Considering how simple and useful an EMI chart calculator can be, I developed this EMI Chart calculator in Excel. EMI chart is now available in two different formats – EMI Chart in PDF format and EMI Chart in Excel
For the uninitiated, EMI (also known as Equated Monthly Installment) commonly refers to a fixed monthly installment that a borrower has to repay to the lender till such time that the loan amount has been repaid in full. It can be thought of as the reverse of an annuity.
The EMI has two components – the interest amount and the principal repaid. The interest is typically calculated by multiplying the interest rate with the principal to arrive at the interest amount to be repaid for the month. The EMI amount itself is typically a little higher than the interest amount and hence the excess payment is used to reduce the principal outstanding in the name of the borrower. Since the EMI is typically constant over the tenure of the loan (although in some cases, it may be structured otherwise), due to the reducing principal with the payment of every EMI, the interest component reduces and the principal repaid increases over a period of time. Hence the rate of repayment of a loan through an EMI will progress at a slower rate initially and increase as the time elapsed nears the tenure of the loan.
The excel EMI Calculator can help you calculate how the loan would be repaid over a period of time. You will need to input three parameters – the loan amount, the loan tenure and the rate of interest.