How this calculator works
The monthly rate is the nominal annual rate divided by 12. Equal payments are due at each month end and interest is charged on the remaining balance. Enter a tenure containing a whole number of months. The table keeps full precision internally; actual lenders may round each payment and adjust the final instalment. The entered principal is the amount borrowed after any cash down payment. Upfront costs are excluded.
Formula
i = annual rate/12. EMI = P x i/[1 - (1 + i)^(-months)]. At zero interest, EMI = P/months. Interest = EMI x months - P.
Worked example
An INR 60,000 bike loan repaid over 12 months at 0% needs INR 5,000 monthly. A two-month INR 1,000 loan at 12% needs INR 507.5124 monthly.
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Frequently asked questions
Should I enter the bike price?
Enter the financed principal after the down payment, adding any fees actually financed by the lender.
Does insurance belong in the loan amount?
Include insurance only if it is financed. Cash paid separately does not create loan principal.
Is this a flat-rate quote?
No. Interest is calculated on the remaining principal. A dealer flat-rate quote needs conversion before comparison.