How to use EMI Calculator Online

"Use our online EMI calculator to estimate your monthly payments and check loan eligibility. Get accurate results with our EMI loan calculator online."


4 mins read

Published: 21 August 2023

Updated: 20 September 2023

EMI Calculator online is the tool that helps the borrower to calculate the EMI for the loan. This is a beneficial tool that can help in making a loan a financially wiser decision. A borrower just needs to input the loan amount, interest rate, and tenure, and the screen with the details of all the EMIs will be displayed. The loan EMI Calculator can help people in budgeting their loans and can help in making loans a planned decision.

Before jumping into the EMI Calculator Online, let us ponder on the point of what is an EMI. EMI, or Equated Monthly Installment, is a fixed, regular payment made by a borrower to a lender to repay a loan. It consists of both principal and interest components and is spread over a predetermined period, typically monthly.

EMIs are common in various types of loans, including home loans, car loans, and personal loans. The principal portion of the EMI reduces the outstanding loan balance, while the interest component covers the cost of borrowing. As the loan matures, the proportion of the EMI dedicated to principal repayment gradually increases. EMIs simplify loan repayment by breaking it into manageable monthly portions, making it easier for borrowers to budget their finances. EMI calculator eligibility depends on the agreed terms and conditions that the borrower has signed.

Fixed Interest rate EMI VS Floating interest rate EMI

EMIs (Equated Monthly Installments) behave differently in the context of floating and fixed interest rates, impacting borrowers in distinct ways:

1. Fixed Interest Rate EMIs:

With a fixed-rate loan, the interest rate remains constant throughout the loan tenure. This means your EMI also remains unchanged over the loan's duration. Here's how it affects borrowers:

  • Certainty and Predictability: Fixed-rate EMIs provide a high degree of predictability and financial stability. Borrowers know precisely how much they need to pay each month, making budgeting easier.
  • Protection from Interest Rate Fluctuations: Fixed-rate loans shield borrowers from rising interest rates in the market. If interest rates increase, your EMI remains the same, allowing you to avoid higher payments.
  • Potentially Higher Initial Costs: Initially, fixed-rate EMIs might be higher compared to floating-rate EMIs when market interest rates are low. This can lead to higher borrowing costs over the loan's life.
  • Limited Benefit in Falling Rate Scenario:If market interest rates decrease, you'll miss out on the potential savings that borrowers with floating-rate loans might enjoy. Your fixed-rate EMI remains unchanged.

2. Floating Interest Rate EMIs:

In contrast, floating-rate loans have variable interest rates that can change periodically based on market conditions. This dynamic interest rate structure affects borrowers in the following ways:

  • Initial Cost Advantage: Floating-rate EMIs are often lower initially when market interest rates are low. This can lead to lower initial borrowing costs.
  • Risk of Rate Fluctuations: The primary drawback is the uncertainty. If market interest rates rise, your EMI will increase, potentially straining your budget.
  • Potential Savings in Falling Rate Scenario: If market rates decrease, borrowers with floating-rate loans may benefit from lower EMIs and overall reduced borrowing costs. However, this depends on the terms and conditions of your loan agreement, including rate reset intervals and caps.
  • Risk Management: Some floating-rate loans come with interest rate caps, which limit how much your rate and EMI can increase during a specified period. This can provide some protection against sudden rate spikes.

Loan EMI Calculator

Using an EMI (Equated Monthly Installment) calculator online is a straightforward process. These tools are available on various financial websites and apps and can help you determine your monthly loan or mortgage payments. Here's a step-by-step guide on how to use one:

1. Access an EMI Calculator:

  • Open a web browser and visit a reputable financial website or use a dedicated financial app.
  • Look for the EMI calculator tool, It's often located in the "Loan" or "EMI Calculator" section.

2. Enter Loan Details:

  • Enter the principal loan amount: This is the total amount you're borrowing.
  • Input the interest rate: Specify the annual interest rate offered by the lender. Ensure it's in the correct format (usually in percentage).
  • Set the loan tenure: Choose the number of months or years over which you'll repay the loan.

3. Select the Calculation Method:

Some EMI calculators may provide different calculation methods, such as reducing balance or flat rate. Choose the one that matches your loan agreement. Reducing balance is the most common method.

4. Calculate EMI:

After entering the required details, click or tap the "Calculate" button. The EMI calculator will process the information and display your monthly EMI amount.

5. View Detailed Results:

Along with the EMI amount, the calculator may provide additional information such as the total interest payable over the loan tenure and the total amount to be repaid.

6. Optional Advanced Features:

Some EMI calculators offer advanced features, such as the ability to factor in prepayments or part payments. If you have plans to make such payments, use these features to see how they impact your loan.

7. Print or Save Results:

If needed, you can print or save the results for future reference or to share with your lender.

8. Experiment with Scenarios:

Online Loan EMI calculators are useful for exploring different loan scenarios. You can adjust the principal, interest rate, and tenure to see how changes affect your monthly EMI.

9. Compare Lenders:

EMI calculators also allow you to compare loan offers from different lenders. Input the terms offered by various lenders to determine which one provides the most favorable EMI.

Process of Calculating the EMI Loan Calculator Online

  1. Visit the Website My Mudra or click on the link
  2. Search for the EMI Calculator and click on it.
    Enter the essential information including your interest rate, loan tenure, and loan amount.
  3. Click on Submit.
  4. All the details of EMI shall be displayed on your screen.


Using an online EMI calculator is an efficient way to estimate your monthly loan payments and gain insights into your borrowing costs. It's a valuable tool for financial planning and making informed decisions when taking out loans or mortgages. Make loans a planned decision rather than a burden on your shoulders. Be it any loan, personal loan, business loan, home loan, or any other financial aid it is essential to calculate the EMI for it.


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