Formula for EMI Calculation

The formula used to calculate the equated monthly installment (EMI) that you must pay to the lender for your loan is as follows:

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

Where:

Personal Loan Equated Monthly Installment (EMI)

Suppose you have entered the following details into the 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 Payable Amount

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

Breakdown of EMI 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 calculation above is based on the assumption that no prepayments are made, and the loan was obtained in June 2020.

Home Loan EMI

Suppose you have entered the following details into the 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 Payable Amount

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

Breakdown of EMI 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 calculation above is based on the assumption that no prepayments are being made, and the loan was taken in June 2020.

Car Loan EMI 

Suppose you have input the following details into the 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 Payable Amount

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

Breakdown of EMI for a Home 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 calculation above is based on the assumption that no prepayments are being made, and the loan was taken in June 2020.

How the CredBharat Personal/Home/Car Loan EMI Calculator Works?

The CredBharat Equated Monthly Installment (EMI) Calculator is user-friendly and straightforward to use. It requires some basic information about the loan you intend to avail. To use the calculator, follow these steps:

The CredBharat EMI Calculator will then process the information and display your 'Monthly Loan EMI' amount. Additionally, it will present a detailed amortization table for the loan, including the actual loan amount, total interest due, and processing fee calculations.

Impact of Loan Prepayment on Your Monthly Installments

If you happen to come into additional funds, you might choose to make a loan prepayment, which involves paying an extra amount towards the principal loan amount. In such cases, you can calculate your revised EMIs by accounting for the prepayment amount. This calculation will help you determine the amount of interest savings achieved by reducing the outstanding principal balance, as interest is calculated based on the principal outstanding.

Depending on the prepayment amount and the loan provider's terms and conditions, you may be subject to an additional fee or charge for making the prepayment.

Factors Influencing Your Total Due Amount

When considering a loan for your financial needs, it's essential to calculate the equated monthly installments (EMIs) that align with your repayment capacity. To determine this, you should take into account several factors that can be adjusted to suit your loan requirements and repayment capabilities:

Carefully considering these factors allows you to tailor your loan to your specific financial situation and repayment capacity.

Emi Calculator FAQ's

In most cases, these loan calculators can be the same, as they operate based on a standard set of information, including the loan amount, prepayments, tenure, interest rates, and processing fees. However, certain calculators may have restrictions on the loan amount based on the type of loan.
Regarding the EMI, assuming the bank approves the amount and tenure, the exact installment you need to pay may vary slightly. Differences can arise from variations in interest rates and processing fees compared to what you used in your calculations.
If you fail to make an EMI payment on time, the bank will typically charge a penalty fee. Additionally, late or missed payments can negatively affect your credit score.
For business and home loans, banks may offer floating interest rates, meaning your loan installment can change with fluctuations in the interest rate. Some banks may allow you to keep the EMI constant while extending the loan tenure, or you can reduce the EMI and maintain the tenure.
Pre-closing a loan before its tenure ends can potentially have a negative effect on your credit score. Timely payments can help improve your credit score. Consider making partial prepayments to reduce the loan tenure and save on interest charges, rather than pre-closing the entire loan. Keep in mind that banks may charge a prepayment penalty fee.
Failure to pay your EMI can result in late payment fees or penalties charged by most lenders. These additional charges can increase your overall debt and the cost of repaying the loan. Furthermore, missed EMI payments can negatively impact your credit score, making it harder to obtain credit in the future. In severe cases of non-payment, the lender may take legal action to recover the amount, potentially leading to asset seizure or salary garnishment.
EMI calculators provide precise monthly installment amounts based on your loan amount, interest rate, and loan term. This accuracy helps you budget effectively and ensure you can comfortably meet your repayment obligations. EMI calculators also allow you to assess how changes in interest rates would affect your monthly payments, aiding in informed decision-making when selecting loan products or negotiating interest rates. They are easy to use and deliver quick results, enabling you to evaluate various scenarios and make informed choices without complex calculations.
If both the bank and the calculator use the same loan parameters and formulae, the EMI calculated by the bank should align with the calculator's result. While some online calculators may provide more decimal places, banks may round off the EMI to the nearest whole number or a specific decimal point, resulting in minor variations.
Yes, paying EMI on time is crucial as it can positively impact your credit score and financial credibility.
The formula to calculate EMI is EMI = [P x R x (1+R)^N] / [(1+R)^(N-1)].

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