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# EMI Calculator

Loan amount
Rate of interest (p.a)
%
Loan tenure
Yr
 Monthly EMI ₹ Principal amount ₹ Total interest ₹ Total amount ₹
Principal amount
Interest amount

The credit market in India is steadily on the rise. It is currently the 4th largest credit industry in the world, recording a CAGR of over 11% year on year. A vast majority of these advances are short-term credits such as personal loans and credit cards. Combined, these two financial products account for 78% of all credit lending in India. Loan repayments include EMIs and borrowers should consider the EMI amount to accurately plan their current and future finances.

There are several EMI calculators available online; one must choose an accurate EMI calculator and learn its usage to calculate the exact EMI amount they are liable to pay for a loan.

## Factors Affecting Your Due Amount

There are certain factors you need to consider while planning for applying for a loan. Based upon your financial and repayment capacity, you will be required to calculate equated monthly installments (EMI). Here are a few factors to consider-

• Term of the Loan

A loan’s tenure may get reduced or extended. Subsequently, there will be an increase or a decrease in the EMI amount as well. Thus, considering the term of a loan is also an important factor that may affect your due amount.

• Rate of Interest

The rate of interest is a vital factor that will help to assess the installment amount owed. You can compare the product and opt for one which has a lower rate of interest so that your overall repayment stays low.

• Amount of Loan

Choosing the loan amount is another significant factor for determining your EMI. Based on the loan amount you choose, your equated monthly installment will be calculated accordingly.

The number of credit accounts is growing at an even higher CAGR of 28% and has reached 107 million accounts at the end of FY18.

Regardless of the type of loan you want to avail of, be it a secured or unsecured advance, it is paramount that you know how much monthly instalment you have to make before you avail it. That is where an EMI calculator in India can be immensely helpful.

• It helps you get an accurate estimate of your EMI amount so that you can plan your finances accordingly. Make sure that your debt-to-income ratio is below 50% to maximize your chances of loan approval.
• A loan EMI calculator helps you save valuable time. You don’t have to do complex calculations manually, which can be quite time-consuming.
• It eliminates any chance of a miscalculation, providing you with an accurate estimate every time.
• It is highly specific for each type of loan. The EMI breakup of a home loan, for example, is different from that of a personal loan.

## The formula to determine loan EMI amount

There is a specific formula that Groww uses to compute the EMI amount for a loan.

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

• P is the principal amount
• R is the rate of interest
• N is the loan tenure

This is the standardized formula used by any online loan calculator. Some variables may be added based on the type of loan.

## Types Of EMI Calculator

There are numerous types of EMI Calculators that you can use on Groww to calculate your equated monthly installments for home loans, personal loans, car loans, etc.

### Home Loan EMI Calculator

Home loans usually have a huge loan principal amount and a long tenure. It requires strategic planning for its repayment. You can use the Home Loan EMI Calculator of Groww to calculate your EMI. It is a user-friendly designed calculator that can help you calculate and assess your home loan EMIs immediately. All you need to do is enter your loan amount, loan tenure, and rate of interest and the results will be calculated instantly.

### Car Loan EMI Calculator

Buying a car is one of the major investments one can make. You may require a car loan to fund this substantial investment. Often, a car loan’s EMI is supposed is to be repaid with due interest within a stipulated time to the lender. On failure, your car may be taken away and put up for auction to recover the balance amount left to be paid. Thus, to calculate a precise EMI amount that you can afford to pay comfortably, you can use the Car Loan EMI Calculator of Groww. You just need to enter your loan amount, interest rate, and loan tenure, and you will get the monthly EMI amount instantly.

### Personal Loan EMI Calculator

Personal loans are mostly taken to serve multiple purposes like medical emergency, vacation, relocation, wedding, home renovation, etc. Since they are an unsecured loan, they have a relatively higher interest rate and a shorter tenure. You can use the Personal Loan EMI Calculator of Groww to assess the loan and EMI amount that you can pay with ease. By entering your loan amount, rate of interest, and loan tenure, you can calculate your EMI.

### Education Loan EMI Calculator

Affording good education in recent times has been quite a task for parents as its cost has risen at a rapid pace. To finance this cost, an education loan is one of the best options a parent can opt for. Such loans can be taken for a student’s education within the country or even overseas. The loan’s EMI is required to be repaid with interest after a moratorium period. By entering the loan amount, rate of interest, and loan tenure in the Education Loan EMI Calculator, you can calculate the sum of the EMI amount which you need to repay.

### Loan against Property EMI Calculator

A loan against property is a type of secured loan that one can avail against a property owned by them. Be it residential, commercial, or land, any property can be mortgaged with the lender against a loan. For calculating the EMI amount which you can repay without any financial strain, you can use a Loan against Property EMI Calculator.

## How to use Groww online EMI calculator?

The Groww online calculator is easy-to-use and takes just a few seconds of your time. Here’s how.

• Insert the variable vis-à-vis principal, tenure and rate of interest.
• The calculated EMI value will be displayed immediately.

## Advantages of using Groww calculator

• It is entirely free of charge. Anyone can use it at any time, as many times as they want.
• Our loan calculator online is 100% accurate every time.
•  It’s fast and provides an accurate estimate instantaneously.

Apart from the loan EMI calculator, Groww also offers other calculators as you can see below. All of them are free to use and you can use them as many times as you want.

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• What sort of loans can I use the EMI calculator for?

You can use this online EMI calculator for all types of loans including personal loans, business loans, and car loans. All you need to know is the interest rate payable on the principal amount and the tenure.

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

To avail of a loan, your debt-to-income ratio should not be more than 50%. Otherwise, the lending institution will be led to believe that you may not have the wherewithal to repay the loan.

• What does an EMI consist of?

An Equated Monthly Instalment represents a part of your principal amount and interest payable. It has to be paid until the tenure ends. Alternatively, you can settle the debt with a one-time payment.

• What happens if I fail to pay my EMIs?

Financial institutions levy heavy penalties on unpaid EMIs. If you miss an EMI, you may have to pay extra in the future.