EMI Calculator
Plan Smart, Pay Easy. Your Guide to Hassle-Free EMIs!
Loan Details
EMI Details
| Monthly EMI | ₹10,415 |
|---|---|
| Total Interest Payable | ₹1,24,881 |
| Total Payment | ₹6,24,881 |
| Month | Opening (₹) | Interest (₹) | Principal (₹) | Balance (₹) |
|---|
Investment Knowledge Center
Effective Investment Strategies
- Diversification is key to managing risk. Spread your investments across different asset classes such as equity, debt, and gold to minimize exposure to any single investment.
- Start investing early to benefit from the power of compounding. Even small amounts invested regularly can grow significantly over time.
- Consider Systematic Investment Plans (SIPs) for disciplined investing. SIPs allow you to invest a fixed amount regularly, helping you build wealth steadily regardless of market fluctuations.
- Review and rebalance your portfolio periodically to ensure it aligns with your financial goals and risk tolerance.
Smart Financial Tips
- Create an emergency fund covering 3-6 months of expenses before starting investments. This provides financial security during unexpected situations.
- Pay off high-interest debts first. The interest saved by clearing debts often exceeds the returns you might earn from investments.
- Use the 50-30-20 budgeting rule: allocate 50% of your income for needs, 30% for wants, and 20% for savings and investments.
- Consider tax-efficient investment options to maximize your returns. Understand the tax implications of different investment products before investing.
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both the 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 amount, r is the monthly interest rate, and n is the number of monthly installments.
What happens if I miss an EMI payment?
Missing an EMI payment can result in late payment penalties, a negative impact on your credit score, and in severe cases, the lender may take possession of the collateral or asset.
Can I prepay my loan?
Most lenders allow loan prepayment, but there might be prepayment charges. Check with your lender about their prepayment policies and calculate if the prepayment benefits outweigh the charges.