💸 EMI Calculator (Loan Planner)
Plan your Home, Car, or Personal Loan repayments accurately.
What is an EMI Calculator?
EMI stands for Equated Monthly Installment. It is the fixed amount of money you pay to your bank or lender every month to repay a loan. The OneHisaab EMI Calculator helps you estimate your monthly payments before you apply for a Home Loan, Car Loan, or Personal Loan.
Using this tool allows you to plan your budget effectively. If the EMI is too high, you can adjust the tenure using the sliders above. For long-term wealth creation to pay off loans, consider checking our SIP Calculator.
How is EMI Calculated?
The mathematical formula used in our calculator is:
Where:
- P = Principal Loan Amount
- R = Monthly Interest Rate (Annual Rate / 12 / 100)
- N = Loan Tenure in Months
Factors Affecting Your EMI
- Loan Amount: Higher loans mean higher EMIs.
- Interest Rate: Even a 0.5% difference can save you lakhs in the long run.
- Tenure: Longer tenure reduces monthly EMI but increases the Total Interest payable.
Always compare total interest payable. Sometimes paying off a loan early is better. Use our Percentage Calculator to see how much interest you are saving by prepaying.
The Ultimate Guide to EMI Calculation & Loan Planning
Taking a loan is a big financial commitment, whether it's for buying a home, a car, or funding personal expenses. The most critical factor in any loan is the Equated Monthly Installment (EMI). The OneHisaab EMI Calculator helps you calculate your monthly outgo instantly so you can plan your budget without stress.
Many borrowers underestimate the impact of interest rates and tenure. A slightly longer tenure might reduce your monthly EMI, but it significantly increases the Total Interest Payable. Our tool visualizes this trade-off using interactive charts.
Factors That Affect Your EMI
Three main components decide how much you pay every month:
- Principal Amount (P): The total money you borrow from the bank.
- Interest Rate (R): The percentage charged by the lender. Rates can be fixed or floating.
- Loan Tenure (N): The time you take to repay. Longer tenure = Lower EMI but Higher Interest cost.
Formula Used for Calculation
Banks use a specific mathematical formula to ensure you pay a fixed amount every month while the interest component keeps decreasing.
Calculating this manually is difficult due to the exponential power factor. Our online tool processes this in milliseconds.
How to Reduce Your Home Loan EMI?
If your EMI burden feels too high, consider these strategies:
- Prepayments: Use your annual bonus or savings to pay off a chunk of the principal. This drastically reduces the tenure.
- Balance Transfer: If another bank offers a lower interest rate (e.g., 8.5% vs 9.5%), switch your loan. Calculate the difference using our Percentage Calculator.
- Increase Tenure: Increasing the loan duration reduces monthly pressure, though you pay more interest overall.
Frequently Asked Questions (FAQ)
What is the difference between Fixed and Floating Rate?
In a Fixed Rate loan, your EMI remains the same throughout the tenure. In a Floating Rate loan, the interest rate changes based on the RBI Repo Rate. If rates drop, your EMI decreases, and vice versa.
Does EMI include GST?
No, the EMI amount usually consists of Principal and Interest only. However, GST is applicable on processing fees and prepayment charges. You can check GST amounts using our GST Calculator.
How much of my salary should go towards EMI?
Financial experts suggest that your total EMIs (Home + Car + Personal) should not exceed 40-50% of your monthly take-home income. Use the remaining amount for investments in SIPs.
Disclaimer: This tool is for estimation purposes only. Banks may apply additional charges or different interest calculation methods. Please verify with your lender before applying.