Now, an EMI calculator is a utility tool which helps you understand how much EMI you have to pay every month.

What is the process to calculate the EMI?

EMI calculation is a complicated process. To calculate your EMI correctly, you will have to use the following formula:

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

In this EMI calculation formula,

EMI denotes your monthly instalments,

P denotes the principal amount that you have taken on loan,

R stands for the rate of interest, which depends from bank to bank,

N stands for the total time period for which you have taken the loan

Therefore, as you can see the loan EMI calculation formula is quite complicated. That is why, to make things easier for you as a customer, the EMI calculator plays a key role. By using the online EMI calculator, you won’t have to work on all these complex numbers yourself. Instead, all you have to do is enter the values and the EMI calculator will show you the right values within a second.

How can I use an EMI calculator?

Using an online EMI calculator is extremely easy and straightforward. You just have to enter the values as prompted on the online EMI calculator and you will see the EMI value almost instantly. The values you enter are as per your wish.

Here’s how to use an online EMI calculator:

• Visit the online EMI calculator page of your choice


• Type in the personal loan amount or drag the bar


• Similarly, type in the tenure or time period or drag the bar


• Finally, adjust your rate of interest


• The EMI calculator will immediately show you all the values: the total interest you will be paying and the EMI at the start of each month

Therefore, using the EMI calculator is one of the best ways to estimate how much EMI or interest you will be paying when you take a personal loan.

Benefits of EMI Calculator?

Here are some of the biggest benefits of an EMI calculator:

Simple and easy way to find out EMIs

Most personal loan providers offer an EMI calculator facility on their website. This is because the EMI calculator is extremely handy for those who wish to apply for a personal loan and plan their finances better. Users will just have to enter some basic information and get instant results.

No need to perform manual calculations

The EMI calculation formula is not simple and can be time-consuming. Instead, personal loan applicants can use the online EMI calculator to find out the value in an instant. You won’t have to sit down with a pen and paper and work out a lengthy formula with multiple variables.

Provides better information

If you are looking to apply for a personal loan but are not sure of the exact amount, then the EMI calculator is a great feature to use. The online EMI calculator will show you the exact amount that you need to pay, with a clear bifurcation of the EMI amount, interest and the principal. Therefore, by using the online EMI calculator, you get a clear idea of all the aspects of your personal loan repayment.

How to get a lower EMI?

Here are some of the ways in which you can get a lower EMI:

• Research various personal loan lenders to ensure you are getting the best deal


• Choose a longer time period for your personal loan


• Ensure that you have a good credit score


• Try to reduce the personal loan amount, if possible


• If all the above steps fail, try to negotiate with the personal loan provider for a better rate

Floating Rate EMI Calculation

The EMI formula for a floating rate of interest rate remains the same. The only change is the fact that in the case of floating rates, your rate of interest will be affected based on the market. To get the best deal on floating rate EMIs, always ensure that you input the corresponding values on an EMI calculator to check the EMI amount you will have to pay each month.