Myaverix Loan Calculator – Help Guide
Understanding EMI Calculations for Different Loan Types
Section 3: Loan Types
👉 Each loan type includes a definition, formula with dummy numbers, and calculated example.
1. Flat Interest Loan
Definition: Interest is charged on the full principal amount for the entire tenure, regardless of how much principal has been repaid.
Formula:
Total Interest = Principal × (Annual Rate / 100) × (Tenure in months / 12)
EMI = (Principal + Total Interest) / Tenure in months
📋 How to Use:
This loan type requires only the basic fields. No additional fields needed!
Step-by-Step:
1. Select "Flat" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%)
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Fixed"
- Compounding Frequency will auto-set to "Monthly"
3. Click "Calculate" to see your results
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed
Compounding Frequency = Monthly
Total Interest = ₹100,000 × 10% × (12/12) = ₹10,000
EMI = (₹100,000 + ₹10,000) ÷ 12 = ₹9,166.67 per month
Total Amount Paid = ₹110,000
2. Reducing Balance Loan
Definition: Interest is charged only on the outstanding principal balance after each EMI payment, making it more cost-effective than flat interest.
Formula:
Monthly Rate = Annual Rate / (100 × 12)
EMI = [Principal × Monthly Rate × (1 + Monthly Rate)^Tenure] / [(1 + Monthly Rate)^Tenure – 1]
📋 How to Use:
This loan type requires only the basic fields. No additional fields needed!
Step-by-Step:
1. Select "Reducing Balance" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%)
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Fixed"
- Compounding Frequency will auto-set to "Monthly"
3. Click "Calculate" to see your results
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed
Compounding Frequency = Monthly
Monthly Rate = 10% / 12 = 0.8333%
EMI = [₹100,000 × 0.008333 × (1.008333)^12] / [(1.008333)^12 – 1]
EMI = ₹8,791.59 per month
Total Interest = ₹5,499.06
Total Amount Paid = ₹105,499.06
3. Fixed Interest Loan
Definition: Uses the same reducing balance formula, but the interest rate remains constant throughout the entire loan tenure.
Formula:
Same as Reducing Balance Loan (rate never changes)
📋 How to Use:
This loan type requires only the basic fields. No additional fields needed!
Step-by-Step:
1. Select "Fixed" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%)
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Fixed"
- Compounding Frequency will auto-set to "Monthly"
3. Click "Calculate" to see your results
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed
Compounding Frequency = Monthly
EMI = ₹8,791.59 per month (same calculation as Reducing Balance)
Total Interest = ₹5,499.06
Total Amount Paid = ₹105,499.06
4. Floating Interest Loan
Definition: Interest rate changes with market conditions. EMI is recalculated when the rate changes, based on remaining principal and remaining tenure.
Formula:
For each rate segment: Recalculate EMI using remaining principal, new monthly rate, and remaining tenure
📋 Additional Fields Required:
When you select "Floating" loan type, you will see an "Interest Rate Change Schedule" section with an "+ Add Entry" button.
Step-by-Step Instructions:
1. Select "Floating" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%) - This is the initial rate
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Floating"
- Compounding Frequency will auto-set to "Monthly"
3. Find the "Interest Rate Change Schedule" section
4. Click the "+ Add Entry" button
5. In the new entry that appears, fill in:
- New Interest Rate: Enter the new rate (e.g., 12 for 12%)
- Change Month: Enter the month number when this rate change takes effect (e.g., 6 for month 6)
6. You can add multiple entries for multiple rate changes throughout the loan tenure
7. Click "Calculate" to see your results
Example: If you want 10% for months 1-6, then 12% from month 7 onwards:
- Add Entry 1: New Interest Rate = 12, Change Month = 6
- (Note: Change Month = 6 means the rate changes AFTER month 6, so months 1-6 use 10%, months 7-12 use 12%)
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Floating
Compounding Frequency = Monthly
Interest Rate Change Schedule:
- Entry 1: New Interest Rate = 12%, Change Month = 6
- (This means: 10% for months 1-6, then 12% from month 7 onwards)
- Important: Change Month = 6 means the rate changes AFTER month 6, so month 6 still uses 10%, and month 7 onwards uses 12%
First 6 months (months 1-6): Rate = 10%, EMI = ₹8,791.59 per month
After 6 months: Rate changes to 12%, Remaining Principal = ₹51,244.56
Next 6 months (months 7-12): Recalculated EMI = ₹8,842.17 per month (based on remaining principal and remaining tenure)
Total Interest = ₹5,802.53
Total Amount Paid = ₹105,802.53
5. Hybrid Loan
Definition: Starts with a fixed interest rate for an initial period, then switches to a floating rate for the remaining tenure.
Formula:
Phase 1: Calculate EMI using fixed rate over full original tenure
Phase 2: After switch month, recalculate EMI with remaining principal, floating rate, and remaining tenure
📋 Additional Fields Required for Hybrid Loans:
When you select "Hybrid" loan type, you will see TWO separate fields that you must fill:
Field 1: "Switch Month/Year" (appears at the bottom of the form)
• This is a single number field
• Enter the month number when the loan switches from fixed rate to floating rate
• Example: Enter 6 if the switch happens at month 6
Field 2: "Floating Rate After Switch" (appears in the middle of the form)
• This section has an "+ Add Entry" button
• Click "+ Add Entry" to add a rate change entry
• Each entry has TWO sub-fields:
- New Interest Rate: The floating interest rate that will apply after the switch (e.g., 12%)
- Change Month: Enter the SAME month number as your "Switch Month/Year" (e.g., 6)
⚠️ Important: The "Change Month" in the Floating Rate After Switch entry MUST match the "Switch Month/Year" value. Both should be the same number!
Step-by-Step Example: First 6 Months, Then Months 7-12
To calculate a loan with fixed rate for first 6 months, then floating rate for months 7-12:
1. Select "Hybrid" from the "Loan Type" dropdown
- Note: The "Interest Rate Type" will automatically be set to "Fixed" (you don't need to change this)
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%) - This is the initial fixed rate for months 1-6
- Loan Tenure in months (e.g., 12)
- Interest Rate Type = Fixed (auto-set, leave it as is)
- Compounding Frequency = Monthly (auto-set)
3. Scroll down and find the "Switch Month/Year" field
4. Enter 6 in the "Switch Month/Year" field (this means the loan switches at the end of month 6, so months 1-6 use fixed rate, months 7-12 use floating rate)
5. Scroll up to find the "Floating Rate After Switch" section
6. Click the "+ Add Entry" button
7. In the new entry that appears:
- Enter 12 in "New Interest Rate" (for 12% floating rate)
- Enter 6 in "Change Month" (MUST match the switch month - this tells the calculator when to apply the new rate)
8. Click "Calculate" to see your results
📊 Understanding the Results:
On the result page, you will always see:
• EMI Breakdown by Period card (this card is guaranteed to appear for Hybrid loans) showing:
- Period 1 (Fixed Rate): Months 1-6 → EMI: ₹X,XXX per month
* Number of months in this period
* Total amount paid during this period
- Period 2 (Floating Rate): Months 7-12 → EMI: ₹Y,YYY per month
* Number of months in this period
* Total amount paid during this period
- Summary section with:
* Total Amount: Sum of all payments across both periods
* Total Principal: The original loan amount
* Total Interest: Total interest paid across both periods
• The EMI Summary card above will show the average EMI across both periods
• All other result fields (total payment, total interest, etc.) reflect the combined amounts from both periods
💡 Important Note: For Hybrid loans, you should select "Fixed" in the Interest Rate Type dropdown (it will be automatically set when you select Hybrid). The "Fixed" here means the loan starts with a fixed rate, then switches to floating after the switch month.
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed (auto-set when you select Hybrid - the loan starts with fixed rate, then switches to floating)
Compounding Frequency = Monthly
Switch Month/Year = 6 (loan switches from fixed to floating at month 6)
Interest Rate Change Schedule: Entry 1: New Interest Rate = 12%, Change Month = 6
Phase 1 (months 1-6): Fixed rate 10%, EMI = ₹8,791.59 per month
After 6 months: Remaining Principal = ₹51,244.56
Phase 2 (months 7-12): Floating rate 12%, Recalculated EMI = ₹8,842.17 per month
Total Interest = ₹5,802.53
Total Amount Paid = ₹105,802.53
6. Bullet Loan
Definition: Only interest is paid periodically (monthly); the full principal amount is repaid as a lump sum at maturity.
Formula:
Monthly Interest = Principal × (Annual Rate / 100) / 12
EMI = Monthly Interest (interest only)
Final Payment at maturity = Principal
📋 How to Use:
This loan type requires only the basic fields. No additional fields needed!
Step-by-Step:
1. Select "Bullet" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%)
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Fixed"
- Compounding Frequency will auto-set to "Monthly"
3. Click "Calculate" to see your results
Note: You'll pay only interest each month, and the full principal will be due at the end of the loan tenure.
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed
Compounding Frequency = Monthly
Monthly Interest = ₹100,000 × 10% ÷ 12 = ₹833.33 per month
Final Payment at maturity = ₹100,000 (principal)
Total Interest = ₹10,000
Total Amount Paid = ₹110,000
7. Step-Up Loan
Definition: EMI increases gradually over time according to a predefined schedule (e.g., +₹500 every 6 months).
Formula:
Using exact amortization: Base EMI is calculated so the present value of all payments equals the principal
EMI progression: EMI_t = BaseEMI + (t-1) × Gradient per month
📋 Additional Fields Required:
When you select "Step Up" loan type, you will see an "Increment Schedule" section with an "+ Add Entry" button.
Step-by-Step Example: First 6 Months, Then Months 7-12
To calculate a loan with base EMI for first 6 months, then increased EMI for months 7-12:
1. Select "Step Up" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%)
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Fixed"
- Compounding Frequency will auto-set to "Monthly"
3. Find the "Increment Schedule" section
4. Click the "+ Add Entry" button
5. In the new entry that appears, fill in:
- Interval: Enter 6 (this means the increment happens at month 6, so months 1-6 use base EMI, months 7-12 use increased EMI)
- Amount: Enter the increment amount (e.g., 500 for ₹500 increase, or 5 for 5% increase)
- Is Percentage: Toggle to choose:
• OFF (Amount): Fixed rupee amount increment (e.g., ₹500 increase at month 6)
• ON (Percentage): Percentage-based increment (e.g., 5% increase at month 6)
6. Click "Calculate" to see your results
📊 Understanding the Results:
On the result page, you will see:
• EMI Breakdown by Period card showing:
- Period 1 (Step Up): Months 1-6 → EMI: ₹X,XXX per month (base EMI)
- Period 2 (Step Up): Months 7-12 → EMI: ₹Y,YYY per month (increased EMI)
- Total Amount, Total Principal, and Total Interest
• The EMI Summary will show the average EMI across both periods
• All other result fields reflect the combined amounts from both periods
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed
Compounding Frequency = Monthly
Increment Schedule:
- Entry 1: Interval = 6 months, Increment Amount = ₹500, Type = Amount (not percentage)
- (This means: EMI increases by ₹500 every 6 months)
BaseEMI (exact amortization) = ₹8,341.50 per month
EMI increases by ₹83.33 per month:
• Month 1 EMI = ₹8,341.50
• Month 6 EMI = ₹8,758.16
• Month 12 EMI = ₹9,258.16
Total Interest = ₹5,597.94
Total Amount Paid = ₹105,597.94
8. Step-Down Loan
Definition: EMI decreases gradually over time according to a predefined schedule (e.g., -₹500 every 6 months).
Formula:
Using exact amortization: Base EMI is calculated so the present value of all payments equals the principal
EMI progression: EMI_t = BaseEMI - (t-1) × Gradient per month
📋 Additional Fields Required:
When you select "Step Down" loan type, you will see a "Decrement Schedule" section with an "+ Add Entry" button.
Step-by-Step Example: First 6 Months, Then Months 7-12
To calculate a loan with base EMI for first 6 months, then decreased EMI for months 7-12:
1. Select "Step Down" from the "Loan Type" dropdown
2. Fill in the basic fields:
- Principal Amount (e.g., ₹100,000)
- Annual Interest Rate (e.g., 10%)
- Loan Tenure in months (e.g., 12)
- Interest Rate Type will auto-set to "Fixed"
- Compounding Frequency will auto-set to "Monthly"
3. Find the "Decrement Schedule" section
4. Click the "+ Add Entry" button
5. In the new entry that appears, fill in:
- Interval: Enter 6 (this means the decrement happens at month 6, so months 1-6 use base EMI, months 7-12 use decreased EMI)
- Amount: Enter the decrement amount (e.g., 500 for ₹500 decrease, or 5 for 5% decrease)
- Is Percentage: Toggle to choose:
• OFF (Amount): Fixed rupee amount decrement (e.g., ₹500 decrease at month 6)
• ON (Percentage): Percentage-based decrement (e.g., 5% decrease at month 6)
6. Click "Calculate" to see your results
📊 Understanding the Results:
On the result page, you will see:
• EMI Breakdown by Period card showing:
- Period 1 (Step Down): Months 1-6 → EMI: ₹X,XXX per month (base EMI)
- Period 2 (Step Down): Months 7-12 → EMI: ₹Y,YYY per month (decreased EMI)
- Total Amount, Total Principal, and Total Interest
• The EMI Summary will show the average EMI across both periods
• All other result fields reflect the combined amounts from both periods
Example with dummy values:
Principal Amount = ₹100,000
Annual Interest Rate = 10%
Loan Tenure = 12 months
Interest Rate Type = Fixed
Compounding Frequency = Monthly
Decrement Schedule:
- Entry 1: Interval = 6 months, Decrement Amount = ₹500, Type = Amount (not percentage)
- (This means: EMI decreases by ₹500 every 6 months)
BaseEMI (exact amortization) = ₹9,241.68 per month
EMI decreases by ₹83.33 per month:
• Month 1 EMI = ₹9,241.68
• Month 6 EMI = ₹8,825.02
• Month 12 EMI = ₹8,325.02
Total Interest = ₹5,400.19
Total Amount Paid = ₹105,400.19
Section 4: Understanding Results Page for Multiple EMI Periods
📊 EMI Breakdown by Period Card:
For loan types with multiple EMI periods (Hybrid, Floating, Step Up, Step Down), the result page includes a special "EMI Breakdown by Period" card that clearly shows:
⚠️ Important: The EMI Breakdown by Period card will always appear for Hybrid loans on the results page, as Hybrid loans always have two distinct phases (Fixed rate period and Floating rate period). For other loan types (Floating, Step Up, Step Down), the card appears when multiple EMI periods are detected in the calculation.
For Each Period:
• Period Label: Shows which months are covered (e.g., "Period 1 (Fixed Rate): Months 1-6")
• EMI Amount: The exact EMI you'll pay during that period (e.g., ₹8,791.59 per month)
• Number of Months: How many months this period covers (e.g., "6 months")
• Total for Period: Total amount paid during this period (e.g., ₹52,749.54 for 6 months)
Summary Section:
At the bottom of the card, you'll see:
• Total Amount: Sum of all payments across all periods
• Total Principal: The original loan amount
• Total Interest: Total interest paid across all periods
Example Display:
For a Hybrid loan with switch at month 6:
• Period 1 (Fixed Rate): Months 1-6 → EMI: ₹8,791.59 per month
- 6 months
- Total for this period: ₹52,749.54
• Period 2 (Floating Rate): Months 7-12 → EMI: ₹8,842.17 per month
- 6 months
- Total for this period: ₹53,053.02
• Total Amount: ₹105,802.56
• Total Principal: ₹100,000.00
• Total Interest: ₹5,802.56
💡 Key Points:
• For Hybrid loans: The EMI Breakdown by Period card will always appear, showing both the Fixed Rate period and Floating Rate period separately
• The EMI Summary card above shows the average EMI across all periods
• The EMI Breakdown by Period card shows the exact EMI for each period, including:
- The month range for each period
- The EMI amount for that period
- The number of months in that period
- The total amount paid during that period
• All other result fields (Total Payment, Total Interest, etc.) reflect the combined amounts from all periods
• This breakdown helps you understand exactly how much you'll pay in each phase of your loan, making it easy to plan for rate changes