EMI Calculator
Loan Amount
Tenure (Years)
Interest Rate (P.A)
Use Online EMI Calculator and Get the EMI Amount Instantly

India’s lending market has seen considerable growth in the past few years. Borrowers can now easily avail financial assistance in the form of personal loans, home loans or car loans etc., from various lenders. Besides an easier loan availing process, borrowers can experience hassle-free repayment by planning monthly payables, i.e. EMI, beforehand.
It is here that the importance of the EMI calculator comes up.
What is an EMI Calculator?
An EMI calculator is a tool that helps loan applicants/borrowers to calculate the amount they have to pay every month until it reaches the end of tenure. Depending on the financial products, i.e. loans such as car loans, home loans, personal loans, loans against property, you can use a monthly EMI calculator and learn the payable amount.
This calculator gives you a rough idea about the amount to be paid every month and plan financial expenditure accordingly.
What is the Formula for EMI Calculation?
An EMI calculator uses the formula mentioned below,
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
- P - stands for the principal amount
- R - is the rate of interest
- N - is the loan tenure
This EMI calculation formula is standardised. Some variables can be added depending on the loan type.
With online EMI calculators, loan applicants can compute their monthly payables easily. For accurate results, provide the exact loan amount, tenure (in years), and interest rate (per annum).
This calculator shows instantaneous results as per the provided data. You can try various combinations and arrive at an EMI amount that you can afford.
Example of EMI Calculation
Enter these details in respective boxes to know your EMI amount. The calculator will show the following details.
Note: Besides a compound interest EMI calculator, simple interest EMI calculators are also available online.
Certain types of EMI calculators follow a different computing method. Usually, loans are repaid in EMIs, where borrowers pay some portion of the principal and some portion of the interest. As years pass by, the outstanding balance gets reduced, and interest is levied on the remaining balance.
This is called a reducing the rate of interest calculator or reducing balance EMI calculator. Using this, individuals who have taken reducing balance loans can calculate EMI and the amount they have saved on total interest. This calculator uses a method where interest is reduced after each EMI is paid, as the outstanding balance decreases with each payment of EMI.
What are the Benefits of an EMI Calculator?
The following are the benefits of using an EMI calculator:
- Easy Calculation: Computing the monthly payable is much easier with an EMI calculator. Loan applicants need to enter details of the loan amount, tenure, and interest rate, and the results will be computed instantly. As there is no manual intervention, the chances of miscalculation are nil.
- Easy Access: The EMI repayment calculator can be found online. Therefore, individuals can use it at any time as per their requirements.
- Time-saving: The calculator used for computing EMI uses special programs through which it can show results quickly. This saves time as individuals need not visit banks or lending institutions to know their EMI amount in case they want to change their loan amount, tenure, or get lower interest rates. Online EMI calculators help to complete these tasks in the blink of an eye.
- No Costs Involved: Since EMI calculators are available online and do not include a charge, individuals can use them without worrying about costs.
What are the Components of EMI?
Equated Monthly Income or EMI can be segregated into two components, namely interest and principal. During the first few years of loan tenure, repayments focus more on the interest component and less on the principal component. However, after some years, i.e., towards the end of tenure, borrowers pay more principal amount and less interest component.
What are the Factors Affecting EMI?
When individuals take a loan, they need to calculate their repayment amount, which they will pay throughout the tenure in equated monthly instalments. Hence, you must know the factors that affect EMI. Primarily, this includes principal amount, interest rate, and tenure.
From the above discussion, you can get comprehensive knowledge about an EMI calculator, its calculation process, benefits and many other things. Read these details attentively to get a suitable EMI and ensure a hassle-free loan availing experience.
Important Calculators that will Help You Calculate Your EMI