Understanding Loan Calculators: EMI vs Monthly Payments

Loan Basics

When taking out a loan, understanding how payments are calculated is crucial for financial planning.

What is EMI?

EMI stands for Equated Monthly Installment. It's a fixed payment amount you pay each month to repay a loan.

How Loan Payments Work

Your monthly payment includes both principal and interest. Early payments are mostly interest, while later payments are mostly principal.

Key Factors Affecting Loan Payments

• Principal Amount: The original loan amount
• Interest Rate: The annual percentage rate (APR)
• Loan Term: The number of years to repay

Using a Loan Calculator

Our loan calculator helps you understand the total cost of borrowing and plan your finances accordingly.