EMI Calculator
EMI Calculator — simple guide for claimed shop owners
What this page is for Quickly compute monthly instalments (EMIs) for customer purchases — useful for electronics, appliances, jewellery, and any high-value item where customers pay over time. Supports Reducing Balance (standard amortizing loans) and Flat Rate calculations, shows a short amortization preview, and keeps a session history of recent calculations.
Top summary (what you see immediately)
Loan Type — Reducing Balance or Flat Rate.
Principal Amount — the loan/purchase amount.
Annual Interest Rate (%) — interest charged per year.
Loan Tenure (months) — number of monthly instalments.
Calculate — opens a modal showing EMI, total payment, total interest, and first 5 months of amortization.
History — saved calculations in the browser session for quick reuse.
Why it matters: helps your sales staff give customers accurate monthly payment quotes, compare finance offers, and close more sales by showing transparent payment breakdowns.
Do this now: when a customer asks about EMIs on a ₹20,000 TV, run the calculator to show monthly options and the total cost clearly.
How to use — quick steps
Dashboard → Tools → EMI Calculator.
Select Loan Type: Reducing Balance (recommended) or Flat Rate.
Enter Principal Amount (e.g., 20,000).
Enter Annual Interest Rate (e.g., 12).
Enter Loan Tenure in months (e.g., 12, 24, 36).
Click Calculate → view EMI, totals, and amortization. Save or show the modal to the customer.
Plain formulas (no heavy finance talk)
Reducing Balance (Standard EMI)
Monthly interest rate r = annualRate / 12 / 100.
EMI formula:
emi = [P × r × (1 + r)^N] ÷ [(1 + r)^N − 1]P= principal,r= monthly interest rate,N= number of months.Total Payment = emi × NTotal Interest = Total Payment − P
Flat Rate (simple method used by some lenders)
Total interest:
TotalInterest = (P × annualRate × (N/12)) ÷ 100Total Payment = P + TotalInterestemi = Total Payment ÷ N
Note: Flat rate usually results in a higher effective interest than reducing balance for the same nominal rate.
Examples (practical)
Example A — Reducing balance (recommended)
Principal = ₹30,000
Annual Rate = 12% → monthly
r = 0.01Tenure = 12 months EMI ≈ ₹2,665. Total Payment ≈ ₹31,980. Total Interest ≈ ₹1,980. (Use the tool to show exact month-by-month principal/interest split.)
Example B — Flat rate
Principal = ₹30,000
Annual Rate = 12% → TotalInterest =
30,000 × 12% × 1 = ₹3,600(for 12 months)Total Payment = ₹33,600 → EMI = ₹2,800. (Flat-rate EMI higher here; show both options so customer compares.)
Amortization preview
The tool shows the first 5 payments: EMI amount, how much of each EMI goes to principal vs interest, and remaining balance.
Useful to explain to customers how interest declines over time with reducing balance loans.
Practical tips for shop staff
Prefer reducing balance in customer explanations — it's more common and usually fairer.
Always confirm the bank/financier’s exact rate and processing fees — the calculator does not include one-time processing fees or insurance.
Show total cost as well as monthly EMI so customers understand the total outflow.
Round sensibly when quoting (e.g., round EMI to nearest rupee for customer-facing quotes).
Use history to quickly re-show common finance options for similar products.
Edge cases & validation
Principal must be > 0, tenure must be > 0 months, interest must be ≥ 0.
Interest = 0 yields
emi = principal ÷ tenure.Flat vs Reducing: identical nominal rates are not comparable directly — flat rate understates effective cost. Always show totals.
Very long tenures (e.g., > 60 months) dramatically increase total interest — warn customers.
Quick troubleshooting
EMI not shown / modal not opening: refresh page (Bootstrap JS required).
Strange values: ensure interest rate is annual, tenure in months, and principal in same currency.
History lost: history is stored in browser session — closing incognito or clearing cache removes it.
Need bank-level accuracy: for loan approval or regulatory disclosure, fetch lender’s exact amortization schedule (this tool is an estimator).
5–10 minute action plan (what to do now)
Enter principal and try two tenures (12 and 24 months) to show the customer trade-offs.
Compare reducing balance and flat rate on-screen to demonstrate total cost differences.
Note the chosen option in your sale record (EMI, rate, tenure) for follow-up and reconciliation.
Who should use this and how often
Sales associates: on-demand while discussing financing with customers.
Store managers: to prepare promotional financing options and POS messaging.
Accounts/finance: to estimate monthly receivables from financed sales.
One-line summary
Show customers clear, comparable EMI options (reducing vs flat), with monthly instalments, total cost, and a short amortization preview — perfect for closing sales on higher-value items.
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