Article: How to Use the EMI Calculator

An EMI (Equated Monthly Installment) Calculator is a financial tool used to determine your fixed monthly repayment amount for loans based on loan amount, interest rate, and loan duration.

Whether you're planning to take a personal loan, car loan, or mortgage, understanding your monthly financial obligations is critical, and that’s exactly what this EMI Calculator helps with.

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How to Use the EMI Calculator

Step 1:
Enter the Loan Amount in dollars. This is the total amount you plan to borrow from the bank or lender.

Example: 25,000

Step 2:
Enter the Annual Interest Rate (%). This is the percentage of interest the bank will charge yearly.

Example: 7.5

Step 3:
Enter the Loan Tenure in Months. This is how long you will repay the loan.

Example: 60 (for 5 years)

Step 4:
Click on “Calculate EMI.”

The calculator will display:

• Monthly EMI – how much you need to pay every month
• Total Payment – the full amount you’ll repay (principal + interest)
• Total Interest – the interest alone you’ll pay over the loan’s life

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Example Calculation

Let’s say:

• Loan: $25,000
• Interest: 7.5%
• Tenure: 60 months

The calculator might show:

• EMI: $501.89/month
• Total Payment: $30,113.22
• Total Interest: $5,113.22

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EMI Calculator – FAQ

1. What is an EMI?
An EMI (Equated Monthly Installment) is a fixed payment made by a borrower to a lender at a specified date each calendar month.

2. Is the interest compounded monthly in EMI?
Yes. EMI is calculated based on a reducing balance method, where interest is compounded monthly on the remaining principal.

3. Can I use this calculator for mortgages or car loans?
Absolutely! This EMI calculator works for any type of loan where EMI payments are involved.

4. What if I repay early?
This calculator does not factor in early payments or prepayment penalties. It’s designed for fixed-term, full-tenure calculations.

5. Does this include processing fees or insurance?
No. It only calculates based on the loan amount, interest rate, and tenure. Additional costs are not included.