You are here, which means You are searching for a suitable, easy to use and free **EMI Calculator**. You can **Calculate the EMI** online for your loans using our **EMI Calculator** for free.

## How EMI Calculator Works?

Here you will find about how **EMI Calculator** works and what information you need to use it?

But before that, you should learn more about EMI and **How to Calculate EMI**. Here I am going to explain about EMI & **How to calculate the EMI manually** using formulas and also I am sharing few examples to make you understand better.

## What is EMI?

The abbreviation or meaning of **EMI** is **Equated Monthly Instalment**. **EMI** is the amount payable every month to the bank, lender, or any other financial institution until the loan amount is fully paid off.

The **EMI** is a total of the interest on the loan and a part of the principal amount to be repaid.

The sum of principal amount and interest on the loan is divided by the repayment tenure, i.e., the number of months, in which the loan has to be repaid. Generally, this amount or **EMI** has to be paid monthly by the borrower.

The interest component of an **EMI** would be larger during the initial months of the loan and gradually reduce with each repayment of the loan EMI. Your **monthly EMI** amount won’t change, however, the proportion of principal and interest amount will change with time. With each successive repayment of loan EMI, you’ll pay more towards the principal and less in interest.

You can also **calculate the EMI** for your Home Loan calculation using our Home Loan Calculator. Our **EMI Calculator for a loan** is very easy to use for calculating interest on any kind of loan.

## How to Calculate the EMI?

You can calculate the EMI in two ways. One is by using our EMI Calculator and second is doing manually by using the below mentioned formula. If you want to use our EMIcalculator, simply scroll above, fill the details and hit the calculate button. Otherwise use the below mentioned formula to calculate your EMI.

Here’s the formula to **calculate the EMI**; **EMI** = [P x R x (1+R)^N]/[(1+R)^N-1]

Where –

**E**–**EMI**

**P**–**Principal Loan Amount**

**r**– The rate of**interest calculated on a monthly basis**. (i.e., r = Rate of Annual interest/12/100. If the rate of interest is 11% per annum, then r = 11/12/100=0.009166)

**n**is loan term/tenure/duration in number of months

For example, if you borrow a loan of ₹1,00,000 from the bank at 11% annual interest and for a period of 5 years (i.e., 60 months), then EMI = ₹1,00,000 * 0.00916 * (1 + 0.00916)^{120} / ((1 + 0.00916)^{120} – 1) = ₹2,174. i.e., you will have to pay ₹2,174 for 60 months to repay the entire loan amount. The total amount payable will be ₹2,174 * 60 = ₹1,30,440 that includes ₹30,440 as interest toward the loan.

**Calculating EMI** manually for different combinations of the principal loan amount, interest rates, and loan term by using the above EMI formula is time-consuming, complex, error-prone, and frustrating.

Our **EMI calculator** makes this calculation process simple for you. And gives you the result in a split of seconds along with visual charts or tables displaying the payment schedule and the break-up of total payment.

## How to Use the EMI Calculator?

With colorful charts, tables, and instant results, our **EMI Calculator** is easy to use and quick to perform. You can calculate EMI for home loan, car loan, personal loan, auto loan, education loan or any other fully amortizing loan using our **EMI Calculator**.

Just enter the following information in the **EMI Calculator** to **calculate EMI online**:

- The principal loan amount you wish to avail (in INR)
- Rate of interest (percentage)
- Loan Tenure (months or years)

You can use the slider to adjust the values in our **online EMI calculator** form or simply you can enter the desired amount by typing in the text boxes. As soon as the values are changed using the slider or entered manually (hit the ‘tab’ or ‘enter’ key after entering the values directly in the input fields). Our **EMI calculator** will re-calculate your monthly repayment (EMI) amount instanlty.

## EMI Calculator Chart

A chart depicting the break-up of total payment (i.e., total principal vs. total interest payable) is also displayed for a better understanding of EMI payment. It displays the percentage of total interest versus principal amount in the sum total of all payments made against the loan in total.

## EMI Calculator Repayment Table

The payment schedule table showing payments made every month for the entire loan duration is displayed along with a chart showing interest and principal components paid each year. A portion of each payment is for the interest while the remaining amount is applied towards the principal balance amount.

During the initial loan period, a large portion of each EMI payment is devoted to interest. With the passage of time, larger portions pay down the principal amount. The payment schedule also shows the intermediate outstanding balance for each month/year which will be carried over to the next year.

## Benefits of EMI Calculator

One can **calculate the EMI** manually but it is time-consuming and can kill your time. In this digital era is a bad idea for manual **EMI Calculation** because our **EMIcalculator** helps you in **loan calculation**, **calculate EMI Online**, **EMI Calc**, **EMI Rates** and **calculate interest on loan**.

Our **EMI Calculator for loan** shows the **loan calculation **that helps you to **calculate interest on loan**, **check EMI**, **EMI Rate**, **calculation rate of interest**. It is also called as **loan calculator EMI**, **calc loan** or **EMI calc**.

## Type of EMIs

Basically **EMIs** are described in two categories. One is **Flat EMI** and the other is **Monthly Reducing EMI**.

**Flat Rate EMI**– Flate Rate**EMI is calculated**on the whole amount and interest is added to the amount. To loan EMI Calculation the sum of Principle amount and Interest amount is divided by the number of months.**Monthly Reducing EMI**– Monthly reducing**EMI Rates**are different from Flat**Rate EMI**. These**EMIs Calculated**on the balance principal amount outstanding each month.

## Factors affecting your EMIs

If one is applying for any loan, he/she should know that there are many factors that affect EMI and loan amount. For instance, those are:

- Salaried Person, Self- Employed Professional or a Businessman
- Income per month
- Age
- Self and Co-applicant’s Qualifications
- Number of total dependants
- Co-Applicants Income (wife/mother/father, etc)
- Assets, Liabilities, and Stability
- Continuity of Occupation of the borrower
- Savings and Savings History

Further, the loan eligibility and number of EMI will also be dependent on your Credit Score.

## EMICalculator FAQs

**What is the meaning of EMI?**

The meaning of EMI is **Equated Monthly Instalment**. It can be repaid in the monthly, quarterly, half-yearly or yearly manner.

**What is an EMI?**

**Equated Monthly Instalment** or **EMI** in short is the amount payable every month to the bank, lender or any other financial institution until the loan amount is fully paid off.

**How is EMI Calculated?**

The mathematical formula for **calculating** EMIs is – **EMI** = [P x R x (1+R)^N]/[(1+R)^N-1], where P indicates the loan amount or principal, R is the interest rate per month, and N is the number of monthly installments.

**How to use an EMI Calculator?**

Just enter the following information in the **EMI Calculator** – The principal loan amount you wish to avail (in INR), Rate of interest (percentage) and Loan Tenure (months or years). That is all and your EMI will be calculated.

**How is Loan Interest and EMI Calculated?**

The mathematical formula for **calculating** EMIs is – **EMI** = [P x R x (1+R)^N]/[(1+R)^N-1].

Where – **E** is EMI, **P** is Principal Loan Amount, **r** is the rate of interest calculated on a monthly basis, and **n** is loan term/tenure/duration in number of months

**What is EMI in advance and EMI in arrears?**

In the normal **EMI** schemes (also called EMI in arrears) some amount of the loan will be transferred to the loan borrower and **EMI** of a fixed amount will start from the end of the first month. But in the advance EMI scheme, the first month **EMI** would be deducted from the amount disbursed and the remaining will be paid afterward.

**Can I pay EMI before the due date?**

Yes, you can pay your EMI before the due date. But you have to check with your lender. Most of the lenders accept EMIs before the due date.

**Can I pay advance EMI?**

Yes, off course but it also depends upon the lender to lender. Some of them may except or some of them may not.

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