Are the calculators for home, car and personal loans the same?

In most cases they can be the same since all three loans work off the same basic set of information like amount borrowed, prepayments, tenure, interest rates and processing fee however with some calculators there could be a restriction placed on the amount to borrow based on the type of loan.

Is the Equated Monthly Instalment amount shown by the calculator the same as that which the bank will ask me to pay?

When it comes to the EMI, assuming that the bank will approve the amount and tenure, the exact instalment that you will have to pay may differ slightly since there is a chance that things like the interest rates and the processing fee may be a bit different from what you used while calculating the due amount.

What happens if I fail to make an Equated Monthly Instalment payment?

The bank will charge a penalty fee if a borrower misses an EMI payment. A missed or delayed instalment payment will reflect on your credit report. Not making loan due amount payments on time can have a negative effect on your credit score.

Is my loan EMI fixed or can it change over the loan tenure?

In the case of a business loan and home loan, banks offer floating rate of interest. Therefore, your loan instalment may change with the change in interest rate. Some banks allow you keep the Equated Monthly Instalment constant while increasing the loan tenure. Loan prepayment can also change your due amount. Banks will give you the option to either keep the EMI constant and decrease the loan tenure or reduce the Equated Monthly Instalment and keep the loan tenure the same.

Is it good to pre-close a loan before the end of its tenure?

Pre-closing your loan before the end of its tenure can have a negative effect on your credit score. Making timely due payments can help you improve your credit score. Therefore, opt to prepay a part of your loan (not the whole loan) and reduce the loan tenure to save up on interest payments. Banks charge a penalty fee for prepayment.

What happens if you fail to pay your EMI?

If you miss an EMI payment or pay it after the due date, the majority of lenders charge late payment fees or penalties. These fees may increase your overall debt and raise the cost of repaying the loan. Additionally, your credit score may be impacted if you miss EMI payments. Your credit score is significantly influenced by your payment history, and missed or late payments can lower your score, making it more difficult to get credit in the future. Apart from this, in extreme non-payment situations, the lender may file a lawsuit to recoup the amount. This may lead to legal action, and if the lender is successful in getting their way, they may be able to take your assets or garnish your salary in order to recoup the unpaid balance.

What are the benefits of an EMI calculator?

Based on your loan amount, interest rate, and loan term, EMI calculators provide you exact monthly installment amounts. You can better organise your money and make sure you can comfortably meet your repayment commitments thanks to this precision. To determine how changes in interest rates would impact your monthly payments, utilise an EMI calculator. When choosing loan products or haggling interest rates with lenders, this information can assist you in making well-informed selections. EMI calculators offer quick results and are simple to use. Without the need for intricate computations, you may swiftly evaluate many circumstances and come to intelligent conclusions.

Will the bank's EMI calculation differ from the EMI calculator?

Assuming that both sides utilise the same loan parameters and formulae, the EMI computed by a bank or financial institution should match the EMI calculated using an EMI calculator. While some internet calculators may offer more decimal places, banks may round off the EMI computation to the next whole number or a certain decimal point. The computed EMI may experience slight fluctuations as a result.

Is it good to pay EMI on time?

Yes, paying EMI regularly will improve your credit score.

EMI Calculator - Calculate EMI on Home, Car and Personal Loans

Loan Amount

3000000

Please select no more than 8 characters

Tenure

180

Loan Amount:

Required Field

Tenure in Months:

Required Field

Interest Rate in %:

Please select range between 1 to 50 Common Icon Error

Please enter valid interest rate

Processing Fee: (% of loan amount)

Please enter range between 1 to 10 Common Icon Error

Please enter valid processing fee

Would you like to make Pre-payments?

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Pre-payment Frequency

Pre-payment starts in Common Icon Error

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Pre-payment amount Common Icon Error

Hi! Please provide an input

Loan Completion Month Common Icon Error

Hi! Please provide an input

Pre-payment Fee %

Pre-payment Applies to

Your Monthly Loan EMI: 28,670

Monthly amount paid to your Loan provider

Break-up of all total amount payable

Loan Amount

Total Interest Due

Processing Fee

Loan Amount Via EMI

28,670

Loan Amount Prepaid

Total Interest

Processing Fee

Pre-payment Fee

28,670

Total Amount Payable

Your loan details as specified by you

Loan Amount

Tenure

15 Years

Interest Rate

Processing Fee

Pre-payment

28,670

Your Repayment Details (Yearly/Monthly)

Your debt repayment schedule in regular instalments over a period of time.

Principal Paid Interest Paid Outstanding Loan BalanceO/S Balance(Without Pre-payment) O/S Balance(With Pre-payment)

Year	Principal Paid(A)1	Interest Paid(B)	Total Payment (A+B)	Outstanding Loan Balance
1	4,977	13,958	18,935	24,95,023
Dec	4,977	13,958	18,935	24,95,023
2	61,929	1,65,289	2,27,218	24,33,093
Jan	5,004	13,931	18,935	24,90,019
Feb	5,032	13,903	18,935	24,84,987
Mar	5,060	13,875	18,935	24,79,927
Apr	5,089	13,846	18,935	24,74,838
May	5,117	13,818	18,935	24,69,721
Jun	5,146	13,789	18,935	24,64,575
July	5,174	13,761	18,935	24,59,401
Aug	5,203	13,732	18,935	24,54,198
Sep	5,232	13,703	18,935	24,48,966
Oct	5,261	13,673	18,934	24,43,704
Nov	5,291	13,644	18,935	24,38,413
Dec	5,320	13,614	18,934	24,33,093
3	66,210	1,61,009	2,27,219	23,66,883
Jan	5,350	13,585	18,935	24,27,743
Feb	5,380	13,555	18,935	24,22,363
Mar	5,410	13,525	18,935	24,16,953
Apr	5,440	13,495	18,935	24,11,513
May	5,471	13,464	18,935	24,06,042
Jun	5,501	13,434	18,935	24,00,541
July	5,532	13,403	18,935	23,95,009
Aug	5,563	13,372	18,935	23,89,446
Sep	5,594	13,341	18,935	23,83,853
Oct	5,625	13,310	18,935	23,78,228
Nov	5,656	13,278	18,934	23,72,571
Dec	5,688	13,247	18,935	23,66,883
4	70,785	1,56,435	2,27,220	22,96,099
Jan	5,720	13,215	18,935	23,61,163
Feb	5,752	13,183	18,935	23,55,412
Mar	5,784	13,151	18,935	23,49,628
Apr	5,816	13,119	18,935	23,43,812
May	5,849	13,086	18,935	23,37,963
Jun	5,881	13,054	18,935	23,32,082
July	5,914	13,021	18,935	23,26,168
Aug	5,947	12,988	18,935	23,20,221
Sep	5,980	12,955	18,935	23,14,241
Oct	6,014	12,921	18,935	23,08,227
Nov	6,047	12,888	18,935	23,02,180
Dec	6,081	12,854	18,935	22,96,099
5	75,676	1,51,543	2,27,219	22,20,423
Jan	6,115	12,820	18,935	22,89,984
Feb	6,149	12,786	18,935	22,83,835
Mar	6,183	12,751	18,934	22,77,651
Apr	6,218	12,717	18,935	22,71,433
May	6,253	12,682	18,935	22,65,180
Jun	6,288	12,647	18,935	22,58,893
July	6,323	12,612	18,935	22,52,570
Aug	6,358	12,577	18,935	22,46,212
Sep	6,394	12,541	18,935	22,39,819
Oct	6,429	12,506	18,935	22,33,389
Nov	6,465	12,470	18,935	22,26,924
Dec	6,501	12,434	18,935	22,20,423
6	80,904	1,46,313	2,27,217	21,39,519
Jan	6,537	12,397	18,934	22,13,886
Feb	6,574	12,361	18,935	22,07,312
Mar	6,611	12,324	18,935	22,00,701
Apr	6,648	12,287	18,935	21,94,053
May	6,685	12,250	18,935	21,87,369
Jun	6,722	12,213	18,935	21,80,647
July	6,760	12,175	18,935	21,73,887
Aug	6,797	12,138	18,935	21,67,090
Sep	6,835	12,100	18,935	21,60,254
Oct	6,873	12,061	18,934	21,53,381
Nov	6,912	12,023	18,935	21,46,469
Dec	6,950	11,984	18,934	21,39,519
7	86,495	1,40,722	2,27,217	20,53,024
Jan	6,989	11,946	18,935	21,32,530
Feb	7,028	11,907	18,935	21,25,501
Mar	7,067	11,867	18,934	21,18,434
Apr	7,107	11,828	18,935	21,11,327
May	7,147	11,788	18,935	21,04,180
Jun	7,187	11,748	18,935	20,96,994
July	7,227	11,708	18,935	20,89,767
Aug	7,267	11,668	18,935	20,82,500
Sep	7,308	11,627	18,935	20,75,193
Oct	7,348	11,586	18,934	20,67,844
Nov	7,389	11,545	18,934	20,60,455
Dec	7,431	11,504	18,935	20,53,024
8	92,470	1,34,748	2,27,218	19,60,553
Jan	7,472	11,463	18,935	20,45,552
Feb	7,514	11,421	18,935	20,38,038
Mar	7,556	11,379	18,935	20,30,482
Apr	7,598	11,337	18,935	20,22,884
May	7,640	11,294	18,934	20,15,244
Jun	7,683	11,252	18,935	20,07,561
July	7,726	11,209	18,935	19,99,835
Aug	7,769	11,166	18,935	19,92,066
Sep	7,812	11,122	18,934	19,84,253
Oct	7,856	11,079	18,935	19,76,397
Nov	7,900	11,035	18,935	19,68,497
Dec	7,944	10,991	18,935	19,60,553
9	98,860	1,28,359	2,27,219	18,61,693
Jan	7,988	10,946	18,934	19,52,565
Feb	8,033	10,902	18,935	19,44,532
Mar	8,078	10,857	18,935	19,36,454
Apr	8,123	10,812	18,935	19,28,331
May	8,168	10,767	18,935	19,20,162
Jun	8,214	10,721	18,935	19,11,949
July	8,260	10,675	18,935	19,03,689
Aug	8,306	10,629	18,935	18,95,383
Sep	8,352	10,583	18,935	18,87,030
Oct	8,399	10,536	18,935	18,78,632
Nov	8,446	10,489	18,935	18,70,186
Dec	8,493	10,442	18,935	18,61,693
10	1,05,691	1,21,526	2,27,217	17,56,001
Jan	8,540	10,394	18,934	18,53,152
Feb	8,588	10,347	18,935	18,44,564
Mar	8,636	10,299	18,935	18,35,928
Apr	8,684	10,251	18,935	18,27,244
May	8,733	10,202	18,935	18,18,511
Jun	8,782	10,153	18,935	18,09,730
July	8,831	10,104	18,935	18,00,899
Aug	8,880	10,055	18,935	17,92,019
Sep	8,929	10,005	18,934	17,83,090
Oct	8,979	9,956	18,935	17,74,111
Nov	9,029	9,905	18,934	17,65,081
Dec	9,080	9,855	18,935	17,56,001
11	1,12,993	1,14,224	2,27,217	16,43,007
Jan	9,131	9,804	18,935	17,46,871
Feb	9,181	9,753	18,934	17,37,689
Mar	9,233	9,702	18,935	17,28,457
Apr	9,284	9,651	18,935	17,19,172
May	9,336	9,599	18,935	17,09,836
Jun	9,388	9,547	18,935	17,00,448
July	9,441	9,494	18,935	16,91,007
Aug	9,493	9,441	18,934	16,81,514
Sep	9,546	9,388	18,934	16,71,967
Oct	9,600	9,335	18,935	16,62,368
Nov	9,653	9,282	18,935	16,52,714
Dec	9,707	9,228	18,935	16,43,007
12	1,20,801	1,06,417	2,27,218	15,22,206
Jan	9,761	9,173	18,934	16,33,246
Feb	9,816	9,119	18,935	16,23,430
Mar	9,871	9,064	18,935	16,13,559
Apr	9,926	9,009	18,935	16,03,633
May	9,981	8,954	18,935	15,93,652
Jun	10,037	8,898	18,935	15,83,615
July	10,093	8,842	18,935	15,73,522
Aug	10,149	8,785	18,934	15,63,373
Sep	10,206	8,729	18,935	15,53,167
Oct	10,263	8,672	18,935	15,42,904
Nov	10,320	8,615	18,935	15,32,583
Dec	10,378	8,557	18,935	15,22,206
13	1,29,148	98,069	2,27,217	13,93,057
Jan	10,436	8,499	18,935	15,11,770
Feb	10,494	8,441	18,935	15,01,276
Mar	10,553	8,382	18,935	14,90,723
Apr	10,612	8,323	18,935	14,80,111
May	10,671	8,264	18,935	14,69,440
Jun	10,730	8,204	18,934	14,58,710
July	10,790	8,144	18,934	14,47,919
Aug	10,851	8,084	18,935	14,37,069
Sep	10,911	8,024	18,935	14,26,158
Oct	10,972	7,963	18,935	14,15,185
Nov	11,033	7,901	18,934	14,04,152
Dec	11,095	7,840	18,935	13,93,057
14	1,38,072	89,147	2,27,219	12,54,985
Jan	11,157	7,778	18,935	13,81,900
Feb	11,219	7,716	18,935	13,70,681
Mar	11,282	7,653	18,935	13,59,399
Apr	11,345	7,590	18,935	13,48,054
May	11,408	7,527	18,935	13,36,646
Jun	11,472	7,463	18,935	13,25,174
July	11,536	7,399	18,935	13,13,638
Aug	11,600	7,334	18,934	13,02,037
Sep	11,665	7,270	18,935	12,90,372
Oct	11,730	7,205	18,935	12,78,642
Nov	11,796	7,139	18,935	12,66,846
Dec	11,862	7,073	18,935	12,54,985
15	1,47,612	79,605	2,27,217	11,07,372
Jan	11,928	7,007	18,935	12,43,057
Feb	11,994	6,940	18,934	12,31,062
Mar	12,061	6,873	18,934	12,19,001
Apr	12,129	6,806	18,935	12,06,872
May	12,196	6,738	18,934	11,94,676
Jun	12,265	6,670	18,935	11,82,411
July	12,333	6,602	18,935	11,70,078
Aug	12,402	6,533	18,935	11,57,676
Sep	12,471	6,464	18,935	11,45,205
Oct	12,541	6,394	18,935	11,32,664
Nov	12,611	6,324	18,935	11,20,053
Dec	12,681	6,254	18,935	11,07,372
16	1,57,811	69,408	2,27,219	9,49,560
Jan	12,752	6,183	18,935	10,94,620
Feb	12,823	6,112	18,935	10,81,797
Mar	12,895	6,040	18,935	10,68,902
Apr	12,967	5,968	18,935	10,55,935
May	13,039	5,896	18,935	10,42,896
Jun	13,112	5,823	18,935	10,29,784
July	13,185	5,750	18,935	10,16,599
Aug	13,259	5,676	18,935	10,03,340
Sep	13,333	5,602	18,935	9,90,007
Oct	13,407	5,528	18,935	9,76,600
Nov	13,482	5,453	18,935	9,63,118
Dec	13,557	5,377	18,934	9,49,560
17	1,68,716	58,504	2,27,220	7,80,844
Jan	13,633	5,302	18,935	9,35,927
Feb	13,709	5,226	18,935	9,22,218
Mar	13,786	5,149	18,935	9,08,432
Apr	13,863	5,072	18,935	8,94,569
May	13,940	4,995	18,935	8,80,629
Jun	14,018	4,917	18,935	8,66,611
July	14,096	4,839	18,935	8,52,515
Aug	14,175	4,760	18,935	8,38,340
Sep	14,254	4,681	18,935	8,24,086
Oct	14,334	4,601	18,935	8,09,752
Nov	14,414	4,521	18,935	7,95,338
Dec	14,494	4,441	18,935	7,80,844
18	1,80,374	46,844	2,27,218	6,00,470
Jan	14,575	4,360	18,935	7,66,269
Feb	14,657	4,278	18,935	7,51,612
Mar	14,738	4,197	18,935	7,36,874
Apr	14,821	4,114	18,935	7,22,053
May	14,903	4,031	18,934	7,07,150
Jun	14,987	3,948	18,935	6,92,163
July	15,070	3,865	18,935	6,77,093
Aug	15,154	3,780	18,934	6,61,938
Sep	15,239	3,696	18,935	6,46,699
Oct	15,324	3,611	18,935	6,31,375
Nov	15,410	3,525	18,935	6,15,966
Dec	15,496	3,439	18,935	6,00,470
19	1,92,837	34,381	2,27,218	4,07,633
Jan	15,582	3,353	18,935	5,84,888
Feb	15,669	3,266	18,935	5,69,218
Mar	15,757	3,178	18,935	5,53,462
Apr	15,845	3,090	18,935	5,37,617
May	15,933	3,002	18,935	5,21,684
Jun	16,022	2,913	18,935	5,05,662
July	16,112	2,823	18,935	4,89,550
Aug	16,202	2,733	18,935	4,73,349
Sep	16,292	2,643	18,935	4,57,057
Oct	16,383	2,552	18,935	4,40,674
Nov	16,474	2,460	18,934	4,24,199
Dec	16,566	2,368	18,934	4,07,633
20	2,06,162	21,057	2,27,219	2,01,471
Jan	16,659	2,276	18,935	3,90,974
Feb	16,752	2,183	18,935	3,74,222
Mar	16,845	2,089	18,934	3,57,377
Apr	16,940	1,995	18,935	3,40,437
May	17,034	1,901	18,935	3,23,403
Jun	17,129	1,806	18,935	3,06,274
July	17,225	1,710	18,935	2,89,049
Aug	17,321	1,614	18,935	2,71,728
Sep	17,418	1,517	18,935	2,54,310
Oct	17,515	1,420	18,935	2,36,795
Nov	17,613	1,322	18,935	2,19,183
Dec	17,711	1,224	18,935	2,01,471
21	2,01,471	6,812	2,08,283	0
Jan	17,810	1,125	18,935	1,83,662
Feb	17,909	1,025	18,934	1,65,752
Mar	18,009	925	18,934	1,47,743
Apr	18,110	825	18,935	1,29,633
May	18,211	724	18,935	1,11,422
Jun	18,313	622	18,935	93,109
July	18,415	520	18,935	74,694
Aug	18,518	417	18,935	56,176
Sep	18,621	314	18,935	37,555
Oct	18,725	210	18,935	18,830
Nov	18,830	105	18,935	0

Formula to calculate EMI

The formula which is used to calculate the equated monthly installments which you are required to pay the lender for availing the loan is

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

where P stands for principal amount, R is rate of interest and N is loan tenure.

Personal Loan EMI

Let us assume that these are the details of your personal loan by using personal loan EMI calculator :

Loan amount	Loan tenure	Interest rate	Processing fee	Loan EMI
Rs.10 lakh	5 years	10.99%	2%	Rs.21,737

Total amount payable

Total interest due	Rs.3,04,246
Processing fee	Rs.20,000
Loan quantum	Rs.10 lakh
Total amount to be paid	Rs.13,24,246

EMI breakup for a personal loan of Rs.10 lakh

Year	Principal (in Rs.)	Interest (in Rs.)	Total of Principal and Interest (in Rs.)	Outstanding Loan Balance (in Rs.)
2020	90,510	61,652	1,52,162	9,09,490
2021	1,69,254	91,597	2,60,851	7,40,236
2022	1,88,821	72,029	2,60,850	5,51,416
2023	2,10,649	50,199	2,60,848	3,40,766
2024	2,35,002	25,846	2,60,848	1,05,764
2025	1,05,764	2,923	1,08,687	0

The above calculation has been done assuming that you are not making any prepayments and the loan has been availed in the month of June 2020.

Home Loan EMI

Let us assume that these are the details of your home loan by using home loan EMI calculator :

Loan amount	Loan tenure	Interest rate	Processing fee	Loan EMI
Rs.40 lakh	10 years	9.75%	0.5%	Rs.52,308

Total amount payable

Total interest due	Rs.22,76,972
Processing fee	Rs.20,000
Loan quantum	Rs.40 lakh
Total amount to be paid	Rs.62,96,972

EMI breakup for a home loan of Rs.40 lakh

Year	Principal (in Rs.)	Interest (in Rs.)	Total of Principal and Interest (in Rs.)	Outstanding Loan Balance (in Rs.)
2020	1,42,083	2,24,074	3,66,157	38,57,917
2021	2,63,101	3,64,597	6,27,698	35,94,816
2022	2,89,931	3,37,766	6,27,697	33,04,884
2023	3,19,496	3,08,200	6,27,696	29,85,386
2024	3,52,080	2,75,617	6,27,697	26,33,306
2025	3,87,983	2,39,713	6,27,696	22,45,322
2026	4,27,550	2,00,147	6,27,697	18,17,773
2027	4,71,150	1,56,546	6,27,696	13,46,623
2028	5,19,197	1,08,499	6,27,696	8,27,427
2029	5,72,141	55,555	6,27,696	2,55,284
2030	2,55,284	6,257	2,61,541	0

The above calculation has been done assuming that you are not making any prepayments and the loan has been availed in the month of June 2020.

Car Loan EMI

Let us assume that these are the details of your car loan by using car loan EMI calculator :

Loan amount	Loan tenure	Interest rate	Processing fee	Loan EMI
Rs.8 lakh	5 years	9.12%	2.5%	Rs.16,653

Total amount payable

Total interest due	Rs.1,99,199
Processing fee	Rs.20,000
Loan quantum	Rs.8 lakh
Total amount to be paid	Rs.10,19,199

EMI breakup for a car loan of Rs.18 lakh

Year	Principal	Interest	Total of Principal and Interest	Outstanding Loan Balance
2020	75,722	40,852	1,16,574	7,24,278
2021	1,39,524	60,317	1,99,841	5,84,756
2022	1,52,793	47,049	1,99,842	4,31,964
2023	1,67,324	32,516	1,99,840	2,64,640
2024	1,83,238	16,602	1,99,840	81,401
2025	81,402	1,866	83,268	0

The above calculation has been done assuming that you are not making any prepayments and the loan has been availed in the month of June 2020.

How BankBazaar Personal/Home/Car Loan EMI Calculator Works?

The BankBazaar Equated Monthly Instalment Calculator is very easy to use. It uses some basic details of the loan that you are willing to avail. In the calculator, you will be required to provide the following details:

Adjust the slider on the top or type the loan amount.
Under the ‘Loan Amount’ slider, adjust the ‘Tenure’ slider or type in the loan repayment tenure that you are willing to avail.
Fill in the field provided for the rate of interest.
Fill in the field provided for the processing fee.
Check the box under these field, if you want to make pre-payments.
Hit the ‘Calculate’ button after entering all details.

After this, the BankBazaar EMI Calculator will process the details and show you ‘Your Monthly Loan EMI’ amount. In addition to this, the calculator will also display a detailed amortisation table for the loan. The actual loan amount, total due interest, and the processing fee are also calculated and displayed at the same time.

Effect of loan prepayment on your Instalment payments

Should you find yourself flush with cash, you may decide to prepay your loan (i.e. pay an extra amount towards principal). If so, you can calculate your new EMIs by adjusting for the amount you wish to prepay. This will let you know how much interest you save by reducing the principal outstanding. (interest is calculated on the principal outstanding).

On the basis of the prepayment that you make and the terms and conditions of the loan-provider, you might be required to pay an extra amount in the form of prepayment charge or fee.

Factors that can impact your due amount

When you are planning to take a loan for your financial needs, you need to calculate the amount that you will have to pay through equated monthly installments in order to match with your repayment capability. For this, you will need to take a few factors under consideration which can be altered to meet your loan requirement and repayment capability:

Rate of Interest (ROI): The rate of interest of the loan that you are availing will contribute in determining the due instalment amount. The best way forward would be to compare different loan products and then choosing the one that serves you best. A lower rate of interest will mean that the overall amount that you pay towards interest will also be low.
Loan amount: The loan amount will also help in determining the overall EMI amount that you would have to pay. Thus, choosing the loan amount wisely is an important step.
When the term of the loan changes If a person manages to get his or her loan tenure extended or reduced, the Equated Monthly Instalment payable towards the loan will also increase or decrease accordingly in order to adjust to the new loan tenure. If you opt for a long tenure, you will have to pay more money towards interest in the long run. However, a shorter term of the loan will translate to less amount to be paid as interest but higher EMIs.

FAQs on EMI Calculator

Are the calculators for home, car and personal loans the same?
In most cases they can be the same since all three loans work off the same basic set of information like amount borrowed, prepayments, tenure, interest rates and processing fee however with some calculators there could be a restriction placed on the amount to borrow based on the type of loan.
Is the Equated Monthly Instalment amount shown by the calculator the same as that which the bank will ask me to pay?
When it comes to the EMI, assuming that the bank will approve the amount and tenure, the exact instalment that you will have to pay may differ slightly since there is a chance that things like the interest rates and the processing fee may be a bit different from what you used while calculating the due amount.
What happens if I fail to make an Equated Monthly Instalment payment?
The bank will charge a penalty fee if a borrower misses an EMI payment. A missed or delayed instalment payment will reflect on your credit report. Not making loan due amount payments on time can have a negative effect on your credit score.
Is my loan EMI fixed or can it change over the loan tenure?
In the case of a business loan and home loan, banks offer floating rate of interest. Therefore, your loan instalment may change with the change in interest rate. Some banks allow you keep the Equated Monthly Instalment constant while increasing the loan tenure. Loan prepayment can also change your due amount. Banks will give you the option to either keep the EMI constant and decrease the loan tenure or reduce the Equated Monthly Instalment and keep the loan tenure the same.
Is it good to pre-close a loan before the end of its tenure?
Pre-closing your loan before the end of its tenure can have a negative effect on your credit score. Making timely due payments can help you improve your credit score. Therefore, opt to prepay a part of your loan (not the whole loan) and reduce the loan tenure to save up on interest payments. Banks charge a penalty fee for prepayment.
What happens if you fail to pay your EMI?
If you miss an EMI payment or pay it after the due date, the majority of lenders charge late payment fees or penalties. These fees may increase your overall debt and raise the cost of repaying the loan. Additionally, your credit score may be impacted if you miss EMI payments. Your credit score is significantly influenced by your payment history, and missed or late payments can lower your score, making it more difficult to get credit in the future. Apart from this, in extreme non-payment situations, the lender may file a lawsuit to recoup the amount. This may lead to legal action, and if the lender is successful in getting their way, they may be able to take your assets or garnish your salary in order to recoup the unpaid balance.
What are the benefits of an EMI calculator?
Based on your loan amount, interest rate, and loan term, EMI calculators provide you exact monthly installment amounts. You can better organise your money and make sure you can comfortably meet your repayment commitments thanks to this precision. To determine how changes in interest rates would impact your monthly payments, utilise an EMI calculator. When choosing loan products or haggling interest rates with lenders, this information can assist you in making well-informed selections. EMI calculators offer quick results and are simple to use. Without the need for intricate computations, you may swiftly evaluate many circumstances and come to intelligent conclusions.
Will the bank's EMI calculation differ from the EMI calculator?
Assuming that both sides utilise the same loan parameters and formulae, the EMI computed by a bank or financial institution should match the EMI calculated using an EMI calculator. While some internet calculators may offer more decimal places, banks may round off the EMI computation to the next whole number or a certain decimal point. The computed EMI may experience slight fluctuations as a result.
Is it good to pay EMI on time?
Yes, paying EMI regularly will improve your credit score.
What is the formula to calculate EMI?
The formula to calculate EMI is EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)].

Further Reading about EMI Calculator

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Calculate HDFC Loan EMI Using Bankbazaar EMI Calculator

How To Calculate Your HDFC Loan EMI Using BankBazaar.com's EMI Calculator

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The most common thing everyone asks when they avail a loan is “What are EMIs? How do I know how much I have to repay every month to clear my loan?”

Understanding EMIs and amortization tables is probably the most confusing part of the entire process of availing any kind of loan. The EMI, or Equated Monthly Instalment, is important because it signifies monthly outflows towards repayment of the loan.

In order to calculate EMI for your loan, you should first understand its components:

Components of an EMI

Loan Amount: This is the amount borrowed from the lender. As the loan amount increases, the EMIs to be paid also increases.
Loan period or tenure: This is the duration within which the loan has to be repaid, inclusive of interest. EMIs can be adjusted by altering the loan period. By extending the loan period, the amount of EMIs payable can be reduced and vice-versa. While shortening the loan period results in higher monthly outflows, lengthening it results in a larger interest component.
Loan Interest Rates: Interest rates can be either fixed or floating. Floating interest rates change according to fluctuations in market rates. Fixed rates remain unchanged for a considerable duration of the loan period or until maturity depending on the loan agreement.

Calculating EMIs

The formula consists of using the loan amount, interest rate and tenure of the loan (in months): to find out your EMI (Equated Monthly Instalments)

M = No of months to pay the loan
I = (loan interest rate per annum / 12) / 100
L = Loan amount
(Loan amount x Interest rate/12) x ((1+ interest rate/12) ^ loan tenure in number of months) / ([1+ interest rate/12) ^ loan tenure in number of months]-1)
For example: A person has taken a loan of Rs. 5 lakhs from the lender with an interest rate of 12% for 10 years.
In this case:
M (Loan period in months) = No. of Years X 12 = 10 X 12 = 120
I (Interest rate per year/ 12) = (12/100) / 12 = .01
L (Loan amount) = Rs.5,00,000

EMI, to be paid is Rs. 7147
In the 10 years the total payment made by the person to the lender (EMI X Total tenure in months (7174 X 120) is Rs 8,60,880
The total interest rate will come around (Total payment – loan amount) Rs. 3,60,88

Manoj Kumar, 29, a Bangalore-based MNC employee, fulfilled his dream of owning a new a car in 2010. He bought a car for about Rs 5.95 lakh. He managed to do this by availing a car loan. The down payment he was required to pay was Rs 1.5 lakh and the remaining amount was funded by his auto financier. The car loan interest rate was 12% p.a. and the loan tenure was set at four years. As per the terms of the agreement, he currently pays a monthly EMI of Rs. 11,700. Manoj goes by the payment schedule as set out by the bank. But, how does he verify the amounts payable as per the schedule? Is there any way he can reduce or increase the EMI based on his financial situation?

Calculating EMIs can be confusing and tedious. There are many borrowers who find it hard to understand EMI calculations and Manoj is no exception. Most borrowers are unsure whether they are paying the right amount as EMIs; in many cases, the lenders themselves may have erred in their calculations.

The irony of it all it that EMIs are not that hard to understand. Using MS Excel, a very popular tool used the world over, anyone can easily calculate the amounts due as EMIs.

MICROSOFT EXCEL FOR EMI CALCULATION

An Excel spreadsheet is a software specifically designed for mathematical calculations and performs calculations using a number of preset formulae. This makes it one of the most convenient tools to calculate and understand EMIs or repayment schedules.

STEPS TO CALCULATE LOAN EMIs USING EXCEL

To calculate loan EMIs using Excel, you have to use the function ‘PMT’ . You will need to know the rate of interest (rate), the tenure of your loan (nper) and, the value of the loan or present value (PV). Apply this to the formula: =PMT(rate,nper,pv).

Example:
Let us consider Manoj’s case and calculate the EMIs on his loan using an Excel sheet.
Note that the rate of interest for calculating the EMI on your loan must be the monthly interest rate In Manoj’s case it is 12%/12=1% or 0.01.
The tenure of the loan has to be considered in terms of the total number of months
In Manoj’s case it is 4 yrs. and 12 months = 48 months or 48 EMIs.
Applying this data in the formula
=PMT(0.12/12, 4*12, 445,000)= 11,718
The result is displayed as a negative value. This is the amount to be paid as EMI.

ADJUSTING PAYMENT FREQUENCIES

If you were to choose a different frequency, say a quarterly payment schedule as opposed to monthly payments, all you would have to do is factor this into the formula to get the desired results.

Example:
Consider quarterly installments for a loan of Rs 10 lakh at 10% interest p.a. for a loan period of 20 years.
In this case, the interest rate and loan period will not be considered in terms of the total number of months but in the total number of quarters.
Interest rate = 10%/4
Loan period = 20 years * 4 quarters per year = 80 equated instalments
Apply this data to the formula as described above and the quarterly payments due over the loan period will be displayed.

Its really as simple as plugging in data and receiving results, completely eliminating confusion and anomalies. This not only helps you as a borrower in choosing the right loan plan but also helps you adjust your EMIs according to your financial situation.

HDFC Bank offers various loan products meant for customers of different demographics and incomes. Calculating EMI on any of the loans can be done through a few simple clicks at BankBazaar which specializes in providing free financial services to customers and general visitors.

Availing loans can be a very tricky proposition if you don’t know the underlying details such as EMI amounts, interest rates, processing charges and amortization. You may be looking for a car loan, personal loan, or even a house loan, and the best place to begin your search starts from the Internet.

BankBazaar offers a dedicated EMI Calculator tool that will provide you with information regarding the loan break-up and amortization details. You can access this tool by following these steps:

Open BankBazaar.com and scroll to the option titled ‘Financial Tools’ at the top right corner of the web page.
A drop-down menu will appear with two options – EMI Calculator and Finance Calculator. Scroll to the EMI Calculator tag.
Next, you will see three options under the EMI Calculator – Car Loan EMI Calculator, Home Loan EMI Calculator, and Personal Loan EMI Calculator.
Click on the option most relevant to your loan type.

Once you select an option as detailed above, you will be taken to a new page with different dynamic fields. To use the HDFC Loan EMI Calculator, please follow the steps outlined below:

Loan Amount: This field is represented by a scale. Move the pointer by dragging or clicking on the appropriate loan amount you are planning to borrow.
Tenure: This field is again denoted by a scale. Drag the pointer to relevant tenure value that you are planning to repay your loan in.
Interest Rate: Self-explanatory. The interest rate details for various loan products from HDFC Bank can be found at BankBazaar’s dedicated section on HDFC loans. You can also source the interest rate from the official website or by contacting the nearest HDFC Bank branch. This field will have a default value, so please change it before proceeding further.
Processing Fee: This fee varies from product-to-product. Once again, you can find these details at BankBazaar by navigating to HDFC loan pages. This field will also have a pre-defined value – you simply have to change it to the applicable values for your loan product.

Once you are done with filling the details, click on ‘Calculate’. The results will appear just below the ‘Calculate’ button. The results are shown in terms of ‘Your Monthly Car/Home/Personal Loan EMI’, ‘Loan Break-up’ and ‘Amortization Details’.

EMI Amount: The monthly amount you have to repay for your particular loan product, according to the details entered by you.

Loan Break-up: Loan Break-up section will show details such as the loan amount, total interest payable, processing fee, and the total repayable amount. The results are also shown aesthetically in graphical format.

Amortization: This result will show details of the amount to be paid at any point during the loan tenure such as principal paid, interest paid, outstanding balance, and total payment made.

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Your Monthly Loan EMI: 28,670

Your Repayment Details (Yearly/Monthly)

Formula to calculate EMI

Personal Loan EMI

Home Loan EMI

Car Loan EMI

How BankBazaar Personal/Home/Car Loan EMI Calculator Works?

Effect of loan prepayment on your Instalment payments

Factors that can impact your due amount

FAQs on EMI Calculator

Further Reading about EMI Calculator

Calculate your loan Repayment with an Online EMI Calculator

Components of an EMI

Calculating EMIs

What is the formula to Calculate EMI for Loans?

Pre-EMI or Full EMI? Which is a better option?

Pre-EMI

Advantages of Pre-EMIs

Disadvantages of Pre-EMIs

Full EMI

Advantages of Full EMIs

Disadvantages of Full EMIs

Pre EMI or Full EMI? The choice is yours.

How to calculate EMI for your Loans using an Excel?

MICROSOFT EXCEL FOR EMI CALCULATION

STEPS TO CALCULATE LOAN EMIs USING EXCEL

ADJUSTING PAYMENT FREQUENCIES

How To Calculate Your HDFC Loan EMI Using BankBazaar.com's EMI Calculator