMI calculator is a simple and straightforward tool. You will only have to put the necessary details correctly, and the calculator will provide instant results.

###### Accurate Results

The EMI calculator does not involve any manual calculations. Therefore, it eliminates the risk of error. If you provide the details correctly, you will always receive accurate results.

## What types of loans can I use the EMI calculator for?

An EMI interest calculator can be used to get an idea of the EMI amount for different types of loans. For instance, these online calculators will help you determine the EMI for personal, car, or home loans.

## Will the EMI calculated by the bank be different from the EMI calculator?

The formula used by banks and the EMI calculator formula are the same. Therefore, you will get an idea of the right EMI amount from both places.

## What are the benefits of using an EMI Calculator?

If you don't know how to calculate EMI, a reliable monthly EMI calculator will come to your rescue. It will accurately calculate the EMI amount to repay your loan.