EMI Calculator & Amortization Schedule
Amortization Schedule
| Month | EMI ($) | Interest ($) | Principal ($) | Remaining Balance ($) |
|---|
How It Works
- Input Section:
- Loan Amount: The total amount of the loan.
- Annual Interest Rate: The yearly interest percentage.
- Tenure: Enter the number of years and any additional months (0–11) to set the loan term.
- Calculations:
- Monthly EMI: Calculated using the standard formula.
- Total Interest Payable: The difference between the total amount paid (EMI × total months) and the original loan amount.
- Total Amount Payable: Sum of the loan amount and the total interest.
- The code also converts the total months into a combination of years and months.
- Amortization Schedule:
- A table is generated showing each month’s breakdown: EMI, interest component, principal component, and the remaining balance.
- Pie Chart:
- A pie chart visually shows how the total payment is divided between the original principal and the total interest.
What is EMI?
Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won’t change, the proportion of principal and interest components will change with time. With each successive payment, you’ll pay more towards the principal and less in interest.
Here’s the formula to calculate EMI:
where
E is EMI
P is Principal Loan Amount
r is rate of interest calculated on monthly basis. (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 is loan term / tenure / duration in number of months.
Wowww! Sooo simple and nice 💯