How EMI Is Calculated

This loan calculator uses a structured repayment method where the loan amount and interest are calculated separately to give clear visibility of repayment.

Key Terms

• P – Principal loan amount
• N – Total loan tenure (in months)
• R – Monthly interest rate

Repayment Structure

• Principal-only EMIs: The principal amount is divided equally over the selected number of months.

• Interest-only EMIs: Interest is calculated monthly on the original loan amount and remains fixed.

This calculator helps avoid manual calculations and provides a clear breakup of principal and interest for easy understanding.