EMI Calculator for Home Loan, Car Loan & Personal Loan in India

EMI Calculator: Plan and manage Loan EMIs using our calculator with ease. Our loan calculator can calculate the EMI online for various types of loans like home loan, personal loan, or car loan. This free loan calculator helps loan borrowers to plan repayment of the loan effectively.

What is EMI?

EMI is expanded as Equated Monthly Instalment, an amount payable each month to the financial institution or bank until the loan amount is completely paid off. Furthermore, it includes interest on the loan and the principal amount (to be repaid). Then, the sum of both the interest and principal amount is divided by the time, i.e., the number of months, involved. Also, this amount is to be paid each month.

Next, the interest of the EMI would be higher for the initial months and gradually it reduces down with every payment. In addition, it is the rate of interest that defined the percentage of the principal amount to be paid.

However, your monthly EMI payment won’t get affected, the amount of principal and interest will change with time. With every successive payment, you need to pay more towards the principal while less for the interest.

How EMI is calculated?

EMI can be calculated using an EMI calculator or manually with a formula. The formula to calculate the EMI is:

Where

E – EMI
P – Principal Loan Amount
r – denotes the monthly rate of interest (i.e., r = Rate of Annual interest/12/100).
If the rate of interest is 10 per annum, then r = 10/12/100 = 0.00833
n – is loan term/time/duration in months

For example, if you take a loan of ₹1,00,000 from the bank at 10% annual interest for a period of 10 years (i.e., 120 months), then:

EMI = ₹1,00,000 * 0.00833 * (1 + 0.00833)¹²⁰ / ((1 + 0.00833)¹²⁰ – 1) = ₹1,322

i.e., you will have to pay ₹1,322 for 120 months to repay the entire loan amount. The total amount payable will be:
₹1310 * 120 = ₹1,58,581

It includes ₹58,581 as interest toward the loan. If you want to calculate the home loan with prepayments, you can calculate it here.

How does EMI Calculator work?

Our EMI calculator is both easy and quick to perform. Furthermore, the colorful charts, graphs, and results make it convenient for users to understand. Next, you can use the EMI calculator for any type of loan, i.e., car loan, home loan, education loan, personal loan, and others. Mention the below-mentioned information in the EMI calculator:

• Principal Amount (loan you wish to avail)
• Loan Duration (months/years)
• ROI % (rate of interest in percentage)
• EMI in advance or arrears

A slider is available to adjust the desired value in the EMI calculator form. If you want to place a specified value, you can directly type the values in the boxes provided. As soon as the values are punched, the EMI calculator will calculate your monthly/annually payment (EMI) amount. Also, you will see a pie chart displaying the payment breakups for extended clarity. It showcases the percentage of total interest versus the principal amount in the total sum made against the loan.

Furthermore, it displays an accurate payment schedule showing the number of payments to be made each month/year for the complete loan duration along with a chart displaying interest and principal components to be paid each year. Also, if you want to limit your home loan schedule and cut down your total interest outflow, you can use our Home Loan EMI calculator with Prepayments.

Fixed-rate vs. Floating rate EMI calculation

There are two primary interest rate types: fixed and floating. As the name suggests, a fixed interest rate for your loan term remains unchanged. It offers certainty and stability, as you’ll know exactly how much your monthly repayments will be. In this case, the interest rate can decrease by 1% – 3% from the current rate. Calculate your EMI by keeping in mind this condition. In this settlement, your EMI will diminish, or you can opt to lessen the loan duration.

On the other hand, a floating interest rate can move up or down over time in line with market conditions. So while your repayments may change from month to month, it also offers the potential for lower rates if market conditions are favorable. In this case, the interest rate can go up by 1% – 3%. Even a 2% rise in the interest rate can significantly increase your monthly payment for the complete loan duration.

So, which type of interest rate is right for you? It depends on your circumstances and financial goals. If you prefer the stability of knowing what your repayments will be each month, then a fixed interest rate may be the way to go. However, if you are comfortable with a little bit of uncertainty and believe you could benefit from lower rates down the line, then a floating interest rate could be the better option.