To access the old website
Click Here
What is EMI?
EMI refers to the fixed amount you pay monthly towards your loan i.e. Principal amount as well as interest. By entering the desired loan amount, loan term, and applicable interest rate (available on our website or by contacting us directly), the calculator generates an accurate estimate of your EMI. This empowers you to:
- Budget effectively: Assess how comfortably the estimated EMI fits into your overall financial plan and existing commitments.
- Compare loan options: Explore different scenarios by adjusting loan amounts and terms to find the combination that best suits your budget and repayment preferences.
- Make informed decisions: Gain valuable insights into your potential loan obligations before proceeding, allowing you to make confident and informed financial choices.
Planning a significant financial undertaking — like a loan requires careful budgeting and understanding your monthly obligations. This is where Axis Bank's online EMI calculator becomes a valuable tool for you. While the calculator provides accurate estimates based on the information you input, it's important to remember that actual interest rates and terms may vary depending on your specific circumstances.
EMI Calculation Formula: How to Calculate Your Monthly Installments
While the EMI calculator simplifies monthly loan estimates, knowing the underlying formula offers valuable insight. Here's the simplified formula:
EMI = [P x R x (1 + R)^N] / [(1 + R)^N - 1]
Where:
P = Principal loan amount
R = Monthly interest rate (annual rate divided by 12)
N = Loan tenure in months
Remember, this formula serves as a foundational understanding. Always use a reliable EMI calculator.
How to use the EMI Calculator?
Financial clarity empowers optimal decision-making. This is where the EMI calculator becomes a valuable tool for you. Tools such as EMI Calculator Excel and Business Loan EMI Calculator, offered by reputable institutions like Axis Bank, simplify the process of estimating your monthly loan repayments. These calculators provide a user-friendly interface to analyse various repayment scenarios, allowing you to make informed decisions about your financial commitments.
Using the EMI Calculator
- Identify your loan type: Select the appropriate calculator based on your desired loan (personal, car, bike, home or business).
- Enter the loan amount: Specify the total sum you intend to borrow.
- Outline the loan term: Indicate the desired duration of your repayment period (typically in months or years).
- Provide the interest rate: This crucial factor determines the cost of your loan. You can find this information on the chosen institution's website or by contacting them directly.
Instantly, the calculator reveals your estimated EMI.
Types Of EMI Calculator
- Home Loan EMI Calculator:This loan calculator provides a clear picture of your monthly Home Loan payments by considering loan specifics, including the loan amount, term, interest rate, and processing fees.
- Personal Loan EMI Calculator: This easy-to-use loan and EMI Calculator helps you figure out how much you will have to pay each month towards a Personal Loan taken for various purposes, such as travel, medical-related expenses or debt repayments.
- Car Loan EMI Calculator: This Loan EMI calculator helps you estimate your monthly EMI based on the loan amount, tenure, and interest rate. It provides a simple breakdown of your repayment schedule.
- Education Loan EMI Calculator: Designed to help you estimate your Education Loan repayments, this loan and EMI Calculator helps you plan your education finances with confidence and focus on achieving your academic goals without worrying about the financial burden.
- Loan Against Property EMI Calculator: This monthly EMI calculator takes the guesswork out of EMI and interest calculations, giving you a clear picture of what your monthly payments will look like based on loan-related details, such as the amount, property value, interest rate and term.
Factors that can impact your due amount
Three crucial factors directly influence the decision to take out a loan:
- Rate of interest (ROI): This is the cost of borrowing the money, expressed as a percentage of the loan amount. It's like a rent paid to the lender for using their funds. Naturally, a higher ROI leads to a higher EMI and overall due amount.
- Loan amount: This refers to the total sum you borrow. It's logical that a larger loan amount directly translates to a higher EMI and due amount. Consider it like purchasing a more expensive car; the monthly installments will be higher compared to a less expensive model.
- Term of the loan: This is the duration in which you have to repay the loan. Using an Axis Bank EMI calculator, for example, allows you to conveniently assess different loan terms, enabling you to make informed decisions. Spreading the repayment over a longer period results in lower EMIs but ultimately extends the interest accrual period, potentially increasing the total due amount.
Advantages of using an EMI Calculator
- Informed budgeting: Gain clear insight into how comfortably the estimated EMI aligns with your existing financial commitments.
- Comparative analysis: Explore various loan scenarios by adjusting loan amounts, terms, and interest rates to identify the option that best suits your needs.
- Confident decision-making: Acquire a valuable preliminary understanding of potential loan obligations, enabling you to proceed with informed financial choices.
Disclaimer
Axis Bank does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User's own risk. User should exercise due care and caution (including if necessary, obtaining of advise of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. Axis Bank does not undertake any liability or responsibility to update any data. No claim (whether in contract, tort (including negligence) or otherwise) shall arise out of or in connection with the services against Axis Bank. Neither Axis Bank nor any of its agents or licensors or group companies shall be liable to user/ any third party, for any direct, indirect, incidental, special or consequential loss or damages (including, without limitation for loss of profit, business opportunity or loss of goodwill) whatsoever, whether in contract, tort, misrepresentation or otherwise arising from the use of these tools/ information contained / data generated herein.
Frequently Asked Questions
Your EMI is determined by a formula considering three factors: the loan amount, the interest rate, and the loan term. Essentially, it calculates the fixed amount you will pay monthly to cover the loan principal and interest over the chosen duration.
Your EMI due date is mentioned in your loan agreement and can usually be found on your monthly statements. Most lenders offer convenient payment options like online banking, mobile banking, Debit/Credit Card payments, or direct debit mandates. Remember, timely payments are crucial for maintaining a good credit score.
This depends on your loan agreement. For a decrease in interest, your EMI typically stays the same, allowing you to pay off the loan faster. However, an increase might lead to a higher EMI or an extended loan term to maintain your original payment. Consult your lender for specific details.
Partial prepayment offers multiple advantages. You can choose to reduce your EMI, shorten the loan term (saving on interest), or both. It demonstrates responsible financial management and can improve your credit score. Additionally, it reduces your overall debt burden and potentially frees up cash flow. However, check for any prepayment charges in your loan agreement.
A loan calculator is an extremely helpful tool when you consider taking out a loan. It shows you exactly how much you will be paying every month and how long it will take to pay off the loan. This clarity facilitates informed financial planning, empowering you to make smart decisions about your money.
There are five different types of EMI Calculators in India, including the Home Loan EMI Calculator, Personal Loan EMI Calculator, Car Loan EMI Calculator, Education Loan EMI Calculator and the Loan against Property EMI Calculator.
Missing an EMI can have serious consequences, so it's crucial to avoid it if possible. Potential consequences include late payment fees, credit score damage, and legal action.
While the core principle of EMI calculation remains the same for different loan types (home, car, personal), dedicated calculators offer distinct advantages such as tailored considerations, updated interest rates and informed decision-making.
Learning Hub
Look through our knowledge section for helpful blogs and articles.
Copyright@ 2025 Axis Bank