« How well did the Indian stock market perform in 2023? Bajaj Auto Buyback: is it an easy way to make money or lose money? »

EMI Calculator: know your EMI per lakh to easily know how much total EMI you have to pay

Posted on 10 Jan 2024
Author: Sayan Sircar

Tags: Loans

3 mins read
📢Join 3400+ readers on WhatsApp and get new post notifications!

This article shows you an easy way to know your EMI for any home, car, personal, gold or credit card loan.

EMI Calculator: know your EMI per lakh to easily know how much total EMI you have to pay

How EMI of a loan works?

Using the example of a home loan, this is how an EMI works. This is not the only way to calculate how much a loan payment works but it is the most common method.

Mortgage payment vs home equity

The bank gives a home loan to own the property while you use it until you pay back the loan via EMIs. An Equated Monthly Instalment plan (EMI) is a standard way to pay off a loan by making a fixed payment monthly that has both interest and principal in the same amount.

EMI = Principal + Interest

In each EMI, the split of the interest and principal changes since the interest is based on the outstanding loan balance at that point and the rest of the EMI is principal. As the chart shows, the interest part drops off with time, and the rest is the principal. The actual numbers in the chart relate to a ₹50 lakhs home loan taken at 8% for 25 years. The EMI is ₹38,591. The down payment amount is ₹12.5 lakhs.

How are loan EMIs calculated?

We can use this Excel formula to calculate the EMI:

EMI = PMT(r/12 , y * 12, -p * 10^5 , 0 , 0) where r = interest rate in %, y = years and p = amount borrowed in ₹ lakhs

In the sections below, we will show the EMI for a ₹1 lakh outstanding loan balance. You can simply multiply the numbers in the tables with your actual loan balance to find your EMI number. In each case we have used a consistent number of years in the loan and the interest rate range is as per current market rates.

EMI per lakh figures near a ₹1,000/month are in blue. To understand how EMIs will afftect your future cashflow:

Did you know that we have a private Facebook group which you can join for free and ask your own questions? Please click the button below to join.

Car loan EMI per lakh

Gold loan EMI per lakh

Also read
Should you renew your PPF account or invest in mutual funds?

Personal loan EMI per lakh

Credit Card loan EMI per lakh

The EMI amount does not seem too bad until you realise that for each deepening of the shade if red, the amount of principal repaid increases by 100%. The numbers in the table exclude GST on interest.

Home loan EMI per lakh

We have a detailed article on this topic of home loan EMIs here: How much EMI do I have to pay for my home loan?

What's next? You can join the Arthgyaan WhatsApp community

You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

For resident Indians 🇮🇳:

For NRIs 🇺🇸🇬🇧🇪🇺🇦🇺🇦🇪🇸🇬:

Share on WhatsApp:

To understand how this article can help you:

If you have a comment or question about this article

The following button will open a form with the link of this page populated for context:

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Previous and next articles:

<p>This article shows the report card for the Indian stock market for 2023 vs the last 25 years.</p>

Market Movements

How well did the Indian stock market perform in 2023?

This article shows the report card for the Indian stock market for 2023 vs the last 25 years.

Published: 7 January 2024

4 MIN READ

<p>This article analyses the Bajaj Auto share buyback announced in January 2024 to decide if it is possible to make a quick return by entering the stock before the record date.</p>

News Calculator

Bajaj Auto Buyback: is it an easy way to make money or lose money?

This article analyses the Bajaj Auto share buyback announced in January 2024 to decide if it is possible to make a quick return by entering the stock before the record date.

Published: 11 January 2024

3 MIN READ