A Tractor EMI calculator (Equated Monthly Installment) is the monthly payment made to a financial institution or bank to repay a tractor loan. This payment includes both the loan interest and a portion of the principal amount.

The total repayment amount is divided by the loan term, which is the number of months you have to repay the loan. You make this payment every month. At the start of the loan, the interest component of the EMI is higher, but it decreases over time. Meanwhile, the principal component increases as you make payments. Although the total EMI amount remains the same throughout the loan term, the balance between the principal and interest in each payment changes, with more of your payment going toward the principal as you progress.