EMI Calculator

Loan Type

₹100 ₹1000000
%
5% 30%
Month
1 Month 96 Month
Your EMI is ₹ 0
Total Interest ₹ 0

Total Amount Payable ₹ 0

Your EMI is

₹ 0

Total Interest

₹ 0

Total Amount
Payable

₹ 0

₹100 ₹1000000
%
5% 30%
Month
1 Month 96 Month
Your EMI is ₹ 0
Total Interest ₹ 0

Total Amount Payable ₹ 0

Your EMI is

₹ 0

Total Interest

₹ 0

Total Amount
Payable

₹ 0

₹100 ₹1000000
%
5% 30%
Years
2 Years 30 Years
Your EMI is ₹ 0
Total Interest ₹ 0

Total Amount Payable ₹ 0

Your EMI is

₹ 0

Total Interest

₹ 0

Total Amount
Payable

₹ 0

What is EMI (Equated Monthly Instalment)?

When you avail of a loan, the lender levies interest at a specific rate on the principal amount borrowed. Thereafter, you need to repay the loan over a predetermined tenure through EMIs or equated monthly instalments. These are fixed payments that you, the borrower, make to the lender on a specified date each month.

 

The EMI amount typically remains constant throughout the loan tenure. Also, each EMI generally consists of both the principal component as well as the EMI component, although the proportion may vary based on the loan’s terms and conditions. To find out what the EMI for any loan may be, you can make use of an equated monthly instalment calculator online. 

What is an EMI Calculator?

A loan EMI calculator is a free online financial planning tool that helps borrowers find the equated monthly instalment they will have to pay if they avail of a loan. If you are planning to borrow money, whether through a housing loan, education loan, vehicle loan or even a personal loan, an EMI calculator can help you get a clear picture of the amount you will have to pay each month. 

 

Since this tool only requires a few basic inputs, even beginners or first-time borrowers will find it easy to use. You also do not have to pay any fees to use the easy EMI calculator. This means you can change the loan parameters and check how the EMIs change across different repayment tenures and interest rates. 

How Does a Loan EMI Calculator Work?

A loan EMI calculator uses a specific mathematical formula to determine the monthly instalment amount that you need to pay for a loan. To find this information, you need to feed in some key details — like the amount borrowed, the rate of interest per annum and the repayment tenure of the loan (typically in months). The EMI calculator then converts the annual interest rate into a monthly rate because EMIs are paid each month. Then, using the EMI calculation formula, this online tool finds and displays the monthly instalment you will have to pay for the loan. This output helps you understand your monthly commitment for the loan. By knowing the exact EMI you will have to pay, you can chart out a financial plan to repay the loan easily.

What are the Benefits of Using a Loan EMI Calculator?

A loan instalment calculator is useful to borrowers in many ways. If you are planning to avail of a loan, here are the top reasons to use an EMI calculator to plan your borrowing smartly.

 

  • Quick Calculations: An EMI calculator gives you instant results. This saves you a considerable amount of time compared to manual computations. You can quickly assess how affordable a loan is and plan your next move accordingly.
  • Accuracy and Convenience: Loan EMI calculators are better at delivering precise calculations and eliminating the risk present in manual computations. Furthermore, monthly EMI calculators are also easily accessible online and convenient to use at any time.
  • Comparison of Loan Offers: Online EMI calculators also make it easier to compare different loan offers. All you need to do is submit the details of the loans. The online tool will then display the EMIs for each offer, and you can choose the most cost-effective option.
  • Informed Decisions: You can use a loan EMI calculator to understand the impact of different interest rates and loan tenures on your EMI payments. This helps you make smarter decisions about borrowing money as you get to identify the most favourable terms easily. 

What is the EMI Calculator Formula?

The EMI calculation formula used by a loan EMI calculator is fairly complicated, as outlined below:

 

EMI = [P x r x (1 + r)n] ÷ (1 + r)n — 1

 

Where:

  • P represents the principal loan amount
  • r represents the monthly interest rate
  • n represents the loan tenure in months

 

As you can see, the formula is difficult to use manually. If you attempt to use the EMI calculator formula to work out the EMIs yourself, it may be time-consuming and prone to human error. A loan EMI calculator offers a more efficient alternative as it computes the instalment amount almost instantly, without any error. 

How to Use the Bajaj Broking Online EMI Calculator?

To use the online EMI calculator on the Bajaj Broking platform, all you need to do is follow the steps outlined below:

 

  • Step 1: Enter the loan amount in rupees.
  • Step 2: Enter the rate of interest on the loan per annum.
  • Step 3: Enter the tenure of the loan in months.
  • Step 4: Submit these details by clicking the CTA button below the input fields.

 

The loan EMI calculator then uses this data to calculate the monthly EMIs, the total interest you will have to pay and the total amount payable. 

What are the Different Types of EMI Calculators?

Depending on the use case, there are different types of loan EMI calculators available online. The top variants of this online tool include the following:

 

  • Basic EMI Calculator: This is a basic calculator that computes the EMIs for loans with fixed interest rates and loan tenures.
  • Advanced EMI Calculator: This tool factors in advanced parameters like changing interest rates, flexible loan tenures and prepayments.
  • Home Loan EMI Calculator: This type of EMI calculator is specifically designed to determine the EMIs for home loans. It factors in the loan amount, interest rate and tenure.
  • Personal Loan EMI Calculator: Tailored for personal loans, this calculator also accounts for the fundamental factors used in a basic EMI calculator.
  • Education Loan EMI Calculator: You can use this tool to compute the EMIs for an education loan. It considers factors like the course duration, moratorium period and loan tenure.
  • Vehicle Loan EMI Calculator: With this loan EMI calculator, you can use factors like the loan amount, interest rate and tenure to find car or bike loan EMIs.
  • Loan EMI Comparison Calculator: This EMI calculator compares EMIs, interest payments and total repayment amounts for different loan options, so you can make informed choices. 
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Frequently Asked Questions

What are the tax implications of paying EMIs on loans?

Answer Field

Yes, paying EMIs on certain borrowings like home loans and education loans offers tax benefits under the old tax regime. The principal component in home loan EMIs is tax deductible u/s 80C while the interest component is tax deductible u/s 24. Furthermore, the interest component of education loan EMIs is also tax deductible u/s 80E. 

What are the hidden charges associated with loan EMIs?

Answer Field

Some other charges associated with loan EMIs include processing fees, late payment fees, prepayment charges and taxes. However, most trustworthy lenders explicitly mention these charges. 

What are the consequences of missing or delaying an EMI payment?

Answer Field

If you delay or miss an EMI payment, the lender may levy late fees and penalties. Additionally, your credit score may also suffer. 

How does the interest rate structure affect my EMI payments?

Answer Field

The type of interest rate directly affects your EMIs. A higher interest rate leads to higher EMI payments, while lower rates may reduce your EMIs. Additionally, the nature of the interest rates, whether fixed or floating, also influences the EMI amount. 

Can the EMI amount change during the loan tenure?

Answer Field

That depends on the terms and conditions of the loan. Typically, if a loan has a floating interest rate or comes with a step-down EMI plan, the amount payable each month may change accordingly. 

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