Term Loan Advance EMI Calculator

What this Term Loan Advance EMI calculator does

• Handles EMI in arrears (end-of-month) and EMI in advance (deducted at disbursement).
• Models moratorium as interest-only or interest-accrued (capitalized).
• Applies pre-EMI interest for the stub period between disbursement and EMI start using a clear convention (see assumptions below).
• Supports monthly extra and one-time lumpsum prepayments to see time and interest saved.
• Groups schedule and charts by Financial Year (Apr–Mar), Calendar Year (Jan–Dec), or Rolling 12-months.
• Exports the full schedule to CSV and PDF.
• Displays all values rounded to the nearest rupee for clean reporting.

Key assumptions & calculation model

To keep results consistent and fast on the web, we use a transparent, industry-standard set of rules:

1. Interest rate & compounding
   • Annual rate split equally across months: r = (annual rate % / 12) / 100.
   • EMI (arrears) uses the classic formula: EMI=P×r(1+r)n(1+r)n−1\text{EMI} = P \times \frac{r(1+r)^{n}}{(1+r)^{n}-1}EMI=P×(1+r)n−1r(1+r)n​
   • Advance mode adjusts the EMI to EMI / (1 + r), and deducts the first principal-only instalment on disbursement day.
2. Pre-EMI (disbursement → EMI start)
   • We use an exclusive Actual/365 day count: days = Start − Disbursement.
   • If moratorium > 0, this pre-EMI interest is merged into the first moratorium month.
   • If no moratorium, it is merged into the first EMI’s interest.
3. Moratorium
   • Interest-only: You pay monthly interest; principal stays constant.
   • Interest-accrue (capitalized): Monthly interest is added to the principal; the balance grows during moratorium.
   • We treat moratorium in full months from the EMI start date.
4. Prepayments
   • Monthly extra is applied each EMI month (after scheduled EMI) to reduce principal sooner.
   • Lumpsum is applied in the month that matches its date; both reduce future interest.
5. Year grouping
   • Choose FY, CY, or Rolling to categorize the table and chart totals without changing the math.
6. Rounding & output
   • On-screen, CSV and PDF show whole rupees (no decimals).
   • The final instalment may adjust slightly to close the loan exactly.
7. Scope & limits
   • Processing fees, insurance, taxes, and resets are not built into EMI here. Those belong to an EIR / All-in-cost view, which we plan to release separately.
   • Banks may use different conventions (e.g., inclusive day counts, reset cycles, or special rounding rules).

How to use this Term Loan Advance EMI calculator

• Export: Download CSV for spreadsheets or PDF for sharing and filing.
• Enter basics: loan amount, annual interest rate, tenure (years + months).
• Set dates: Disbursement date (when funds are released) and EMI start date.

Choose EMI mode:

• Arrears if your EMI is due at month-end.
• Advance if the first instalment is deducted on disbursement.
• Add moratorium (optional): set the number of months and pick Interest-only or Interest-accrues.
• Add prepayments (optional): a recurring Monthly extra and/or a Lumpsum with date.
• Pick year grouping for the schedule and charts.
• Calculate to see EMI, total interest, total payment, charts, and the complete amortization schedule.

Key terms

Our tool assumes a single rate for the modeled period. For floating loans, use it for planning with your current rate, or simulate scenarios by rerunning the calculator with different rates at expected reset points.

• Term loan: A lump-sum loan repaid via equated monthly instalments (EMIs) over a fixed tenure.
• EMI (Equated Monthly Instalment): A fixed monthly outflow comprising interest + principal, computed from the monthly rate and tenure.

EMI in arrears vs advance:

• Arrears: EMI is paid at period end (most common).
• Advance: EMI is paid at period start; we adjust the EMI so the economics match arrears. The first amount at disbursement is principal-only.
• Pre-EMI: Interest charged for the days between disbursement and EMI start. We apply exclusive Actual/365 for this stub and merge it into the first moratorium month or first EMI as applicable.
• Moratorium: A temporary break from regular EMIs. In interest-only, you pay interest but no principal; in capitalized, interest gets added to principal.
• Prepayment: Any extra payment (monthly extra or lumpsum) that reduces principal earlier, saving interest and possibly tenure.

Fixed vs Floating rate:

• Fixed rate stays the same throughout the tenure (unless your agreement has a reset clause).
• Floating rate tracks a benchmark (e.g., Repo/MCLR + spread) and resets periodically (monthly/quarterly/annual). EMI may remain the same while tenure adjusts, or EMI may move—this is lender policy.

Pro tips for smarter planning

• For floating loans, compare outcomes at ±0.50% around your current rate to see sensitivity.
• Start with arrears, then test advance: advance slightly front-loads principal; arrears is easier to compare across lenders.
• Use a small Monthly extra—even ₹1,000–₹2,000 can chop several EMIs off over long tenures.
• If you must take a moratorium, try interest-only to avoid ballooning principal.