years | Principal (A) | Interest (B) | Total Payment (A+B) | Balance | Loan paid to date |
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## What is KNOW YOUR EMI?

KNOW YOUR EMI is a powerful web-based tool which is used to calculate Equated Monthly Installment in short EMI. EMI is the amount payable every month against your loan (that may be a home loan, personal loan, car loan, bike loan) to the bank or any lender. EMI is a composition of principal and interest component. During the initial months of loan tenure EMI interest component is little higher than the EMI principal component as the loan tenure decreases EMI interest component decrease and EMI principal component increases. EMI amount won’t change throughout loan tenure until and unless you request the bank or lender to change EMI.

## How EMI is calculated?

Before going in to calculation part we should know four things.

- P – Principal Amount (or) Loan Amount.
- I – Interest Rate (or) Rate of Interest. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
- N – Number of Installments (or) Loan Tenure.
- Date – From which date EMI should be calculated. This is optional.

Here is the formula to calculate EMI: -

For example, if you take a loan amount of ₹15,00,000 from the bank or lender at 10.5% annual interest for a period of 10 years (i.e. of 120 months), then your EMI=₹15,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 – 1)=₹20,240. i.e., you have to pay ₹20,240 for 120 months. The total amount payable will be ₹20,240 * 120=₹24,28,800 that includes ₹9,28,800 as interest toward the loan.