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Slide the bars to adjust the numbers

Select Loan Amount

  260000

Select number of months

  36

Select interest rate

  14.2

EMI Payable


Total Interest


Payable Amount

How to use this EMI Calculator?

  • Use the slider for Selecting Loan Amount
  • Select the Loan tenure in Months using slider
  • Move the slider and select the Interest Rate
  • Recalculate your EMI anytime by changing the input sliders
  • EMI will be calculated instantaneously when you move the sliders.

Payment Breakup

Monthly Repayment schedule

Try our other EMI Calculators

 

What is EMI?

Let’s say you borrow some money from a close friend. And because of some unforeseen circumstance you are not able to repay the money in full. So, you talk to your friend and decided to return the money in small amounts, over a period of time. Ergo, an EMI.
EMIs or Equated Monthly Installments are pre-defined sums that a borrower pays to a lender till the loan amount has been completely paid. The borrower here is you, and the lender is the bank you took your house loan, car loan, or personal loan from.

Formula for calculating EMI

The mathematical formula for calculating EMI is:
[P x R x (1+R)^N]/[(1+R)^N-1]

The formula depends on three different variables, which are:
P – This stands for ‘Principal’. The principal is the original loan amount given to you by the lender, on which the interest is calculated.
R – This is the rate of interest set by the bank. The rate of interest differs according to the loan type.
N – Number of years for which the loan has been taken. Since EMIs are paid every month, the duration is calculated in number of months.
So, assuming that you take a car loan of Rs. 2 lakhs with an average interest rate ofs 12%, the approximate EMI will be:
P = 2 lakhs
R = 12%
N = 2 years or 24 months

EMI = [200000 x 12/100 x (1+12)^24] / [(1+12/100)^24-1]
= Rs. 9440

How to Use EMI Calculator?

To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values for principal (P), time duration (N), and rate of interest (R).

Types of EMI Calculator

There are different types of EMI Calculators depending on the kind of loans taken. These are:

Home Loan EMI Calculator

Home Loans are one of the most common bank loans taken every year. These are loans with usually large principal amounts, and a long tenure. This is why it is very important to make all your calculations properly before you take a home loan. Our easy-to-use Home Loan EMI calculator will let you know how much EMI you need to pay for the loan amount, so that you can have your finances in order before approaching the bank.

Car Loan EMI Calculator

The perfect set of wheels can also set you back by a substantial amount. Before you buy your dream car, be sure to run the numbers through our Car Loan EMI Calculator. There are many schemes in the market for buying cars, which can be very tempting. However, it is important to remember that if you are unable to pay your car loan amount in full, your vehicle can be repossessed by the banks.

Personal Loan EMI Calculator

You can take a personal loan for various reasons which include house renovation, a vacation abroad, maternity expenditures and other personal needs. These are “all purpose” loans, which are generally unsecured. Hence, the rate of interest is higher and the duration is shorter than other loans. Before you ask the bank for a personal loan though, make sure to know the applicable EMI by using our Personal Loan EMI Calculator.

Education Loan EMI calculator

The cost of education keeps going higher every year, and if you are planning to send your child abroad for higher education, you may be in need of an Education Loan. Generally, these loans come with a moratorium period so that one can start paying off the loan only after the education is complete. You can use our Education Loan EMI Calculator to find out the EMI amount you will have to pay for this loan.

Loan Against Property EMI Calculator

If you have any residential or commercial property, or land registered under your name, you can use this as collateral to obtain a loan against property (LAP). These are secured loans, where you mortgage property as security. You can use our Loan Against Property EMI Calculator to understand how the EMI scheme in this case will work.

How does an EMI Calculator work?

An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender according to the following variables:

Principal Loan Amount: This is the original amount lent to you by the bank/lender. The loan amount will depend on your need and the purpose of the loan. Higher the loan amount, the higher will be the EMI that you pay for the loan taken.

Tenure: The tenure of a loan refers to the total time period given for the repayment of the loan. Since the repayment is done every month, the tenure is calculated in months and not years. So, a tenure of 2 years is equal to 24 months, and so on.

Rate of Interest: This is the rate at which interest is charged on the principal loan amount. The interest rate varies according to the type of loan taken and the lender (bank) from which you are taking the loan. The rate of interest has a direct bearing on your EMI amount; hence, it is important to compare interest rates across banks before opting for a loan.

What is Loan Amortization Schedule?

An amortized loan is designed to allow the borrower to pay off the loan in full over a certain period of time, in equal monthly loans. Now, the EMI that you pay against the loan you have taken is composed of two parts:
An interest part that is used by the bank
A principal part that is used to repay the original loan amount

As you keep paying your EMIs, the original principal amount keeps reducing. Over time, the interest on the loan amount decreases and the principal part of your EMI increases. At the end of the tenure, you would have paid off the principal amount in full.

A Loan Amortization Schedule keeps track of this EMI breakup, so you know exactly what portion of your EMI has been used for paying interest and what is used to reduce the principal. This schedule can be very helpful in understanding prepayment of loans and for refinancing, if required.

Factors Affecting Loan EMI

There are several factors that affect the EMI calculation. Since the EMI depends on the principal amount, tenure, and rate of interest, any change in these variables can cause a change in the EMI amount.
Change in interest rate: Loan interest rates can be fixed, floating, or hybrid. In case of a fixed interest rate, the rate remains the same over the loan period. A floating interest rate is linked to the MCLR (Marginal Cost of Funds Based Lending Rate) and can change multiple times over the loan period. This may change the EMI calculation for your loan. A loan with a hybrid interest rate has a fixed interest for a certain duration, after which the interest rate is decided by the MCLR. The EMI can change even for such loans.

Change in tenure: If you change banks and carry over your loan to the new bank, the tenure of your loan may change in some cases. This will affect your EMI calculation. The EMI can decrease if the tenure increases and vice versa.

Prepayment of loan: If you prepay your loan, the prepayment amount will be deducted from the original principal, effectively reducing your loan amount. If the tenure remains the same, the EMI can either decrease or stay the same. In the latter scenario, the portion of the EMI used for repaying the principal will increase, since the effective interest would be lesser than the original calculation.

Benefits of EMI Calculator

Even before you apply for a loan, you need to know if you have the ability to obtain a loan. This can be done with the help of a EMI Calculator. Calculating your EMI will let you budget better in order to make the EMI payments on time. The other benefits of the EMI Calculator include:

Accessibility: You can use the EMI Calculator anytime, anywhere and make your budget calculations.
Accuracy: Using a EMI Calculator is more accurate than calculating the numbers yourself.
Financial Planning: As stated above, EMI calculations need to be done even before you start your loan application. A EMI Calculator can help you with this.

EMI Calculator FAQs

Q: How can I use the EMI Calculator to find the best loan for my need?

A: You can use the EMI Calculator to compare loans from different banks, as each bank has its own interest rate. The tenure may also differ from bank to bank. This way, you will be able to find the best loan with the least EMI that suits your goals as well as your pocket!

Q: Are EMI Calculators more accurate than Excel Calculators?

A: Well, they are definitely more handy! An Excel can also give you correct results as long as you are well-versed in it. Alternatively, you can use a EMI Calculator to get the results within seconds.

Q: Will the EMI calculated by the bank be different than that calculated by the EMI Calculator?

A: The EMI Calculator will calculate numbers according to your inputs. If when taking the loan from the bank, you find that there are differences in tenure, interest rate, or actual principal amount (post deductions) as stated by the bank, then the EMI calculated may vary slightly.