Table of Contents
🧠 Introduction
Whether you’re planning to buy a car, house, or take a personal loan — understanding your EMI (Equated Monthly Installment) is essential. EMI is the monthly amount you pay to repay your loan over time.
In this guide, we’ll show you how to calculate loan EMI manually using a formula and also how to calculate it instantly using a free online EMI calculator from FreeToolsWale.
📘 What Is EMI?
EMI (Equated Monthly Installment) is the fixed amount you pay every month towards repaying your loan. It includes both:
- Principal Amount – The actual money borrowed
- Interest Amount – The lender’s charge for giving the loan
✍️ How to Calculate Loan EMI Manually
To calculate EMI manually, you need this standard formula:
EMI Formula:
EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1]Where:
- P = Principal Loan Amount
- R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
- N = Loan Tenure (in months)
📌 Example – Manual EMI Calculation
Let’s say you borrow ₹5,00,000 at an annual interest rate of 12% for 5 years.
- P = ₹5,00,000
- R = 12% ÷ 12 ÷ 100 = 0.01
- N = 5 × 12 = 60 months
Now plug into the formula:
EMI = [500000 × 0.01 × (1 + 0.01)^60] / [(1 + 0.01)^60 – 1]Calculate:
- (1 + 0.01)^60 ≈ 1.816
- EMI ≈ ₹11,122 (approx)
📌 Result: You’ll pay ₹11,122 per month for 60 months.
⚡ How to Calculate EMI Instantly Using FreeToolsWale
Manual calculation is time-consuming and error-prone. For fast and accurate results, use an online EMI calculator like the one on FreeToolsWale.
✅ Steps to Use the FreeToolsWale EMI Calculator:
- Go to: https://freetoolswale.com/loan-emi-calculator/
- Enter:
- Loan Amount (e.g. ₹5,00,000)
- Interest Rate (e.g. 12%)
- Loan Tenure (e.g. 60 months or 5 years)
- Click Calculate EMI
- Instantly see:
- Monthly EMI
- Total Interest Payable
- Total Amount Payable
💡 Why Use an EMI Calculator?
| Feature | Benefit |
|---|---|
| 🔢 Instant Results | No need to calculate manually |
| 🧮 Accurate Calculations | Auto-uses the EMI formula |
| 📱 Mobile-Friendly | Use from any device |
| 💸 Compare Loans | Try different interest rates and durations |
🔗 Related Free Financial Tools
- 🔗 Profit and Loss Calculator
- 🔗 Income Tax Calculator
- 🔗 GST Calculator
- 🔗 Interest Calculator
- 🔗 Percentage Calculator
❓ FAQs
Q1. Is manual EMI calculation still useful?
Yes, especially for learning how EMI is derived and for exams.
Q2. Is the EMI calculator accurate?
Yes, it uses the same formula used by banks and NBFCs.
Q3. Can I use it for car or home loans?
Yes! The EMI calculator works for all types of loans.
✅ Conclusion
Now you know how to calculate loan EMI manually and online. If you enjoy crunching numbers, use the formula. But for faster, easier, and error-free results, use the FreeToolsWale Loan EMI Calculator.
Bookmark it for all your loan planning needs!