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**EMI Calculator – Calculate Your Loan EMI Online**

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 borrower 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.

**How can an online EMI calculator help you?**

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, be it a secured or unsecured advance, it is paramount that you know how much monthly installment you have to make before you avail it. That is where an **EMI calculator 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 your valuable time. You don’t have to do the 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 home loan, for example, is different from that of 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.

**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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**Frequently Asked Questions (FAQ)**

**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 a loan?**

To avail 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.

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