EMI Calculator

Do you want to learn more about EMI loan calculators? Here, we will discuss what is EMI calculator? How to calculate EMI? And many more details about it.

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4 %
24 %
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1 Year
30 Year
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Total EMI Payable

₹ 0

India's lending industry is consistently growing. It is now the globe's fourth-largest lending sector, with a CAGR of more than 11% year after year. Short-term lending, like personal loans and credit cards, accounts for the vast bulk of these advancements. Those 2 financial instruments make up 70% to 80% of total credit lending in India when merged. Lenders include EMI in debt payments, and debtors must evaluate the equated monthly instalment amount while planning their present and future expenditures. Various EMI calculators are available on the internet; nevertheless, one must select an effective EMI generator and understand how to use it to determine the precise EMI amount due on a mortgage.

Did you know?

An EMI scheme is nothing but a loan product, where you get to buy and start using the merchandise immediately without having to pay the whole amount right away.

What Is an EMI?

The equated monthly instalment is just a preset payment that the borrower pays to the creditor regularly. Every month, EMIs repay both the original amount and the interest, and in this way, you repay the whole loan within a set period. The debtor, in this case, may be yourself, and the creditor is the bank that provides you with the loan. 

Consider the situation where you borrowed cash from a buddy but could not repay the total sum in a single try. You and your partner then agree to repay a portion of the loan each month, across a set length of time, at a set cost of borrowing, till you repay him fully.

What Is an EMI Calculator?

An EMI converter is a handy tool that lets you figure out how much you'll have to pay back monthly on the mortgage. Anyone can use the EMI estimator to figure out how much your EMI will be on a vehicle, home, motorcycle, or student loan, and you will know how much you'll have to pay back monthly upon those loans. With the bank loan, the duration of years, and the cost of borrowing, the EMI estimator contains three variables in a window. After you've filled in the parameters with the selector, the EMI estimator will display exactly what you'll have to pay monthly to repay the debt in the time frame you've chosen.

Also Read: Effect of GST on Air Conditioners

How Does the EMI Calculator Work?

It uses the below mathematical equation to compute the periodic amount due to the creditor.

EMI = [P x R x (1+R)N]/[(1+R)N-1]

Here P, R, & N are different variables, implying that the EMI values will vary if there is any change in any of the variables. Let's take a closer look at these three factors.

The letter P donates the 'principal amount'. That's the money that the financial institution originally lent to you. You can determine the loan amount according to your requirements and the loan's objective. The EMI you repay for the mortgage will increase as the credit amount increases.

R stands for 'rate of interest.' That's the rate of return it applies to the initial amount borrowed. The cost of borrowing will differ depending on the kind of loans and the creditor (banking) from whom you are borrowing. Because the interest rate directly affects your monthly EMI, it's critical to check borrowing costs among banks when taking out a loan.

Figure N denotes the length of time you take the loan, and the tenure is just the term for this time frame. A loan's term relates to the time it takes to pay back loans. Because you make the payments every month, they measure it in months rather than years.

To further understand how the EMI estimator operates, consider the following example. You took out a three-year loan for ₹ 20 lakhs at a 10% interest rate.

EMI = [P x R x (1+R)N]/[(1+R)N-1]

P is equal to ₹ 20,00,000, N = 3 years or 36 months, R = 10/100/12 (convert to months).

EMI = [20, 00,000 X 0.00833 X (1+0.00833)36]/(1+0.0083)36 – 1]

EMI= ₹ 64,534

Types of EMI Calculator

EMI calculators come in various shapes and sizes, depending on the kind of loan you select.

Home Loan EMI Calculator

You use the house loan EMI estimator to figure out how much you'll repay in EMIs if you take out a house loan. Since purchasing a house is a major personal and economical choice, applying for a housing loan necessitates extensive planning and study, particularly due to the loan's lengthy period and large principal amount. The bank approves these loans depending on the value of the asset and the debtor's ability to pay it back. These are long-term loans with a maximal repayment period of 30 years. You may enter the total amount, term, and cost of borrowing to estimate your home mortgage depending on your needs and qualifying conditions.

Car Loan EMI Calculator

The vehicle loan EMI estimator calculates your monthly payments depending on the principal amount, term, and rate of return. Creditors offer a variety of financing options for both new and used cars. Purchasing your favorite car necessitates a significant financial commitment, which you may reach with the help of an auto loan. Nevertheless, you must bear in mind that you have to repay the auto loan amount within a 5 years period along with the rate of interest. When you cannot repay the debt, the creditor may repossess your car and sell it at auctions to recoup the remaining balance.

Education Loan EMI Calculator

The expense of school has risen dramatically, making it increasingly hard for parents to provide their children with proper education. Through instalments, an education loan covers the expense of a child's education both in the nation and overseas. Using an EMI estimator for an EL, you can figure out how much you'll have to spend each month to repay the loan and interest. In the event of an EL, payments don't begin immediately but rather after a waiting period, which is normally six months once the course completion or when the pupil obtains employment, whichever comes first. There are generally few advantages if you aim to begin repaying your student loan during the waiting period.

Personal Loan EMI Calculator

PL is "all-purpose financing," which means you can use them for anything, such as paying for travelling or hospital bills. Because it is an unsecured loan, the interest rates are greater, and the term is smaller. The PL EMI estimator is an excellent tool for determining your repayments capacities and determining a principal balance that you are comfortable repaying. It uses similar inputs as other EMI calculations, like the loan amount, repayment period, and interest payment. You can play with the EMI estimator to find a loan amount that meets your needs and is manageable to repay.

Also Read: Know About the GST on Motor Cars and Light Motor Vehicles

Loan Against Property EMI Calculator

A credit against an asset is a secured creditor that you can use to finance any asset which you possess (housing, industrial, or agricultural) as long as it is a mortgage with the creditor. Compute the EMI for such a mortgage using an EMI estimator for LAP such that you do not surpass your ability to repay and wind yourself in serious debt. Because it's a secured creditor, the lenders can take the assets you commit as security to cover the deficit if you don't maintain pace and your EMI monthly payment. To obtain the results EMI amount payable, all of the calculations mentioned above operate on the same variables using the same EMI estimator algorithm.


The greatest option is to avoid getting into financial difficulties in the first instance. 'Security' is among the central principles of financial management. Risks abound in our lives, and while you can't change what's intended to be, it's a good idea to prepare for the unexpected.

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Frequently Asked Questions

How can I make the best choice when using an EMI calculator?

The EMI estimator is a really useful tool since this calculates the credit EMI and compiles a selection of the top loan options depending on your qualification and loan preferences. By using the EMI estimator, you can evaluate EMIs for various loans. Anyone can rationalise by comparing the tabular listing of mortgages to established parameters.

Can I use the same EMI calculator for home, car, and personal loans?

The similar three factors are usually used by house loan EMI calculators, vehicle loan EMI calculators, and PL EMI calculators. The loan amount, the length of the mortgage, and the cost of borrowing are all factors to consider. The key distinction among the simulators is the highest principle sum that can be entered; this limitation forces one to select an EMI converter depending on the kind of debt.

Do EMI calculators give more accurate results than excel sheets?

Both spreadsheet and the internet EMI estimator can provide precise findings. The only significant difference is that an online tool saves you time and effort by tabulating your EMI in moments rather than hours or days. To use an excel format converter, on the other hand, may require more time and attention. As a result, calculators have become a more popular option.

Are EMI calculators more accurate than excel calculators?

If you know how to use an excel converter, you can get your desired outcomes. You may receive instant results by using an EMI estimator.