How to Calculate EMI for Bike Loan? By Using Formula or Tool


Bike loans make it a lot easier to own a bike of your choice if you are short of funds and cannot make the entire down payment in one go. There are several banks and private lenders who offer bike loans at affordable interest rates and low-cost Equated Monthly Installments (EMIs). The documentation is simple and loan sanctioning is fast and hassle-free if your documents are in order and you meet the eligibility criteria.

Before you take a Two Wheeler Loan it is important to do an online comparison by visiting websites of several lenders and check out the rate of interest being offered. It is equally important to calculate the EMI on the loan you are availing so that there are no surprises later on and you can manage your finances effectively without hurting your monthly budget.

Using the Bike EMI Calculator

Bike EMI Calculator is an effective tool which helps in determining the actual amount you need to pay every month in the form of Equated Monthly Installments (EMIs) once you purchase a bike on loan. Almost every lender’s website has a bike EMI calculator which is user-friendly and can be used to calculate the EMIs. It helps you to get a clear picture about how much amount you would be shelling out every month so that you don’t over commit and manage your finances better. If you are not tech savvy then the other option would be to visit the dealer showroom and ask the finance guy to let you know the down payment and calculate the EMI as per your budget.

The mathematical formula for calculating EMIs is:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

  • Here P stands for the loan amount or principal,
  • R is the interest rate per month [if the interest rate per annum is 09%, then the rate of interest will be 09/(12 x 100)]
  • N is the number of monthly installments.

Benefits of Using the Calculator:

By using the Bike EMI Calculator you don’t have to go through the trouble of manual calculation and don’t need to remember the formula as the calculator will do the exact calculations for you. The calculator displays the result without asking for personal details. Input different variables to check the loan and the tenure which suits your requirements depending upon your financial capability. Once you open the Bike EMI Calculator on the lenders’ website, all you need to do is input the capital amount, rate of interest and tenor in months. The EMI calculator will then display the EMI based on these parameters. You can also modify the model, the loan amount and the tenure to suit your exact requirements.

The bike EMI calculator:

  • Gives a detailed breakup of the total payable amount and loan payoff period based on the loan amount.
  • Is one of the easiest ways to calculate bike loan EMIs with a click of a button.
  • Does not take into account any government taxes or additional charges levied by the lender which may apply to monthly repayments.

Calculating the EMI before committing to the bike loan helps you to determine your monthly obligation to the lender. As soon as you enter the down payment, loan period and interest rate, the bike EMI calculator will give you the EMI. An installment in EMI calculator is calculated on reducing the balance. Processing fee or other applicable charges are not part of the EMI you calculate. The down payment depends upon the type of vehicle, eligibility criteria, and your credit score and it varies from lender to lender.