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EMI Calculator

Loan Amount (₹)
Rate of Interest (p.a.)
Loan Tenure (years)

Monthly EMI

₹ 15,211

Total Interest

₹ 47,595

Principal amount

₹ 5,00,000

Total amount

₹ 5,47,595

India's credit market has steadily expanded, eventually acquiring the 4th position in the industry. As of today, it showcases an impressive compound annual growth rate (CAGR) of 11 percent, year-on-year. While India's credit industry comprises several products, it's majorly dominated by short-term credit lines such as personal loans and credit cards.

In fact, both personal loans and credit cards account for 78% of all credit lending in the country.

Speaking of personal loans, there is an increasing preference for equated monthly instalments (EMIs). And with this preference, comes a need for borrowers to consider their EMI amount carefully to plan their monthly and future expenses.

Several EMI calculators are available online, free-of-cost. However, the key is to choose an accurate EMI calculator and understand its functioning to calculate the instalment amount which they are liable to pay.

Factors Affecting Your Due Amount

When planning for a personal loan, there are some important factors that you need to consider. However, your EMI is dependent on two primary aspects - financial capacity (or monthly income) and repayment capacity (can you afford to pay the amount each month).

To make things simpler, following are some factors to consider-

Tenure of loan

A loan's tenure is flexible enough to get extended or reduced. This will invariably reflect in your EMI amount i.e., decrease or increase, respectively. So, considering the tenure of a loan is also important to understand the overall loan amount.

Rate of interest

The rate of interest is another vital factor that will help evaluate the installment amount owed. Ideally, by comparing two or more EMI options, you can opt for the scheme with a lower rate of interest along with a reasonable tenure. So that your overall repayment amount remains low.

Amount of loan

Choosing the loan amount is also a significant factor for determining your EMI. Why? Because your EMI will be calculated based on the total loan amount that you decide to take.

Calculation of Floating Rate EMI

To prudently calculate floating/variable rate EMIs, we recommend a dual-scenario approach: the Optimistic (Deflationary) and the Pessimistic (Inflationary) scenarios. The loan amount and tenure are aspects you determine, signifying your control over how much to borrow and the duration of repayment. However, the interest rate is influenced by banks and HFCs, rooted in guidelines from the RBI.

To make informed decisions on EMIs, loan tenure, and borrowing limits, consider these scenarios:

Optimistic (Deflationary) scenario:

Imagine a decrease in interest rates by 1% - 3% from the current rate. Evaluating this scenario allows you to forecast potential EMI reductions or even opt for a shorter loan tenure. For instance, when securing a home loan for an investment property, this scenario provides insights into comparative investment avenues.

Pessimistic (Inflationary) scenario:

Conversely, envision an interest rate surge of 1% - 3%. Assess if the heightened EMI remains feasible for you. Even a mere 2% interest hike could substantially amplify your monthly commitments for the loan's duration.

Such evaluations are essential in pre-empting potential financial scenarios. Committing to a loan is a long-term fiscal responsibility. Hence, while it's beneficial to remain optimistic, it's equally vital to be prepared for unforeseen challenges. In essence, hope for the best but brace for every possibility.

How can an online EMI calculator help you?

The number of credit accounts in the country is growing rapidly, with an expected CAGR of 18.7 percent between 2022-26. In fact, as many as 73 million credit cards were issued during FY 2022 alone.

Clearly, credit usage is expanding in India and so is the preference for EMI-based loan schemes.

Irrespective of the type of loan, secured or unsecured advance, it is important for your to calculate the EMI amount beforehand. So that you are prepared for what you're getting into. That is where an EMI calculator in India enters the picture.

  • An online EMI calculator seeks to provide an accurate estimate of your EMI amount. However, it is crucial to ensure that your debt-to-income ratio is below 50% to heighten your chances of loan approval.
  • An EMI calculator helps you save valuable time. Rather than manually calculating the instalment amount using complex formulae, you can use the online calculator for instant calculation.
  • It reduces any chance of a miscalculation, providing you an accurate estimate every single time.
  • It is highly specific for each type of loan including personal, car, home, etc. Why do you need separate calculators? Because the EMI breakup of a home loan is slightly different from that of a personal loan or a vehicle loan.

The formula to determine loan EMI amount

EMI calculator uses a specific formula to calculate EMI amount. The formula is:

EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)], where –

P = principal amount
R = rate of interest
N = loan tenure

This is the standardised formula used by any online EMI calculator. Bear in mind that some variables may change, based on the type of loan availed.

Types Of EMI Calculator

As mentioned before, India's credit industry offers a wide variety of loans, based on types, amount, tenure, etc. And accordingly, numerous types of EMI Calculators also exist online that you can use for determining your equated monthly installments.

The different EMI calculators include:

Home Loan EMI Calculator

Home loans tend to have the largest/highest principal loan amount and invariably, a longer tenure. Given the huge amount to be paid, home loan requires strategic planning for its repayment. But worry not, for you can use the home loan EMI calculator to calculate your EMI.

It is a user-friendly, free-of-cost and instant-results calculator for determining your home loan EMIs immediately. All you need to do is enter all the variables including loan amount, tenure chosen and the prevailing rate of interest. Home loan EMI would be calculated instantly.

Car Loan EMI Calculator

Apart from real estate, buying a car is another major investment one can make. And so, you may require a car loan to fund this considerably large amount. Often, a car loan's EMI has to be repaid with due interest within a stipulated time, usually within 7-10 years.

Failure to do so and your car can be taken away and put up for auction to recover the remaining amount. To avoid this unfortunate circumstance, you can use a car loan EMI calculator. So that you know the monetary expectations even before signing-up for the loan. The process of using the EMI calculator remains the same as home loan - enter all the variables and submit to get instant value.

Personal Loan EMI Calculator

Personal loans are mostly meant for funding a medical emergency, vacation, relocation, wedding, home renovation, etc. These are primarily, unsecured loans and hence, have a relatively higher interest rate along with a shorter tenure. You can use the Personal Loan EMI Calculator of StockGro to assess how high the personal loan EMI value can go.

Education Loan EMI Calculator

In recent years, affording good-quality education has become an expensive affair for parents, particularly with the heightening cost-of-living. To fund this education, an education loan becomes a good option for parents. Such loans are available for education within India or overseas. By entering the loan amount, rate of interest, and loan tenure in the Education Loan EMI Calculator, you can calculate EMI value to be repaid.

Loan against Property EMI Calculator

A loan against property is a specific type of secured loan that you can avail while keeping your property as the collateral. This property can be residential, commercial, or land, as long as it can be mortgaged with the lender against the loan. For calculating the loan against property EMI amount, a specialised calculator is easily available online.

EMI Calculator FAQs

How do I calculate my EMI?

To calculate your EMI, you can use the EMI calculator formula - P x R x (1+R)^N / [(1+R)^N-1] – where, “P” is the principal loan amount, “N” in tenure in months, and “R” is the current interest rate. You can also opt for the EMI calculator present above for instant results.

What is the 40% EMI rule?

The 40% EMI rule states that the total equated monthly instalments (EMIs) that you pay for all your loans should not exceed 40% of your income. So, if your monthly income is Rs.1 lakh, your total EMIs should not be more than Rs.40,000.

How much EMI can I pay from my salary?

Ideally, the amount of EMI that you pay should not exceed 40% of your monthly income. However, practically speaking, the EMI can be extended to 50-60% of your salary.

What is the formula for calculating EMI?

The EMI calculator formula is P x R x (1+R)^N / [(1+R)^N-1] – where, “P” is the principal loan amount, “N” in tenure in months, and “R” is the current interest rate

What is the EMI for 10 lakhs car loan?

The EMI for 10 lakhs on your car loan can range from Rs.20,000 to Rs.1 lakh, depending on the tenure and current rate of interest. To know exact value, you can use our car loan EMI calculator.

Which finance is best for car loan?

Usually, an upfront lumpsum amount is the best for a car. But if you decide to opt for a car loan, choose the one with the lowest interest rate on EMI for a reasonable tenure. Use a car loan EMI calculator beforehand to make the best choice.

How to calculate personal loan EMIs?

Use the direct formula EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] to calculate the personal loan EMI. Here, P = principle loan amount, N = tenure in months, and R = current interest rate.

How does a personal loan EMI calculator work?

The personal loan EMI calculator takes three values into account - principle loan amount, tenure of loan and the prevailing interest rate. Using the EMI formula, it automatically calculates your EMI amount. If you change any of the values, the EMI also changes accordingly.

What are the benefits of using an EMI Calculator for a home loan?

The home loan EMI calculator is a free-of-cost online tool that can calculate approx. value of your EMI amount. With just a few inputs, your get the value instantly. The values are accurate enough to help you gauge the monthly EMI estimates.

How much home loan can I get on a salary of 40000?

A typical personal loan is granted for a tenure of 1-5 years. And the EMI amount would be 50% of your monthly salary i.e., Rs.20,000. Thus, you will get a personal loan ranging between Rs.2-10 lakhs.

How much personal loan can I get if my salary is 40000?

A typical personal loan is granted for a tenure of 1-5 years. And the EMI amount would be 50% of your monthly salary i.e., Rs.20,000. Thus, you will get a personal loan ranging between Rs.2-10 lakhs.

Can I get a 100 percent home loan?

In a 100 percent home loan, there is no down payment. And such loans are rare, if not entirely non-existent. While you may not get a 100 percent home loan, it can be stretched to 80-90 percent, depending on tenure of EMI.

Can I get a 90 percent home loan?

Yes. According to guidelines issued by the Reserve Bank of India (RBI), you can get up to 90 percent home loan on a property value of less than Rs.30 lakh. The remaining 10 percent down payment has to be paid at the start of the loan tenure.

How much loan can I get on 1 lakh salary?

On Rs.1 lakh salary, you can get a personal loan of up to Rs.50 lakhs, for a maximum tenure of 5 years. The lowest EMI starts from Rs.2,124 per lakh, for a period of 5 years. This value is subject to changes in tenure and interest rate. Use an EMI calculator to know the exact instalment amount.

How is EMI calculated in bikes?

The EMI amount for two-wheeler is calculated using the same underlying formula - P x R x [(1 + R) N / ((1 + R) N – 1]. To get instant instalment amount, use the vehicle loan EMI calculator.

What is the minimum EMI for bike loan?

Usually, bike loan is granted for a maximum of 7 years, at an interest rate of 8 percent or more. Thus, if the bike costs at least Rs.1 lakh, the minimum EMI for bike loan can be Rs.1500-1600, per month.

How much EMI is safe?

As per the 40 percent EMI rule, total EMIs not exceeding 40 percent of your monthly income is considered safe.
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