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EMI Calculator

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An online EMI calculator helps to calculate equated monthly installments (EMIs) that you have to pay the lender/bank each month till the loan is fully paid. The EMI loan calculator will show the visual charts repayment schedule and the break-up of total payment. With the help of this calculator, you can calculate EMI for:

What we are going to discuss here is the emi formula, how to calculate emi (step-by-step) and with a calculator, and all you need to know about loan emi calculations.

First, let’s explore the basic definition of EMI (equated monthly installment)!

What Is EMI (Equated Monthly Installment)?

An EMI stands for Equated Monthly Installment; it is a financial term that is utilized for loan repayments. In simple words, EMI is a quick and easy method to pay off any type of loan. No doubt, when an individual takes a loan from a bank or financial institute, normally the repayment of the loan is made mainly in specific monthly installments. Yes – these fixed financial installments are referred to as EMI’s. Keep in mind; the amount of EMI is based on the principal loan amount, tenure and the interest rate, our loan emi calculator is also dependent on these factors.

What is The Formula of EMI?

Our accurate emi calculator also uses the same EMI formula for calculating (Equated Monthly Installment). If you want to calculate EMI manually, then you have to put the values in the given formula for EMI’s:

EMI Calculation Formula Is:

EMI = [P *R *(1+R)N] / [(1+R)N– 1]


‘P’ is the loan amount or principal

‘N’ represents the number of monthly installments

‘R’ represents the interest rate per month – if the ‘R’ per annual is 10 %, then the value of ‘R’ will be 10/12 * 100

Additionally, you can use our personal loan emi calculator for personal loan, car loan, and home loan emi calculation.

What Are The Factors That Affect the Loan’s EMI?

Following different methods affect the EMI of the loan:

Loan Amount:

Greater the loan amount, the greater the equated monthly installment(EMI).

Loan Term:

The loan term is the period of repayment of the loan and it is inversely proportional to the Equated Monthly Installment (EMI). The greater the loan term, the lower will be EMI or vice versa.

Rate of Interest:

The amount is to be paid during the repayment period with the monthly installment termed as interest. The rate of interest is also directly related to Equated Monthly Installment, higher the interest rate increases the EMI of the loan.

About EMI calculator:

An online personal loan emi calculator allows you to calculate emi (equated monthly installment) according to your total principal amount. This calculator for equated monthly installment lets you know how much EMI will be required to be paid. Give a try to this free emi loan calculator to get an exact EMI payable before applying for any loan.

Nowadays, the banks and financial institutions in India will offer different kinds of loans to fulfill the different property buying needs of the residents. Well, some banks in India offer efficient and best equated monthly installment calculator to help the borrowers to determine the equal monthly installments.

How to Use this Calculator To Calculate EMI?

This Emi calculator is the best option for the loan applicants as it allows to calculate the monthly installments and even the complete schedule of the payments. Stick on the given steps to calculate EMI of your loan:


  • First of all, you have to enter the principal loan amount in Indian Rupees that you wish to avail or already availed in the field of ‘Loan Amount.’
  • Right after, enter the rate of interest (percentage) in the field of ‘Interest Rate %’.
  • Then, you ought to enter the loan term in years in the field of ‘Tenure Years’.
  • Finally, hit the calculate button of this emi calculator.


The calculator will calculate:

  • Equated Monthly Installment(EMI) of loan.
  • Loan amount.
  • Interest rate (%).
  • Tenure(Years).
  • Total interest payable.
  • Total amount payable.
  • Number of payments.
  • Graph of interest paid, Principal paid and principal remaining.
  • Complete loan repayment amortization schedule.

The Calculation For Floating Rate EMI:

We recommend you to calculate the EMI for floating rate by taking the two opposite schemes:

  • Deflationary (Optimistic).
  • Inflationary (Pessimistic).

Remember that two components that are required to calculate EMI are loan term and loan amount, they both are under control, but the interest rate is the component that is decided by the lender or bank. When you are going to take loan, you should consider the two possibilities of increase or decrease of the interest rate and calculate the EMI under these two conditions.

Deflationary (Optimistic) Scenario:

In this situation, the rate of interest comes down to 1%-3% from the current rate. In deflationary, the EMI will come down or you should have to decrease the loan tenure.

Inflationary (Pessimistic) Scenario:

Consider that, the rate of interest increased up to 1%-3%from the present. Is it possible for you to repay the loan with this increase? Because only a 2% increase in the rate of interest significantly increases the monthly payment for the loan term.

What is Flat-Rate EMI?

In flat-rate EMI, the rate of interest is always calculated by considering the principal/total loan amount you took. It means, either you repay the loan in 10years or in 15years, the interest is always calculated according to the same principal loan amount.

Benefits of Knowing Your Home Loan EMI in Advance:

The benefits of knowing your home loan EMI in advance are includes:

  • An EMI helps in knowing loan affordability.
  • It helps you in deciding the amount of the loan.
  • It helps in planning out the repayment of the loan.
  • Also, it helps in planning the prepayment process of the loan.

This home loan emi calculator assists you to determine the equated Monthly Installment(EMI) for the repayment of home loan.

Before Buy a New Car:

No doubt, buying a brand new car involves several steps, so the first one is to start with a feasible budget. Our car loan EMI calculator will assist people in their decision to choose the best car that fits their budget. Typically, people use this tool to get an accurate idea of how much they will be able to spend on a car.

How to Calculate EMI in Excel?

You can find out the Equated Monthly Installment (EMI) in excel by just uses the PMT function. The EMI calculator excel uses the following formula in excel:

=PMT (rate, nper, pv)


rate=Rate of interest.

nper=Total number of payments.

pv=Principal value.

How to Calculate EMI (Step-By-Step)?

There are two simplest ways that help you to calculate EMI. You can readily calculate it in a flat interest rate or reduce the balance interest rate. The given methods are used for calculating EMI for both interest rates is given.

Flat Interest Rate:

When it comes to the flat interest rate, you can easily calculate the interest on the initial loan amount that you acquired and is applicable through the loan term. This offers the same interest rate every month. Usually, the flat interest rate is applied on a car loan.

This is the formula that you can used for calculating the flat interest rate EMI.



P = Principal amount of loan.

R = Rate of interest.

N = Period of loan in months.

Let’s try an example:


You are taking the loan of ₹ 1000000 for 8months at an interest rate of 10%. Find the Equated Monthly Installment of loan?



P = ₹ 1000000

R = 10% yearly = 10/(12*100) = 0.008monthly

N = 8months.




EMI=₹ 125000.00

Reducing Balance Interest Rate:

The second method that is used to calculate the EMI is by reducing the balance interest rate. In this method, the interest rate is determined on the outstanding balance of the initial loan amount availed by the borrower. That’s the reason why the interest varies for different months.

You can use the given formula to calculate a reducing balance interest rate:

The formula used to calculate the EMI for the loan is as follows;

EMI = [P *R *(1+R)N] / [(1+R)N– 1]

Quit worrying step-by-step calculation for the loan EMI is easy. Let’s define it with an example.

Read on!


If you are going to take the loan of ₹500000 for 14years and the interest rate is 12%. What is the Equated Monthly Installment(EMI) of the loan?



P = ₹500000

R = 12%yearly = 12/(12*100) = 0.01monthly

N = 14years = 168months


EMI=[(500000)*(0.01) (1+0.01)^168 ]/([(1+0.01)^(168 )-1])

EMI=[(5000)(1.01)^168 ]/([(1.01)^(168 )-1])

EMI=[(5000)(5.3209698)^ ]/([(5.3209698)^ -1])



Loans That Offers EMI (Equated Monthly Installment) Payment:

We are going to discuss all the options that offer EMI payment plans! But, before knowing these options you should beware of what is an installment loan? An installment loan is referred to as a general term that used for both personal and commercial loans offered to the borrowers. Well, these are the loan options that offer an equated monthly installments to their borrowers.

Personal loan:

Personal loans are referred to as the loans that you take out for personal reasons including:

  • Vacation funds
  • unexpected medical bills
  • purchasing personal needs etc

Remember that when you acquire a personal loan, you should have to pay both the interest rate and principal amount on an installment basis until fully paid. So, you can use an online emi loan calculator that enables you to perform personal emi loan calculations accurately.

Most personal loans are not backed by collateral because they are unsecured. Usually, the loan term lasts from 2 to 5 years. If you have a good credit score and a good reason behind your loan application, then you can get the best personal loan offer.

Car loan:

Another emi installment loan available is a car loan that is sometimes also referred to as a vehicle loan, automobile loan, or auto loan. A loan for a car is what people apply for when they need to purchase a vehicle but they do not have the full amount to pay for it. You can give a try to an online vehicle loan emi calculator helps to determine the loan repayment amortization schedule of your car loan.

Home loan:

A home loan or mortgage loan is referred to as a loan option offered by banks and other lenders for those people who want to purchase a residence. An individual who needs to purchase a home can apply for a house loan to aid them with the purchase. Our housing loan emi calculator allows you to do estimate the home emi that you need to pay the lender/bank each month till the home loan fully paid.

How to Manage EMI?

Knowing how to manage EMIs is important as it will ensure that you are in control of your payments. Managing EMI is a skill, and you are responsible to master this skill to get an advantage. The basic purpose of EMI management is to repay your loan amount without feeling any financial pressure. These are some tips that can guide you in managing your EMI properly.

Think Before You Borrow:

Remember that you ought to think twice or even thrice before you borrow money. You should have to evaluate your situation and ask yourself if you really need to acquire a loan. Getting a loan in order to purchase home appliances, furniture, or gadgets is not an ideal approach. Moreover, you just ought to stay away from the loans that do not make tangible assets except for an educational loan.

Apply For a Shorter Loan Term:

A shorter loan term indicates a less interest rate to pay. If your financial terms enable you to pay your loan in the short term, then you ought to choose a short term loan payment scheme. Only a few banks/lenders permit advance Equated Monthly Installment (EMI) payments from their borrowers. If it happens to have some extra bucks, then you can consider your EMI in advance to shorten the length of your loan term.

Maintain An Excellent Credit Score:

If you have a good credit score, you can get a better loan deal. If lenders see your creditworthiness, they can offer you loans with a low-interest rate. A low credit score often indicates that a borrower is unlikely to pay, that’s the reason why lenders impose a higher interest rate on their loan.

Research and Compare:

You have to make a thorough research of all banks and lenders around your area by using the internet. All you need to begin comparing the loans offered by several lenders and choose one that suits best Your needs and capability. Once you know what loan works for your situation will make you more prepared in managing your Equated Monthly Installments (EMI).

Never Delay, Never Miss:

Delayed and missed payments are something that usually results in acquiring a loan that really doesn’t fit you! This is a well-known instance of why you have to conduct research and compare several loan offers before applying.

Delayed and missed payments are the biggest mistake that people often commit while managing their EMI, as it will only add extra charges for you! If you are delayed or missed a payment, your credit score will be negatively affected, and the lender will charge your penalties.

How is the borrowed amount and interest due paid through EMIs?

Remember that each EMI repays a part of the principal that referred to the borrowed amount and the interest due on the borrowed amount. The proportion of each EMI is taken into account for repayment of principal and interest, however, varies over time.

In general, banks and financial institutions calculate EMI by using the common mathematical formula for Equated Monthly Installment (EMI). EMI is calculated for a given loan amount, loan tenure, and interest rate, and that’s the reason “why the amortization-repayment schedule offered by banks and Non-Banking Financial Companies (NBFCs) will typically be similar.” This indicates that the pattern of reduction of principal amount via payment of each EMI will usually follow a similar trend through all financial institutions.

Note that the initial EMI’s (Equated Monthly INstallment’s) contribute more towards payment of interest due as compared to the principal amount. However, during the loan tenure, subsequent Equated Monthly Installments contribute more towards the principal repayment amount as compared to previous EMIs.

Frequently Ask Questions(FAQ’s):

What is the EMI for a 20 lakhs home loan?

The EMI of a loan is affected by the tenure of repayment, if the loan term is high the EMI will be low or vice versa. So, The EMI for 20Lakhs home loan in 15 years, will be 17,809 and in 20years it will be 15,326.

How Much Will EMI reduce?

If the interest rate is reduced to 9% from 10%, then Equated Monthly Installment(EMI) decreases to Rs41,960 from Rs45,435 on a loan of 50lakh.

What is EMI full form?

EMI stands for the “Monthly Equated Installment”.

How is EMI calculated for education loans?

Follow the given points to calculate the EMI for education loans from this online education loan emi calculator:

  • Enter the principal amount of the loan.
  • Then, enter the interest rate.
  • Finally, plug-in the tenure.
  • Lastly, hit the calculate button.

How much personal loan can I get if my salary is 50000?

A man has ₹50000 salary and wants to take a personal loan. The bank will lend him a loan with ₹25000 EMI and gives him a 13.33 lakh loan.

Can I get a personal loan of 20 lakhs?

You can get 20 lakh personal loan if you are according to the following requirements:

  • Age between 23-55years.
  • You are self-employed or salaried.
  • Your Credit Information Bureau score is above 75.

Is it better to reduce EMI or tenure?

It is best to reduce the tenure of the loan if you are able to pay the higher EMI. By doing this, you can save your money which you have to pay as interest.

What is the impact of part payments on EMI?

Part payments typically reduce the outstanding loan amount, which as an outcome reduces the interest amount due. The contribution of EMI towards the principal repayment increases without changing the EMI post part payment. That’s the reason why the loan gets repaid faster.

How does Home Loan EMI payment reduce tax obligation?

Those Provisions, which are under Income Tax Laws enable Indian National’s (Indian residentials) to claim income tax relief on payments that made towards interest and the principal amount of home loan. You can use this free mortgage calculator online to get an estimation of your monthly mortgage payment.

What happens in the case where the interest rate reduces or increases during the tenure of your loan?

When it comes to a floating plan, the EMI varies with changes in the market rates. You have to pay more when the market rates soar and even end up saving when they take a dip. Different banks and financial institutions make adjustment in such a way that keeps the EMI constant with the tenure of the loan fluctuating.

What happens when you partially prepay the loan?

If an individual wants to become debt-free as soon as possible, then he/she have the option of prepaying his/her amount of loan partially or fully. Remember that repaying the loan amount early reduces your future EMI payments, even banks may stipulate a time period before which the repayment cannot be initiated and even may charge a prepayment penalty.

What happens if you skip your EMI?

Well, if you default on your EMI payments, the bank will charge a late payment fee. Also, your EMIs payment may tend to be more in the future. Moreover, the credit score may take a hit, so, the better approach is to plan your finances right!


Remember that the EMIs are structured in such a way that the interest portion forms a major part of the payment, which is made in the initial years. And, when it comes to the later years, the principal component becomes high.  The calculations that are given by this online emi calculator helps you to plan your EMI when you take a loan; all the calculations are just estimations. So, before making any decision, you ought to consult with your finance expert – Good Luck!

From the source of Wikipedia: Equated monthly installment (all you need to know about EMI)

From the source of businesstoday: How to calculate the EMI on your loan

From the source of londonlovesbusiness: Everything you need to know about equated monthly installments: Written by JOHN SAUNDERS