India’s credit landscape is expanding at an impressive pace. As the 4th largest credit industry globally, it has been growing consistently at a CAGR of over 11% year on year. Interestingly, a significant chunk of this growth is driven by short-term credit products like personal loans and credit cards — together accounting for nearly 78% of all lending in the country. As borrowing increases, it’s more important than ever to understand repayment responsibilities—especially EMIs—for effective financial planning. This is where an EMI Calculator becomes invaluable. It helps borrowers estimate their monthly instalments based on loan amount, tenure, and interest rate. With several calculators available online, choosing a reliable one ensures accurate projections, helping users make smarter, well-informed loan decisions.
Read more
loading...
loading...
loading...
Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
An EMI stands for Equated Monthly Installment. It is a fixed amount of money that a borrower pays to a lender at a specific date each month to repay a loan over a set period.
Here's how EMI works:
Fixed Payment: The EMI amount remains the same throughout the loan tenure, making it easier for borrowers to budget their finances.
Principal and Interest: Each EMI payment consists of two components:
Principal: This is the original amount of money borrowed.
Interest: This is the cost charged by the lender for lending the money.
Loan Tenure: This is the pre-agreed period over which the loan will be repaid through EMIs. It can range from a few months to many years.
Reducing Balance: In the initial stages of the loan, a larger portion of the EMI goes towards paying the interest, and a smaller portion goes towards the principal. As time progresses and you make more payments, this ratio gradually shifts, with more of the EMI being applied to reduce the principal amount.
What is an EMI Calculator?
An EMI Calculator is a user-friendly online tool that helps you estimate the Equated Monthly Installment (EMI) for a loan. By inputting a few key details about the loan, the calculator quickly computes the fixed monthly amount you would need to pay to the lender until the loan is fully repaid.
Factors Affecting the Due Amount in EMI Calculator
Here are the key factors affecting the due amount (EMI):
Principal Loan Amount (P)
This is the initial amount of money borrowed.
A higher principal amount will directly result in a higher EMI. This is because there's a larger sum to repay, along with the accrued interest.
Interest Rate (R)
This is the cost charged by the lender for lending the money, usually expressed as an annual percentage.
A higher interest rate will lead to a higher EMI. More of each payment will go towards the interest component, especially in the initial stages of the loan.
The interest rate can be fixed or floating.
Fixed Interest Rate: The interest rate remains the same throughout the loan tenure, so the EMI will also generally remain constant.
Floating Interest Rate: The interest rate changes based on market conditions or the lender's base rate. If the interest rate increases, the EMI might increase (or the loan tenure might get extended, depending on the lender's policy). Conversely, if the interest rate decreases, the EMI might decrease (or the tenure might shorten).
Loan Tenure (N)
This is the duration agreed upon for repaying the loan, usually expressed in months.
A longer loan tenure will result in a lower EMI. Spreading the repayment over a longer period reduces the monthly burden. However, it also means you will pay more total interest over the life of the loan.
A shorter loan tenure will result in a higher EMI. You'll pay off the loan faster and pay less total interest, but the monthly payments will be larger.
How to Calculate EMI?
EMI can be calculated using the Mathematical Formula:
The EMI calculator works on the basis of the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]
Terms used in EMI calculator Formula
P
Principal loan amount (the original amount borrowed)
R
Monthly interest rate (Annual interest rate divided by 12 and then by 100)
N
Total number of monthly instalments (Loan tenure in years)
EMI calculation formula with example:
Suppose you take a loan of ₹10,00,000 at an annual interest rate of 12% for a tenure of 5 years (60 months).
Instant Results: Provides quick and accurate EMI figures.
Budgeting Aid: Helps manage loan affordability for budgeting.
Loan Comparison: Enables easy comparison of different loan offers.
Tenure Exploration: Shows how tenure affects EMI and total interest.
Informed Decisions: Supports making sound borrowing choices.
Convenient Access: Available online anytime, anywhere.
Free to Use: Offered without any cost.
Loan-Specific: Some calculators cater to specific loan types.
Types of EMI Calculators
To effectively plan your loan repayments, various types of EMI calculators are available, each modified to specific loan categories. These user-friendly tools help you estimate your EMIs instantly by simply entering the loan amount, interest rate, and loan tenure. Here are some common types:
Home Loan EMI Calculator
Home loans involve substantial principal amounts and long repayment periods. A Home Loan EMI Calculator is crucial for strategic financial planning. By inputting the loan amount, interest rate, and tenure, you can immediately calculate your monthly EMIs and assess affordability before committing to this significant investment.
Car Loan EMI Calculator
Purchasing a car often requires a significant financial commitment, and a Car Loan EMI Calculator helps you determine manageable monthly payments. By entering the loan amount, interest rate, and repayment period, you can calculate the precise EMI and ensure timely repayment to avoid potential asset loss.
Personal Loan EMI Calculator
Personal loans cater to diverse needs like medical emergencies, travel, or home renovations. While often unsecured with higher interest rates and shorter tenures, a Personal Loan EMI Calculator allows you to assess comfortable EMI amounts. Inputting the loan amount, interest rate, and tenure provides an instant calculation for informed borrowing.
Education Loan EMI Calculator
Financing education, whether domestic or international, can be a significant expense. A Child Education Plan loan EMI Calculator helps you understand the post-moratorium repayment burden. By entering the loan amount, interest rate, and tenure, you can calculate the EMI you'll need to repay after the initial grace period.
Loan against Property EMI Calculator
A Loan against Property is a secured loan availed by mortgaging an owned asset (residential, commercial, or land). A Loan against Property EMI Calculator assists in determining a repayable monthly installment without causing financial strain. Simply enter the loan amount, interest rate, and tenure to calculate your EMI.
Advantages of Using Policybazaar’s EMI Calculator
Below are the reasons why you should use Policybazaar’s EMI calculator:
User-Friendly Interface: Simple and intuitive design for easy input.
Quick & Instant Results: Get your EMI calculation in seconds.
Accurate Calculations: Provides precise EMI figures for better planning.
Transparent Breakdown: Often shows principal and interest components.
Accessible Anytime: Available online 24/7 for your convenience.
Free to Use: No charges for utilizing the calculator.
Conclusion
An EMI Calculator is your go-to financial tool for stress-free loan planning. By knowing your monthly instalments in advance, you can manage your budget better, avoid surprises, and stay in control of your finances. Use it before taking any loan to make informed and confident choices.
FAQs
What types of loans can I calculate using the EMI calculator?
This EMI calculator works for a wide range of loans, including personal, business, and car loans. Just input your loan amount, interest rate, and repayment tenure to get started.
When is my EMI due, and how do I make the payment?
The EMI due date is specified in your loan agreement and can also be found on your monthly loan statements. Most lenders accept payments through internet banking, mobile apps, debit/credit cards, or auto-debit instructions. Timely payments help keep your credit score healthy.
What are the consequences of missing an EMI payment?
Skipping an EMI can attract penalties and increase your overall loan burden. You may be charged late fees and additional interest, which can make future repayments more expensive.
What if the interest rate changes during my loan tenure?
If your loan has a floating interest rate, changes can affect your repayment terms. A rate reduction usually shortens your loan tenure, while a hike might increase your EMI or extend the duration. Your lender will inform you of how these changes apply to your specific loan.
Why should I use a loan EMI calculator?
An EMI calculator gives you a clear picture of your monthly repayments and the total cost of the loan. It’s a useful planning tool that helps you understand your financial commitment before applying for a loan.
What if I miss an EMI payment?
Missing an EMI can lead to late fees, a dip in your credit score, and even legal complications. It’s important to stay on top of your repayment schedule to avoid these issues.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Past 10 Years' annualised returns as on 01-04-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
Compare & Choose 30+ Plans and 150+ Fund options
