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Finvra

Loan Calculator & EMI Estimator

Calculate your monthly payments for Mortgages, Auto Loans, or Personal Loans. See exactly where your money goes.

USA ($) Mode
$
5K2M
%
0.1%12%

Avg Bank Rate: 7%

Years
1Y30Y

Monthly Payment

$2,326
Principal$300,000
Total Interest$258,215
Total Payable$558,215

Interest Breakup

Understanding Your Monthly Payment

Whether you call it an EMI (Equated Monthly Installment) or a Mortgage Payment, the math is essentially the same. Every payment you make to the bank is split into two distinct parts:

1. Principal

The money that actually reduces your loan balance. This portion is small at the beginning but grows larger over time.

2. Interest

The profit the bank makes for lending you money. This portion is huge at the start of your loan tenure.

The EMI Formula

E = P × r × (1+r)n / [(1+r)n-1]
  • E = EMI (Monthly Payment)
  • P = Principal Loan Amount
  • r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
  • n = Loan Tenure in Months

Know Your Budget

Calculate exactly how much house or car you can afford before visiting a showroom.

Compare Tenures

See how switching from a 20-year to a 15-year loan can save you thousands in interest.

Pre-payment Check

Understand how interest is front-loaded, making early pre-payments highly effective.

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Frequently Asked Questions

How is the monthly loan payment (EMI) calculated?
We use the standard amortization formula used by banks globally: E = P x r x (1+r)^n / [(1+r)^n-1]. This ensures 100% accuracy for mortgages, car loans, and personal loans.
Can I use this for a Mortgage / Home Loan?
Yes. This calculator is perfect for Mortgages. Simply enter your loan principal, the annual interest rate, and your loan duration (tenure) to see your monthly obligation.
Does the EMI change if interest rates change?
For 'Fixed Rate' loans, your EMI remains constant. For 'Floating/Variable Rate' loans (common in housing), your payment may increase or decrease if the central bank adjusts the repo rate.
How can I reduce my total interest cost?
You can save money by: 1) Choosing a shorter loan tenure (increases EMI but lowers interest), 2) Making a larger down payment, or 3) Making periodic pre-payments towards the principal.

Disclaimer: This tool provides estimates based on standard amortization formulas. Actual payments may vary slightly due to bank fees, insurance (PMI), rounding, or taxes.