# Loan EMI Calculator tool

This loan calculator will help you determine the monthly payments on a loan. Simply enter the loan amount, term, and interest rate in the fields below and click calculate.

The FreeTinyTools loan calculator helps borrowers calculate amortized loans. These are loans that are paid off in regular installments over time, with fixed payments covering both the principal amount and interest. Our calculator shows you the total cost of a loan, expressed as the annual percentage rate, or APR. Loan calculators can answer questions and help you make good financial decisions.

**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 Loan Calculator Tool?

Monthly Payments | $8,606.64 |

Total Cost of Loan | $103,279.72 |

Total Interest | $3,279.72 |

**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.

## Floating Rate EMI Calculation

We suggest that you calculate floating / variable rate EMI by taking into consideration two opposite scenarios, i.e., optimistic (deflationary) and pessimistic (inflationary) scenario. Loan amount and loan tenure, two components required to calculate the EMI are under your control; i.e., you are going to decide how much loan you have to borrow and how long your loan tenure should be. But interest rate is decided by the banks & HFCs based on rates and policies set by RBI. As a borrower, you should consider the two extreme possibilities of increase and decrease in the rate of interest and calculate your EMI under these two conditions. Such calculation will help you decide how much EMI is affordable, how long your loan tenure should be and how much you should borrow.

**Optimistic (deflationary) scenario**: Assume that the rate of interest comes down by 1% - 3% from the present rate. Consider this situation and calculate your EMI. In this situation, your EMI will come down or you may opt to shorten the loan tenure. Ex: If you avail home loan to purchase a house as an investment, then optimistic scenario enables you to compare this with other investment opportunities.

**Pessimistic (inflationary) scenario**: In the same way, assume that the rate of interest is hiked by 1% - 3%. Is it possible for you to continue to pay the EMI without much struggle? Even a 2% increase in rate of interest can result in significant rise in your monthly payment for the entire loan tenure.

Such calculation helps you to plan for such future possibilities. When you take a loan, you are making a financial commitment for next few months, years or decades. So consider the best as well as worst cases...and be ready for both. In short, hope for the best but be prepared for the worst!