EMI Calculator
Calculate your Equated Monthly Installment (EMI) for any loan with down payment option. Adjust loan amount, down payment, interest rate, and tenure to find the best EMI for your budget.
Loan Details
EMI Calculation Results
Monthly EMI
Total Interest
₹ 1,15,480
Total Amount
₹ 6,15,480
Loan Amount (After Down Payment)
₹ 5,00,000
Payment Breakdown
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Calculate NowAbout EMI Calculator with Down Payment
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
Our EMI calculator with down payment option helps you determine the monthly repayment amount for your loan based on the total loan amount, down payment, interest rate, and loan tenure. A down payment reduces your loan amount and consequently your EMI, helping you save on interest payments.
Understanding your EMI helps you budget effectively and choose a loan tenure that suits your financial situation. A longer tenure reduces your monthly EMI but increases the total interest paid over the loan term, while a shorter tenure increases your monthly EMI but reduces the total interest paid.
Making a substantial down payment can significantly reduce both your EMI burden and the total interest paid over the loan term. It also improves your chances of loan approval and may help you secure a better interest rate.
How EMI Calculation Works with Down Payment
The EMI calculation formula is based on the reducing balance method, which is commonly used by financial institutions. The formula is:
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where:
- P = Principal loan amount (Total loan amount minus down payment)
- R = Monthly interest rate (annual rate divided by 12 months and then divided by 100)
- N = Loan tenure in months
For example, for a total loan of ₹5,00,000 with no down payment at an annual interest rate of 8.5% for 5 years (60 months):
- Principal P = ₹5,00,000 (since down payment is 0)
- Monthly interest rate R = 8.5/12/100 = 0.007083
- EMI = [500000 × 0.007083 × (1+0.007083)^60] / [(1+0.007083)^60 - 1] = ₹10,258
- Total amount payable = EMI × N = ₹10,258 × 60 = ₹6,15,480
- Total interest payable = Total amount - Principal = ₹6,15,480 - ₹5,00,000 = ₹1,15,480
If you make a down payment of ₹1,00,000:
- Principal P = ₹5,00,000 - ₹1,00,000 = ₹4,00,000
- EMI = [400000 × 0.007083 × (1+0.007083)^60] / [(1+0.007083)^60 - 1] = ₹8,206
- Total amount payable = EMI × N = ₹8,206 × 60 = ₹4,92,360
- Total interest payable = Total amount - Principal = ₹4,92,360 - ₹4,00,000 = ₹92,360
- Total savings = ₹1,15,480 - ₹92,360 = ₹23,120 in interest
Frequently Asked Questions
EMI stands for Equated Monthly Installment. It is the fixed amount you pay each month towards your loan repayment, which includes both principal and interest components.
A down payment reduces your principal loan amount, which in turn reduces both your monthly EMI and the total interest paid over the loan tenure. The larger your down payment, the lower your EMI will be.
EMI is affected by four main factors: 1) Total loan amount, 2) Down payment amount, 3) Interest rate, and 4) Loan tenure. Higher loan amounts or interest rates increase EMI, while larger down payments or longer tenures reduce EMI.
Yes, you can reduce your EMI by: 1) Increasing the loan tenure, 2) Making a larger down payment to reduce the principal amount, or 3) Negotiating a lower interest rate with your lender.
The basic EMI calculation formula is the same for most loans (home, car, personal). However, some loans may have additional charges or different interest calculation methods that can affect the total cost.
For home loans, a down payment of 20-30% is typical. For vehicle loans, 10-20% is common. A higher down payment reduces your EMI and total interest, but you should balance this with maintaining adequate savings for emergencies.