When you consider borrowing a home loan, car loan, business loan, or any other loan, assuming the EMI for the repayment is essential. Different banks have different interest rates and calculations for the monthly EMI payment. If you are planning to get a loan from a bank or any credit society, you must first use the **EMI calculator** that can help you know how much monthly installment you will need to pay.

**What is EMI?**

EMI, also called as Equated Monthly Instalment is a monthly payment you will need to make to the lender as a part of loan you undertook for a certain period. The tenure of the repayment depends on the amount you took and the ability to repay.

## EMI Calculator

**What is EMI Calculator?**

EMI calculator is an online tool which will help you know the total EMI payment you will need to pay every month. You just need to enter the details and it will provide you with the estimated monthly payment and assists you in deciding whether you can afford that ideal purchase.

**Different Types of EMI Loan Calculator**

EMI calculators are available in different forms. The aim is to offer a clear projection of the installment you must repay. It will further help you make informed decisions. Some of the EMI calculator types are-

**Personal Loan EMI calculator**– Personal loans are intended to cover unforeseen costs such as travel, medical expenses, or home renovations. Use this calculator to determine the monthly installment of your loan.**Home Loan EMI Calculator:**Many people aspire to own a home, and home loans enable them to do so. Use the home loan EMI calculator to know how much monthly payment you need to complete the loan repayment.**Auto Loan EMI Calculator:**Banks provide auto loans when you’re ready to purchase a vehicle. You borrow the balance after making a down payment. The vehicle loan EMI calculator assists in calculating your monthly installment depending on loan length and interest rates.**Education EMI Calculator:**Higher education loans are made possible as education expenses rise. Usually, there is a grace period before repayment begins. Use this calculator to determine your student loan EMI.

**How can an online EMI Loan Calculator help you?**

Irrespective of the type of loan you are borrowing, you need to have a clear idea about how much you will need to repay with interest every month. The EMI loan calculator will help you in different ways, including-

- You are getting a precise estimate of your
**EMI amount**. It will help you to know the amount you will have to keep aside. - It removes the possibility of calculating errors and gives you a precise estimate each time.
- It is quite particular to each kind of loan. For instance, a home loan’s EMI breakdown differs from a personal loan.

**What is the formula for calculating EMI?**

The EMI calculator uses the formula-

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

**Conclusion**

The EMI loan calculator is the best online tool and is entirely free. After repaying the **EMI**, you can manage your monthly expenses and plan your wealth building accordingly.

**FAQs – EMI Calculator**

**1. How do I use an EMI calculator to find loans that meet my needs?**

**Ans.** Since every bank has a different interest rate, you can compare loans offered by multiple banks using the EMI loan calculator. You can choose the loan that best fits your needs financially and has the lowest monthly installment.

**2. What does an EMI consist of?**

**Ans.** EMI consists of your principal and interest payments. You must pay the EMI before the principal and interest rates are completed. Alternatively, you can pay off the amount at once.

**3. Are EMI calculators the same for all types of loans?**

**Ans.** At the primary level, all EMI calculators are the same. However, there are EMI calculators for different types of loans.

**4. What if I am unable to pay one month of EMI?**

**Ans.** There can be heavy penalties for the failure of EMI payment. So, it is better to pay your EMI on time.

**5. Is CIBIL necessary for a loan?**

**Ans.** A good CIBIL score is essential for a loan. It serves as a database of borrowers’ credit histories.

**6. Is the EMI fixed throughout loan tenure?**

**Ans.** The borrower must pay a certain amount every month until the loan tenure is finished. The EMI is fixed for the duration of the loan.