EMI Calculator
Calculate your Equated Monthly Installment (EMI) for loans. Get a detailed breakdown of principal, interest, and total repayment amount.
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EMI Calculation Results
Your loan repayment summary
Enter your loan details and click Calculate to see your EMI breakdown.
Understanding EMI Calculations
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender on a specified date each month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off.
How is EMI Calculated?
EMI is calculated using the formula: EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 months), and n is the number of monthly installments.
Factors Affecting EMI
- Loan Amount: Higher principal means higher EMI
- Interest Rate: Higher rates increase the EMI amount
- Tenure: Longer tenure reduces EMI but increases total interest
Tips for Managing Loans
- Choose a tenure that balances affordable EMI with reasonable interest costs
- Consider making prepayments to reduce the principal and save on interest
- Compare interest rates from multiple lenders before committing
- Ensure your EMI doesn't exceed 40-50% of your monthly income