EMI Calculator

EMI Calculator

Bills, bills, and bills; they’re here, there, and everywhere. These days we cannot even think how relentlessly the EMIs or bills come in our way demanding our unmanaged cash every single month. All our paychecks vanished in moments just for uncalculated EMIs.

EMI stands for Equated Monthly Installments, where you get three different financial terms. It’s not that tough btw as they are just the installments you can create for making the gigantic payments look more affordable and simplistic.

Every month, it just waves its magic wand, and shows you the regeneration of interests and newer remaining principal amount. Believe me or not, Calculators do play the most important role, where most of us are unknown about the importance of EMI Calculators.

They can absolutely simplify your Financial Planning in many ways, and today we’ll recognize all of them using the below knowledgeable article. If you also want to reveal the venture behind curtains, go through the complete article, and start using the EMI Calculator.

EMI Calculator

What is an EMI Calculator?

There is no financial alchemy that cannot be solved with structured math, as it’s always been brother to the economy. But mostly we see the situation without the math calculations, and behind you’ll see a formulae to calculate the EMIs as shown below –

EMI = {P * R * (1 + R) ^ (N-1)}, where

P is the Principal Amount which you converted into installments,

R is the annual rate of interest liable on your installments,

N is the remaining loan tenure period

Once you know all these things, what you actually know; most of the problems are already resolved. Now if you don’t want to go with the math side by yourself, an EMI Calculator is the princely concept to help you make sense of this mathematical maze.

This calculator requires all the three above P, R, and N, Principal Amount, Rate of Interest, and the tenure period respectively. Once you have these three data points, you can feed them on the above calculator, and click the instant Calculate button. The power is now in your hands to change the mathematical maze into a magic wand.

Types of EMI Calculators

Three types of details, and you’re set with the complete amortization data about remaining EMIs you got for better financial planning. But EMI Calculators also have a few different types, for we can see different kinds of EMIs, likely Car Loan, Home Loan, Personal Loan, and Education Loan. There is no loan you can’t simplify with EMI Calculator, for having below unique types – 

Home Loan EMI Calculator

Although, the data you have to feed in different types of Calculator would be the three same components, but amortization becomes simple. As with the Home Loan EMI Calculator, you can dig up the monthly payments for your home while being aware of the changing interest rates.

Personal Loan EMI Calculator

When you need some kind of small or big amount for personal use, you can take the Personal loans with ease. These loans have a small span of time, and you can have a look at the complete amortization of these loans through the Personal Loan EMI Calculator with interests.

Car Loan EMI Calculator

The unique thing with the assistive Car Loan EMI Calculator is that you can also feed the down payment that you gave in the first place for your car. So there would be four different components asked by the calculator, Down Payment, Principal Amount, Tenure period, and Interest Rates.

Education Loan EMI Calculator

Got worried about the Education loans weighing on your shoulders with no financial planning? Leave it to the Education Loan EMI Calculator and manage your payments together for not getting stuck in a financial maze.

How to Use an EMI Calculator 

Calculators are there to make the mathematical muddle cleared without using a pen and a paper. You can apply a simple procedure for using the EMI Calculator on your phone, desktop, or any device where you can browse for our website. Let’s see how to use it –

1.  First of all, get to this link or if you’re already on the page, scroll up to the calculator.

2.  Start feeding the details with first the Principal Loan Amount.

3.  Afterward, fill in the interest rates being charged by the banks.

4.  Now, choose the tenure period (in years) on the last tab.

5.  Finally, click the Calculate button and wait for an eye blink.

Below are all the input parameters you need to feed on calculator with their significance –

Loan Amount – Loan Amount is the principal amount that you’re being filed with the interest charged by bank or any other financial institution. This amount would be gross after cutting the down payments. It’s a significant part for calculators to calculate installments on a tenure basis.

Interest Rate – Interest Rates are the charges (in percent) on the Principal amount that you’re going to pay back in the installments. You need to feed this info most importantly, otherwise the calculator would match accordingly with 0% charges; which is mostly impossible.

Loan Tenure – Loan Tenure is the period for which you’re going to keep the EMI installments running on the go. The more tenure period would influence the number of installments, and consistently the interest charges over time.

Benefits of Using an EMI Calculator

We are all battling so many financial crises in our way, filling numerous installments every month with the interest rates that can numb our minds. It’s not that easy without financial advice, and spending money on that would also be dumb for a few situations.

But this beneficial calculator can help you with the below few privileges to decipher everything –

  1. EMI Calculators take the slightest time and provide you with the accurate and quick Loan Repayment Estimations.
  2. It simplifies the high-end calculations and also helps you to budget the planning with other running EMIs.
  3. The first step to your financial planning would get easier even if you’re registering an account with us or not.
  4. There are different EMI calculators for different loan scenarios like Car Loan, Education Loan, Home Loan, and Personal Loan.
  5. This calculator is free to use and you don’t even have to watch any advertisements for going through the calculations.

Factors Affecting EMI Calculation

Befriending an EMI Calculator will help you in many ways, but most importantly by decoding the factors affecting EMI Calculation more simplistically. Below, we have listed all the three important factors that affect Equated Monthly Installments and financial planning –

Interest Rate Fluctuations

We all have acknowledged very well about the overwhelming interest rates being charged by financial institutions without struggling approaches. Most of the government banks and institutions don’t get any fluctuations, but converse banks would have these interest rate fluctuations as per the laws and clauses. This is the most affecting factor to EMI Calculation.

Loan Tenure

The number of installments remaining is calculated on the basis of loan tenure period. It can also impact the overall calculation and amortization, as most of the institutions also provide options to pay a higher amount once for budgeting EMIs. It also affects inversely for bouncing EMIs.

Principal Loan Amount

The higher the loan amount after considering down payments, the higher would be the number of installments, and consistently the interest rates. It’s also the most important factor and that’s why most of the advisors teach to pay as much down payments as you can initially.

Understanding the Amortization Schedule

When dealing with the EMIs, we’re basically fighting with the numbers and we said it most of the time in this informational article. But there is one secret technique which can untangle the abnormal calculation of these loan installments much easily. That’s what we call Amortization Schedules.

Basically, the Amortization Schedule is a list of all the monthly EMI schedules with advantageous details. These details contain the interest rates and principal amount being changed every month with the certain installment you’re paying. That’s how you can get served with details.

Analyzing Loan Repayment with an Amortization Schedule

You can analyze your loan repayments superficially with an amortization schedule, as it contains five important components, Month, Paid Principal, Interest Charged, Total EMI Payment, and Remaining Principal Balance. Use this data for planning finance even from 8 months later from today by knowing well about the amount that’d be remaining that time.

Visualizing Principal and Interest Components over Time

The best part of having a table of amortization schedules is the changes you can see among the principal amount and interest rates over time. This approach will make things more clear in your mind about when and how much you’ll get laid out after a tenure period. 

EMI Calculators vs. Manual Calculations

Anciently, immense people had used mathematics through the pen and paper, which made the EMI Calculations being mostly a mystery for most of the people. Nowadays, we’re more connected with technology and it’s time to break the time consuming manual procedures.

Pros of Manual Calculations

1.  By performing math yourself, you can hold a deep understanding of loan math.

2.  Take a pen and paper anywhere and get started with the EMI Factors.

Cons of Manual Calculations

1.  More time consuming by hyper decimal calculations.

2.  A single mistaken change of any factor can ruin the whole calculation.

3.  Complex to make Amortization Scheduling in moments.

Advantages of using EMI Calculator

1.  Feed 3-4 required details and EMI Calculation would get on the screen.

2.  No need of wasting much time and space for the 100% accurate results.

3.  No need of memorizing larger formulas for calculation.

4.  Automatically generate Amortization Scheduling tables.

Tips for Using EMI Calculators Effectively

EMI Calculators would make things more precise up to the next level, but we’re going to take you to the Level 3 with some amazing tips for using them more effectively. Down below, the list will show you some tricks you can play on that precise calculator and know more than basic –

Checking EMI Affordability

Before being sanctioned to a new loan, you can use the EMI Calculator to try different metrics for the principal amount, interest rates, and tenure period. It can make you sure about the parameters till which you have those EMIs affordable and how down payment plays a big role.

Optimizing Loan Parameters

Every loan parameter can influence the equated monthly installments uniquely. Using the EMI Calculator can be more productive once you are optimizing all these parameters one by one as you don’t need to put any formulae every time. Optimize tenure period for decreasing number of installments, or the principal amount to reduce the interest charges on the precise.

Evaluating Prepayment Options

Prepayment stands for the Down Payments that you can pay for most of the products such as a Car, Smartphone, Smart Television, Laptop, or Furniture. Try evaluating the prepayment uniquely to find out which plan is soundier and more affordable to your finances.

Frequently Asked Questions (FAQs) 

What is the purpose of an EMI calculator?

EMI Calculator is proposed to make the deep mathematical formulas instantaneous for the people finding their way out to financial budgeting. It instantly assesses the installments and amortization scheduling to help you plan easily. 

Are EMI calculators accurate?

Yeah, EMI Calculators work with the actual EMI generation formulas, on the basis of all the important parameters, including Principal Amount, Interest Rates, and Tenure Period. Once you feed all the correct details, the evaluation would be 100% accurate.

Can I use an EMI calculator for different types of loans?

There are multiple types of EMI Calculators and we had added details about each of them in this article. You can use them differently for unique types of loans.

How often should I use an EMI calculator?

We’d recommend you to use it every month before your EMI payments to have a track on the upcoming amortization schedule and for feeding the interest rate fluctuations. Taking financial things lightly can really make you undergo the darkness of worse charges. 

Can an EMI calculator help me plan for prepayments?

Yeah, EMI Calculators have an option to create a table of Amortization Schedule. This table can demystify the plan for prepayments as well as discovering the remaining principal amount in real time.


The impressive journey through all the sides of loans and EMI Calculation is finally going to end now. We are glad that you awaited through the whole article to get acknowledged about this mighty weapon, EMI Calculator for solving most of the financial problems related to the loans.

This tool will help you to keep the manual calculations away and have 100% accurate installment details in an instant delay. You won’t need a pen or a paper once you have got an internet connection, and browsing our extraordinary calculator tool.

Furthermore, the tool will also help you in making the future financial decisions through the Amortization Schedule table consisting of the remaining principal amount over time. Now, you have the knowledge, factors, parameters, and lastly a precise tool to get precise calculations.

Use it well to empower your upcoming financial decisions. We hope you adored this tool!

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Hi, I'm Bhupendra, a financial enthusiast. Join me on my website for tips on making money, stocks, mutual funds, and personal finance. You'll also find helpful financial calculators to assist with your financial planning.