EMI Calculator for Personal Loan, Car Loan & Housing Loans
EMI Calculator
Personal Loan EMI Calculation:
The EMI for a personal loan is calculated using the same basic formula mentioned earlier:
- EMI = P * r * (1 + r)^n / ((1 + r)^n – 1)
- EMI: Equated Monthly Installment
- P: Principal loan amount (the initial amount borrowed)
- r: Monthly interest rate (annual interest rate divided by 12 and expressed as a decimal)
- n: Loan tenure in months
Car Loan EMI Calculation:
Car loan EMIs are calculated similarly to personal loans. You use the same formula, but with specific values for the car loan:
- P: Principal loan amount (the cost of the car minus the down payment)
- r: Monthly interest rate (annual interest rate divided by 12 and expressed as a decimal)
- n: Loan tenure in months
Home Loan EMI Calculation:
Home loan EMIs follow the same basic formula as personal and car loans, but with some variations. Home loans typically offer two types of interest rates: fixed and floating. The calculation depends on the type of interest rate:
- For Fixed Interest Rate Home Loans:
- The interest rate remains constant throughout the loan tenure, so ‘r’ remains the same for each EMI.
- For Floating Interest Rate Home Loans:
- The interest rate may change periodically (e.g., every 3 months or annually). In this case, ‘r’ would vary for each EMI.
Additionally, home loans often have a longer tenure compared to personal and car loans.
It’s important to note that there may be variations in the way different financial institutions or lenders calculate EMIs, especially when considering factors such as the method of rounding off the EMI amount and any processing fees. To get an accurate EMI calculation, it’s advisable to check with your lender or use their online EMI calculator, which will consider the specific terms and conditions of your loan.
