Loan Amount

1 lac

2 Cr



6 Months

36 Months


Interest Rate




Principal Amount


Interest Amount


Monthly EMI


Total Amount Payable:


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What is an EMI?

A loan is a financial agreement between a lender and a borrower where the lender lends a sum of money for a specified period of time which needs to be paid back by the borrower along with the interest amount (rate of interest is fixed in terms and conditions of the contract). This borrowed amount when returned within the stipulated period of time in the form of monthly pay-outs to balance out the total budget of the borrowings is called an EMI – Equated Monthly Instalment. Loans are taken for various purposes – personal or professional use and need to be returned at some point in time with the advantage of extra money in the form of interest which is owned and taken by the lender.

Features and Benefits of EMIs:

  1. EMIs reduce the financial pressure of the borrower and helps him return the loan in easy instalments.
  2. It gives the advantage to a broader and weaker section of the society to fulfil their dreams, necessities, and comforts by taking small loans which they don’t have to pay in lump sum, instead easy EMIs come as a rescue to enable them to make these expenses.
  3. EMI payments help the borrower to pay the loan amount and accrued interest on a monthly basis.
  4. Front Loading EMIs are productive where the initial years of EMI payment is towards the interest and the latter years constitute the repayment of the Principal amount.
  5. EMIs are mostly fixed. But there are cases when the EMI amount can vary in case of floating interest rates and pre-payments.
  6. Manual calculation of EMIs could be a tedious task, so it is better to opt for Online EMI Calculators which give the exact EMI to be paid on various loans in a few seconds.

What is an EMI Loan Calculator?

The process which defines the conversion of the loan amount plus interest into easy monthly instalments which can be conveniently paid by the borrower to the lender is called an EMI Loan Calculator.

Features of an EMI Calculator

  1. The borrower needs to input details like the principal amount borrowed, tenure of using the money, and interest rate in the EMI calculator which instantly displays a result which can be paid per month which is called the EMI.
  2. Calculating EMI using an online EMI calculator is convenient and easy and one can assess the monthly EMI paid towards the loan in seconds.
  3. Online loan EMI calculators are available 24 x 7 absolutely free of cost.
  4. It gives the benefit of comparing various types of loans provided by various lenders online, by just comparing and analysing the EMI which fits into one’s budget as shown by the EMI calculator.
  5. The number of EMIs as depicted by the EMI Calculator is equal to the number of months which will take in the entire loan repayment tenure.

Benefits of an EMI Calculator

  1. The accessibility of the EMI calculator is anytime, anywhere and 24 x 7.
  2. Taking the built-in formula into consideration, and all the key parameters of the loan, it gives out accurate results without any discrepancy or manual feeding
  3. Saves a lot of time and inconvenience of doing manual and complex mathematical calculations
  4. Assists the planning and implementation of the financial process.
  5. This can be used for all kinds of loans giving a comparison of various types, categories, tenures, vendors, and kinds.
  6. This tool helps in identifying the loan eligibility of an individual and helps him to reach at the desired EMI amount customising the calculated as per his individual conditions
  7. According to the eligibility criterion and individual requirements, the borrower can check out various vendors and options that are available for the same amount which gives him a leverage to choose the best from the given options
  8. This also helps in applying for an online loan immediately after the calculation process.

How are EMIs Calculated?

The main parameters required to calculate an EMI amount are the amount taken as loan, the rate of interest, and the overall tenure for which the loan is used. There are three ways to calculate EMIs:

Mathematical Formula to calculate EMIs

The main formula used – EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)],

Variables stand for:

  • EMI = Monthly Instalment to be paid by the borrower
  • P = Principal or Borrowed amount
  • R = Rate of interest (monthly)
  • N = Tenure of repayment of the loan

The same formula is applied by the online EMI Calculator in seconds.

Online EMI Calculators

With an online EMI calculator, the borrower can easily customise his loan repayment requirement, duration of repayment, and monthly budget and accordingly pay a monthly depending on his income and maintain financial stability. Using the same standard formula, it is built in to provide many benefits to consumers like timesaving, convenience, comparison of different loan types, tenures, vendors, and much more: This helps in calculating EMIs for various kinds of Loans like:

  1. Car loan
  2. Education loan
  3. Home loan
  4. LAP
  5. Personal loan
  6. Gold loan
  7. Business Loan
Other Relevant Calculators:

Types of EMI Calculators

Depending on the type and category of loan, one has applied for, EMI Calculator can be of 5 different types:

1. Home Loan EMI Calculator:

Home loans are based on the cost of property and the repayment capacity of the borrower. These loans are long term loans with a high principal amount which can be repaid up to 30 years. The personal requirements and eligibility criteria are important to heed to before deciding on the home loan. All one has to do is to enter the loan amount, interest rate, and the tenure in the EMI Calculator to ascertain the home loan EMI.

2. Personal Loan EMI Calculator:

These are all purpose loans which can be taken for personal and professional reasons like a wedding, shopping, construction, renovation, buying a new product, etc. This is an unsecured loan, so it comes with a high rate of interest and a shorter tenure to pay the amount. One needs to enter all the relevant parameters and use the EMI calculator to find the best vendor who will give a personal loan at the most affordable EMI.

3. Car Loan EMI Calculator:

An individual can buy his dream car – new or second hand through this loan. While using the EMI Calculator one must ensure that the amount will be low or high in accordance with the kind of vehicle chosen, the maximum tenure can be 5 years with a condition that if the loan is not repaid on time, the lender has the leverage to take away the vehicle and auction it to recover the balance. So, using the EMI Calculator, one must calculate the amount to be paid feasibly to avoid issues.

4. Education Loan EMI Calculator:

The cost of education is climbing. It becomes imperative to take an education loan to fulfil the academic demands of children. This loan is taken before the admission of the child in the required university after which a moratorium of minimum 6 months is provided. There is no need to start with the repayment immediately after the loan is taken, as the choice is given to start with EMIs after completion of the course or after the child gets a job. If the repayment immediately starts even during the moratorium period it comes with benefits.

5. LAP – Loan against Property EMI Calculator:

There could be a minimum and maximum restriction according to these kinds of loans but the Property against which the loan has been availed is treated as a collateral. In case the borrower is unable to pay his EMIs and dues on time, the lender has the right to seize the collateral pledged by the borrower and can compensate the pending amount.

Process of using an Online EMI Calculator

Step.1 – Visit to the Portal and select the EMI calculator page under the calculator tab

Step.2 – Select the type of loan that the individual is looking for, example home loan, personal loan, car loan, etc.

Step.3 – Select the appropriate EMI calculator tab

Step.4 – Now the individual needs to enter the mandatory parameters – amount of loan, principal, interest rate, and tenure of the loan.

Step.5 – As soon as the three variables are entered, the EMI Calculator displays the payable EMI amount

Step.6 – Now the applicant can try the same using different combinations to reach at the best-fit EMI

Step.7 – Post that, the applicant can also check his loan eligibility and get the best loan quotes depending on his eligibility and financial requirements and he can also apply for an online loan.

EMI Calculator FAQs:

1. Where can I get an EMI calculator?

An EMI calculator can be found online on the organization's web page from who you wish to procure a loan. All lenders have an EMI calculator, which you can use to estimate the relevance and applicability of a loan.

2. What happens if I miss an EMI payment?

Upon missing an EMI payment, you will either have to pay a penalty fine or pay extra on the next EMI payment alongside the missed EMI. This varies from lender to lender. Overall, a penalty of some sort will be levied.

3. Which loan’s EMI can I calculate using an EMI calculator?

An EMI calculator can be used to calculate the instalments of any loan. As there are different types of loans, the loan providers may have different calculators that are predominantly for that type of loan. But the core principle remains the same. So, any online EMI calculator cam essentially is used for any loan.

4. Is it better to have a pre-closure on EMI payments?

Reclosing the loan before the tenure ends leads to having a bad credit score. Making timely EMI payments helps keep a healthy credit score for future financial ventures. Alternatively, you can choose to prepay a part of the loan to reduce the total tenure. It should be noted that banks often charge a fee for prepayment on loans.

5. What is a Loan Amortization Schedule?

A loan amortization schedule is a detailed version of the process of repayment of the loan. The features of this schedule are: • It categorically splits the EMI into two parts covering the interest paid towards the loan and the principal amount. The former EMIs constitute the interest whereas the latter EMIs cover the repayment of the principal amount of the loan • The amortization schedule constitutes complex and difficult mathematical calculations and can be obtained by the lender. • This schedule gives out relevant and useful information which can used for prepayment or refinancing of the loan, interest details which can be used for avail tax exemptions ata a later stage and much more.

6. How beneficial is it to pre close a loan?

This may affect the CIBIL score and credit rating of an individual. It may also invite an extra charge as a penalty for pre closure. The better option is to prepay a part of the loan i.e. the interest part and pay the principal amount is pre defied EMIs than to pre pay the whole amount of the loan.

7. Is there more accuracy in calculating EMI amounts using online EMI Calculators than the Excel Spreadsheet?

Since both the methods use the same formula, the accuracy is more or less the same, but the online EMI Calculator is much more convenient and feasible for an individual to use and it helps in comparing various loan options in just a few seconds.

8. Is the amount of EMI calculated using the online EMI Calculator the same as calculated by a bank or a finance company?

Depending on the changes in variables like the loan amount, tenure and rate of interest which caries from institute to institute, there could be slight changes in the calculation of EMI of a bank as compared to an online EMI calculator.

9. What is CIBIL and how does it affect the online loan application?

CIBIL means Credit Information Bureau India Limited which acts as a database to the credit history of each individual. Even after the EMI online calculator is used to identify the different EMIs of different loans but the loan acceptability and application will not be processed if the CIBIl score is low for any individual.

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