EMI Calculator

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 a 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 stands for Equated Monthly Instalment that is repaid towards a loan. EMI is the total amount that includes interest on the loan and a part of the principal amount. The monthly EMI is the amount payable every month to the bank or lender until the loan amount is fully paid off.

The interest component would be larger during the initial period of the loan that is gradually reduced with each repayment of EMI. The monthly EMI amount won’t change; however, the proportion of principal and interest amount will change with each EMI repayment.

Types of EMI

The main types of EMI are:

  • Flat Rate EMI – Flat Rate EMI is calculated on the whole loan amount with addition of interest for entire loan duration. The sum of the Principle amount and Interest amount will be divided by 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.

What is EMI calculation formula?

EMI can be calculated using an EMI calculator or manually with a formula.

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

How does EMI Calculator works?

The EMI calculator works in the below-mentioned simple steps:

  • Fill in the loan amount you want to take
  • Now, fill in the interest rates at which you are going to get the loan
  • Mention the down payment, if any
  • Finally, fill the loan tenure and hit the Calculate button. That’s it!

Our calculator will show the breakdown of loans in EMI and illustrate the principal and interest paid each month separately in a table.

How to Use an EMI Calculator?

A loan borrower can use an EMI Calculator for calculating the EMI of a home loan, car loan, personal loan, auto loan, education loan, or any other fully amortizing loan. The borrower needs the following information to calculate the EMI:

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

EMI Calculator Chart & Repayment Table

An EMI chart indicating details like Loan amount, Interest Rate, Loan Tenure, Total Monthly EMI amount, and the total number of EMIs, is also displayed for better understanding. The EMI schedule table shows the following details:

  • Monthly repayments for the entire loan duration
  • Principal amount for that month
  • Interest paid for that month
  • Total interest paid till that month
  • Balance amount

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

Benefits of using a Loan Calculator

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

Factors Affecting a Loan EMI

The main affecting factors for the loan 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. EMI is the amount payable every month to the bank 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 duration in months.

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

In the normal EMI schemes (also called EMI in arrears), a loan amount will be transferred to the loan borrower. Further, the EMI of a fixed amount will start from the end of the first month. On other hand, 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 advance EMI before the due date?

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

2 thoughts on “EMI Calculator”

  1. I took House Loan from State bank of India and tried to calculate the principal and interest payable for each instalment. I realised it is a tedious job to finish this. Of course, it is simple to calculate the EMI for shorter periods but takes lot of time for working out for longer periods. I searched for solution on the Web, I found your site and used the screen for calculation of EMI. I entered into the screen the required parameters viz., total amount of Loan, Rate of Interest and Number of Instalments. I was happy, with in seconds, I got the output showing each instalment wise, Principal and Interest payable with total interest payable and principal balance instantly for the all the instalments. I felt happy looking at the output. Thanks to emicalculator.org website making my work easier.
    Further, I found detailed explanation and information on EMI procedure, Types of EMIs and their calculation with formula made me so impressive. Really, this website updated my knowledge. Thank you once again.


Leave a Comment