EMI Calculator is a free online tool that displays the monthly installment amount to be paid on for the given input values such as loan amount, tenure, rate of interest. The Online EMI calculator tool available at BYJU’S helps in completing the calculations quickly and displays the monthly installment amount within a fraction of seconds.
How to Use the EMI Calculator?
The steps to use the online EMI calculator are given below:
Step 1: Enter the loan amount, rate of interest (in percentage), tenure
Step 2: Click the button “Submit” to get the monthly installment value
Step 3: The value will be displayed in the new window
What is EMI?
In simple words, EMI stands for Equated Monthly Installment. EMI is the monthly repayment that a loan borrower must make to repay the loan amount within the specified period of time i.e. loan tenure at a certain rate of interest. We can also define EMI as “a fixed payment amount paid by a borrower to a lender at a specified date of each calendar month”. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified period of time (tenure), the loan is paid off fully along with the interest. Incase of EMI repayments made on simple interest.
Types of Loans
The most common types of loans for which EMI options available with easy procedures are home loans, car loans and personal loans. The EMI procedures will vary depending on the type of loan you choose. Also, the rate of interest will differ depending on the type of lender from whom you borrow the amount.
For example, if the loan amount is Rs.100000 and the interest rate per annum is 12% and the loan period is 24 months, then the EMI to be paid is Rs.4707.