Calculate EMI on your Two Wheeler Loan

|
20K
|
1.80L
|
3.40L
|
5L
%
|
1
|
3
|
5
|
7
|
9
|
11
|
13
|
15
YR
|
1
|
2
|
3
|
4
|
5
|
0
|
20K
|
40K
Principal Loan Amount (P)
(Loan Amount After DP)
₹ 1,00,000
1 Lakhs
Total Interest (I)
₹ 12,396
12 Thousand 3 Hundred
Total Payment (P + I)
₹ 1,12,396
1 Lakhs 12 Thousand
₹ 3,122
3 Thousand 1 Hundred

Growth Chart of Balance, Principal and Interest

Growth Chart of Balance, Principal and Interest

Period
Principal
Interest
Total Payment
Balance
Loan Paid to Date
2025
15,100
3,633
18,733
84,900
15.10 %
2026
32,007
5,459
37,465
52,894
47.11 %
2027
34,577
2,888
37,465
18,316
81.68 %
2028
18,316
416.25
18,733
0
100 %

What is EMI?

Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.

How to calculate Monthly EMI?

Here is the formula to calculate Monthly EMI:

EMI Formula
Where,
A stands for Monthly EMI
P stands for Principal Loan Amount
R stands for Rate of Interest
n stands for Loan Duration (in months)

For example, if you borrow ₹10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = ₹10,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 - 1) = ₹13,493. i.e., you will have to pay ₹13,493 for 120 months to repay the entire loan amount. The total amount payable will be ₹13,493 * 120 = ₹16,19,220 that includes ₹6,19,220 as interest toward the loan.

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