1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a home loan, combining both principal and interest components. This calculator helps compare US and Canadian mortgage scenarios.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (USD or CAD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (years × 12)
• \( PMT \) — Monthly payment amount

Explanation: The formula calculates the fixed payment needed to fully amortize a loan over its term.

3. Interest Rate Differences

Details: US mortgage rates typically range 6-7% p.a., while Canadian rates range 5.5-7.5% p.a. This calculator helps compare payment scenarios in both currencies.

4. Using the Calculator

Tips: Enter loan amount in USD or CAD, annual interest rate (without % sign), loan term in years, and select currency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Are there additional costs not included?
A: Yes, this calculates principal+interest only. Property taxes, insurance, and fees are extra in both countries.

Q2: How do US and Canadian mortgages differ?
A: US offers fixed rates for entire term, while Canada typically has 5-year terms with refinancing.

Q3: What's the maximum loan term?
A: US allows up to 30 years, Canada up to 25 years for insured mortgages.

Q4: Should I account for currency conversion?
A: For actual cross-border moves, consider exchange rates and conversion fees.

Q5: Are down payments different?
A: US typically requires 3.5-20% down, Canada requires 5-20% depending on home value.