EMI Calculator for Fixed and Floating EMI | Loan Interest & Principal Calculation
What is the EMI Calculator for Fixed and Floating EMI?
This tool is a specialized online calculator designed to simplify the process of estimating your monthly EMI (Equated Monthly Installment) for loans in India. Whether you are opting for a fixed EMI or a floating EMI, this calculator provides an accurate breakdown of your loan repayment details.
How the Tool Simplifies Your Work
- Calculate your monthly EMI in seconds.
- Get insights into your principal amount, total interest payable, and the total amount payable.
- Download a detailed loan schedule in Excel for future reference.
- Primary Use Case: The EMI Calculator is ideal for individuals planning to take loans, such as home loans, car loans, or personal loans, and want clarity on their repayment schedule.
- Problem It Solves: It eliminates the need for manual calculations, reducing the risk of errors and providing a clear comparison between fixed and floating EMI options.
Features and Benefits
- Fixed and Floating EMI Options: Calculate EMI for both fixed and floating interest rates.
- User-Friendly Interface: Enter details like loan amount, interest rate, loan term, and payment type to get instant results.
- Detailed Breakdown: Displays the monthly EMI, total interest payable, and total amount payable.
- Loan Schedule: Download an Excel sheet of your loan repayment schedule.
- Accuracy: Uses precise mathematical formulas to ensure error-free results.
Benefits of Using the Tool:
- Time-Saving: Instantly calculates complex EMI figures.
- Clarity in Decision-Making: Compare fixed and floating EMI options side by side.
- Budget Planning: Helps you plan your finances effectively.
- Accessibility: Available 24/7 online and mobile-friendly.
How to Use (Step-by-Step Guide)
- Enter the Loan Details: Input the loan amount, interest rate (per annum), and loan tenure in years.
- Select Payment Type: Choose between Fixed EMI and Floating EMI.
- View the Results: Instantly see your monthly EMI, principal amount, total interest, and total payable amount.
- Download the Loan Schedule: Click the “Download Excel” button for a detailed repayment schedule.
- Compare Options: Modify the inputs to compare different scenarios and choose the best loan plan for you.
How to Calculate Fixed and Floating EMI Mathematically
How to Calculate Fixed EMI
Fixed EMI is calculated using the formula:
EMI = P × R × (1 + R)N / ((1 + R)N – 1)
Where:
- P = Principal loan amount
- R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- N = Loan tenure in months
Example Calculation:
Principal loan amount: ₹1,000,000
Interest rate: 10% per annum
Loan tenure: 10 years (120 months)
Substitute the values into the formula:
EMI = 1,000,000 × 0.00833 × (1 + 0.00833)120 / ((1 + 0.00833)120 – 1)
Result: ₹12,667.58
How to Calculate Floating EMI
Floating EMI is dynamic and depends on changes in the interest rate during the loan tenure. It is recalculated based on the remaining principal and updated interest rate.
The formula for the recalculated EMI is:
EMI = P × R’ × (1 + R’)N’ / ((1 + R’)N’ – 1)
Where:
- P = Remaining principal amount
- R’ = Updated monthly interest rate
- N’ = Remaining loan tenure in months
Example Calculation:
If the interest rate increases to 12% after 5 years (60 months), the remaining tenure and principal will be used to compute the new EMI.
FAQs- Frequently Asked Questions
1. What is the difference between Fixed and Floating EMI?
Fixed EMI remains constant throughout the loan tenure, while floating EMI varies based on changes in the interest rate.
2. Can I use this tool for any type of loan?
Yes, the tool works for all loan types, including home loans, car loans, and personal loans.
3. How accurate is this EMI Calculator?
The tool uses precise mathematical formulas to ensure 100% accuracy in calculations.
4. Can I download my loan repayment schedule?
Absolutely! You can download the schedule in Excel format for detailed insights.
5. How accurate are the calculations?
The tool uses precise algorithms to ensure 100% accuracy in date difference calculations.
6. What happens if the interest rate changes during my loan tenure?
For floating EMI, the calculator allows you to input the updated interest rate to calculate the revised EMI.