EMI Calculator

EMI Calculator

Calculate your Equated Monthly Installment (EMI) for any loan with detailed breakdown and visual analysis. The credit market in India is steadily on the rise, currently the 4th largest credit industry in the world, recording a CAGR of over 11% year on year.

Loan Details

₹
₹1,00,000₹1,00,00,000
%
1%20%
Years
1 Years30 Years

EMI Breakdown

Monthly EMI
₹4,339
Principal Amount
₹5,00,000
Total Interest
₹5,41,388
Total Amount Payable
₹10,41,388

Payment Breakdown

Principal48.0%
Interest52.0%

Understanding EMI in India's Credit Market

A vast majority of advances in India are short-term credits such as personal loans and credit cards. Combined, these two financial products account for 78% of all credit lending in India. Loan repayments include EMIs and borrowers should consider the EMI amount to accurately plan their current and future finances.

The credit market in India is steadily on the rise, currently the 4th largest credit industry in the world, recording a CAGR of over 11% year on year. A vast majority of these advances are short-term credits such as personal loans and credit cards.

There are several EMI calculators available online; one must choose an accurate EMI calculator and learn its usage to calculate the exact EMI amount they are liable to pay for a loan.

Factors Affecting Your Due Amount

Loan Tenure

A loan's tenure may get reduced or extended. Subsequently, there will be an increase or a decrease in the EMI amount as well. Thus, considering the term of a loan is also an important factor that may affect your due amount.

Interest Rate

The rate of interest is a vital factor that will help to assess the installment amount owed. You can compare the product and opt for one which has a lower rate of interest so that your overall repayment stays low.

Loan Amount

Choosing the loan amount is another significant factor for determining your EMI. Based on the loan amount you choose, your equated monthly installment will be calculated accordingly.

How Can an Online EMI Calculator Help You?

The number of credit accounts is growing at an even higher CAGR of 28% and has reached 107 million accounts at the end of FY18. Regardless of the type of loan you want to avail of, be it a secured or unsecured advance, it is paramount that you know how much monthly instalment you have to make before you avail it.

Note: Make sure that your debt-to-income ratio is below 50% to maximize your chances of loan approval.

Advantages of EMI calculators include:

  • It helps you get an accurate estimate of your EMI amount so that you can plan your finances accordingly
  • It helps you save valuable time. You don't have to do complex calculations manually, which can be quite time-consuming
  • It eliminates any chance of a miscalculation, providing you with an accurate estimate every time
  • It is highly specific for each type of loan. The EMI breakup of a home loan, for example, is different from that of a personal loan

Formula to determine EMI amount

There is a specific formula that is used to compute the EMI amount for a loan. The EMI calculation uses a standardized mathematical formula that ensures equal monthly payments throughout the loan tenure.

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
P = Principal loan amount
R = Monthly interest rate
N = Total number of months

Example Calculation

For example, a loan of ₹10,00,000 at 12% annual interest for 5 years:

The final EMI amount is calculated with the following formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

= [10,00,000 × 0.01 × (1+0.01)^60] / [(1+0.01)^60 - 1] = ₹22,244

Result: The monthly EMI for the loan is ₹22,244

This is the standardized formula used by any online loan calculator. Some variables may be added based on the type of loan.

Types of EMI Calculators

Home Loan EMI Calculator

Home loans usually have a huge loan principal amount and a long tenure. It requires strategic planning for its repayment. You can use the Home Loan EMI Calculator to calculate your EMI with user-friendly design that helps you calculate and assess your home loan EMIs immediately.

Car Loan EMI Calculator

Buying a car is one of the major investments one can make. You may require a car loan to fund this substantial investment. Often, a car loan's EMI is supposed to be repaid with due interest within a stipulated time to the lender.

Personal Loan EMI Calculator

Personal loans are mostly taken to serve multiple purposes like medical emergency, vacation, relocation, wedding, home renovation, etc. Since they are an unsecured loan, they have a relatively higher interest rate and a shorter tenure.

Education Loan EMI Calculator

Affording good education in recent times has been quite a task for parents as its cost has risen at a rapid pace. To finance this cost, an education loan is one of the best options a parent can opt for.

EMI Calculator FAQs

Get answers to commonly asked questions about EMI calculations and loan repayments.

An EMI (Equated Monthly Installment) calculator is a financial tool that helps you calculate the monthly payment amount for a loan. It considers the principal amount, interest rate, and loan tenure to determine your monthly payment obligation.
Our calculators provide highly accurate estimates based on standard financial formulas. However, actual loan terms may vary based on your credit score, lender policies, and market conditions. Always consult with financial institutions for final terms.
These calculators are designed to help you make informed financial decisions. Use them to compare different loan options, plan your investments, and understand the long-term impact of your financial choices.
Your loan EMI is primarily affected by three factors: the principal amount (loan amount), the interest rate, and the loan tenure. A higher principal or interest rate increases EMI, while a longer tenure reduces it but increases total interest paid.
Shorter tenures mean higher EMIs but lower total interest paid. Longer tenures reduce EMI burden but increase total cost. Choose based on your monthly budget and long-term financial goals.
Fixed rates remain constant throughout the loan tenure, providing payment predictability. Floating rates change with market conditions and can result in varying EMIs over time.
Prepayment reduces your outstanding principal, which can significantly reduce total interest paid and loan tenure. Most lenders allow prepayment with minimal or no charges after a certain period.
You can use the EMI calculator for various types of loans including home loans, car loans, personal loans, education loans, business loans, and credit card loans. The calculator works for any loan that follows the standard EMI structure with principal, interest rate, and tenure.
The debt-to-income (DTI) ratio is crucial for loan approval. It measures your monthly debt payments as a percentage of your monthly income. Most lenders prefer a DTI ratio below 40-50%. A higher DTI ratio indicates higher financial risk and may result in loan rejection, higher interest rates, or reduced loan amounts.
An EMI (Equated Monthly Installment) consists of two main components: Principal amount (part of the original loan amount being repaid) and Interest amount (cost of borrowing). The ratio between these components changes over time - initially, more goes toward interest, and as the loan progresses, more goes toward principal repayment.
Missing EMI payments can have serious consequences including late payment charges, penalty interest rates, negative impact on your credit score, loan account becoming NPA (Non-Performing Asset), potential legal action, and in severe cases, asset seizure (for secured loans). It's important to communicate with your lender if you anticipate payment difficulties.