EMI Calculator - Calculate Your Loan Repayments | Motilal Oswal

# EMI Calculator

%
Yr

#### Monthly EMI

0

• Principal amount 100.00%
1,000
• Total interest 0.00%
0
• Total amount
0

+91 |

## Calculate your liabilities with the EMI Calculator.

### An EMI lets you be worry-free while you make repayments flexibly, suited to your unique financial requirements

Use the EMI calculator to know the best way to repay your loan without any hassle, choosing your tenure and interest rate with the loan amount you need

### 1. What is an EMI ? How is it calculated?

• EMI stands for “equated monthly instalment”. When you take a loan, your lender lends you a principal amount. You have to repay this amount to the lender on a monthly basis along with interest. The repayment you make every month towards your loan debt is called an EMI, or an equated monthly instalment. It is calculated by the formula below:
• EMI = (p x r x (1 + r)^n/[(1 + r) ^(n - 1)]
• In the above formula,
• p stands for the amount of the principal
• r stands for the interest rate
• n stands for the tenure of the loan

### 2. Why do we calculate the EMI?

The calculation of the EMI is essential for sound financial planning. It helps you to gauge what EMI you will have to pay for any loan that you take, along with the interest component. As a result, you can establish a budget to pay off your loan before you even opt for a loan. Good financial planning is a must so you are sure you have the ability to repay your loan and avoid a debt trap.

### 3. What are the benefits of using an EMI Calculator?

• The following are the benefits of using an EMI calculator:
• The online EMI calculator is a user-friendly tool, free of cost. You can repeatedly use it with ease
• It is a quick way to conduct calculations and gives you a precise result of the EMI to be paid on any loan.
• It aids you in financial planning and establishing contingencies to pay off your loan fully and in time.
• It helps you to choose your loan according to your unique financial position and ability.

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### Accurate calculators that you can use free of charge

Calculate your EMI free of cost

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Use the online calculator which is easily accessible and user-friendly

### Get the affordability you need with calculator use

Quickly calculate your EMI and choose the loan you want to afford your product

## EMI Calculator FAQs

An EMI calculator is an online tool which is available and easily accessible on most portals of financial institutions, banks and brokerages. It helps you to quickly and easily compute the EMI you will have to pay on a specific loan amount with interest according to the tenure of the loan. In this manner, you can compare loans from different lenders (as interest rates vary from lender to lender) and choose the loan that is best suited to your requirements.

### 2. What sort of loans can I use the EMI calculator for?

Anyone is able to use an EMI calculator for the purpose of calculating your monthly equated instalments for any kind of loans, be it personal loans, car loans, business loans, home loans or any other. The information entered into the EMI calculator typically consists of the rate of interest on the loan, the amount of loan and the tenure of loan.

### 3. What does an EMI consist of?

An EMI is an “equated monthly instalment” and it reflects a portion of the principal sum of the loan taken with interest added. This amount is paid to your lender on a monthly basis towards the repayment of the loan you have taken. Alternatively, it is possible to repay your loan debt in a lump sum at a single time during the tenure of your loan. You can also repay a larger portion, but not the full amount, as payment towards your repayment of the loan. This way, your EMI is reduced for the remainder of your loan tenure.

### 4. What happens if I fail to pay my EMIs?

In the event you do not pay your equated monthly instalment or EMI at any time during the loan tenure, financial organisations and banks levy charges and penalties that could amount to heavy sums. You may end up paying more towards your loan.

### 5. How does the debt-to-income ratio affect my chances of availing of a loan?

In case you wish to be approved for a loan your debt-to-income ratio should not exceed 50%. In the event, the ratio is above 50%, the lender may not be convinced of your potential to make loan repayments.

### 6. What are the types of EMI calculators?

EMI stands for monthly equated instalment, and any EMI calculator helps you to estimate the EMIs you will have to pay after you have taken out a loan. When you take a loan for the purchase of any commodity, you have to repay the loan through regular monthly payments till you reach the end of your loan tenure, when you have completed all the EMIs. Different kinds of EMI calculators help you to compute the EMIs you will have to pay according to certain loan amounts you take and the tenure of your loan. You should also note that loan repayments include interest amounts and this is also considered by the EMI calculators you use. Here are the types of EMI calculators you can use, depending on the kind of loans you take:

EMI Calculator for a Home Loan - A home loan EMI calculator lets you calculate your EMIs on a home loan amount (the principal) which is usually a large sum for a home loan. Typically loans are taken for a long tenure. You can conveniently compute your EMIs by entering the tenure, the rate of interest and the amount of the loan

EMI Calculator for a Car Loan - The car loan calculator tells you what EMIs you will have to pay for a car loan. All you should do is to enter your loan amount, your loan term and the rate of interest.

EMI Calculator for a Personal Loan - A personal loan is a loan you take for any personal funding reason. The personal loan EMI calculator helps you to know what EMIs you will have to pay for a particular loan amount that you opt for with a specific interest rate and loan duration

EMI Calculator for an Educational Loan - Educational loans help students realise the dreams of receiving a good education. With an EMI calculator, it is effortless to calculate the EMIs you will have to pay for a loan amount taken for a certain tenure with a particular interest rate attached.