EMI Calculator

You search for a free online EMI Calculator tool ends here. You can plan or manage your loan EMIs using a loan calculator on ease. Our loan EMI calculator can calculate the EMIs online for the different types of loans. These loans can be a home loan, personal loan, or car loan. EMIcalculator.org’s free tool helps borrowers to plan & pay their repayment of the loan effectively.

What is EMI?

The EMI stands for Equated Monthly Instalment. EMI is the total amount that includes interest on the loan and part of the principal amount. The monthly 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 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 loan EMI repayment, you’ll pay more towards the principal and less in interest.

How to Calculate the EMI?

You can calculate the EMI by using free online EMI calculator or manually with formula. If you want to use the EMI calculator, scroll above, fill in the details and click on the calculate button. Otherwise, use the below-mentioned formula to calculate your EMI manually.

The formula to calculate the EMI is; 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 monthly. (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 take 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 using the above EMI formula is time-consuming, complex, error-prone, and frustrating. So, our EMI calculator makes this calculation process simple for you, giving 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 does EMI Calculator Works?

The EMI calculator works in three simple steps:

  1. Fill in the loan amount you want to take
  2. Now, fill in the interest rates at which you are going to get the loan
  3. Finally, fill the loan tenure and hit the Calculate button

That’s it! Our calculator will show you the breakdown of your loan in EMIs and illustrate the principal and interest paid each month separately in a table.

How to Use an EMI Calculator?

You can calculate EMI for a home loan, car loan, personal loan, auto loan, education loan, or any other fully amortizing loan using the EMI Calculator. Just enter the following information in the EMI Calculator tool and click on Calculate Button to calculate EMI online:

  • The principal loan amount you wish to avail (in INR)
  • Down Payment (if any, else keep it ZERO)
  • Rate of interest (percentage)
  • Loan Tenure (months or years)

Chart & Repayment Table

A chart indicating the Loan Details like Loan amount, Interest Rate, Loan Tenure, Total Monthly EMI amount, and the total number of EMIs, is also displayed to understand better. The EMI schedule table shows monthly repayments for the entire loan duration and additional information like principal amount for that month, interest paid for that month, total interest paid till that month, and balance amount.

During the initial loan period, a large portion of each EMI is repaid towards interest. With time, more significant portions pay down the principal amount.

Benefits of using Loan Calculator

The main benefit of using an EMI calculator is, it is easy to use & gives error-free results. Calculating the EMI with formula is a time-consuming and error-prone process. So, using an online free Loan calculator is the best idea. Our Loan calculator can help in loan calculation online for free with a lot of useful information displayed in a chart/table.

Type of EMIs

The main of EMIs are:

  • Flat Rate EMI – Flate Rate EMI is calculated on the whole amount, and interest is added to the amount. Divide the sum of the Principle amount and Interest amount with the number of months to calculate the EMI.
  • Monthly Reducing EMI – Monthly reducing EMI Rates are different from Flat Rate EMI. These EMIs Calculated on the principal balance amount outstanding each month.

Factors affecting your EMIs

The main affecting factors for your EMIs 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
  • Credit Score

EMI Calculator FAQs

What is the meaning of EMI?

The definition of EMI is Equated Monthly Instalment. 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 repaid.

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 every month, and n is loan term/tenure/duration in number of months

What is the difference between EMI in advance and EMI in arrear?

In the normal EMI schemes (also called EMI in arrears), some loan amount 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 afterwards.

Can I pay advance 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.

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