Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator: Overview

Bikes or two wheelers are the most preferred mode of transport for many of us in India. People prefer more of two wheelers than a car to deal with the traffic problem which arises out of living in a country which is densely populated. Two wheelers and bikes remain the most convenient way of transport for majority of rural India because of the not so good public transport facility and bad roads. Bikes are a more affordable option to travel on road because of the fuel efficiency. Parts of bike are very easily available and less servicing charges are involved making it an even more convenient option for people. A bike always tops the list of aspirations for most of the young crowd in India. Every middle class Indian prefers to own at least one two wheeler because of less maintenance involved, mileage and its wide reach and ease of accessibility. Almost all the leading banks and financial institutions are offering on the spot two wheeler loans at an attractive rate of interest, thus making it affordable for anyone who wishes to own a bike of their dream.

Best thing about two wheeler loans is insurance and registration that comes along as a package with it many a times. Now that financing is easy, bikes have become a primary choice for most of the rural India. When a thought of availing a loan comes in mind, it’s important to think about all the aspects of loan such as features, interest rates etc. It’s essential to calculate the monthly installments before applying for a loan to know the affordability as well as to choose the best deal available in the market.

Digitization has emerged in every field, making things much more easy day by day. Now, availing a bike loan seems like a cake walk. One can calculate the monthly installments with the loan EMI calculators available online on the official website of loan provider. More importantly, one can compare the loan offered by different loan providers online by using a bike loan EMI calculator available on third party financial websites such as to choose the most suitable option as per their requirement. You can also use the same portal for calculating EMIs.

What is an EMI? How is it Calculated?

EMI or Equated Monthly Installment is the fixed amount a borrower has to pay to the bank or financial institution on a monthly basis till the loan amount is repaid. Principal and interest on that borrowed money are the two elements of this equated monthly installment (EMI). Knowing how much one has to pay towards a loan makes it easy to plan a monthly budget.

How can your EMIs change over the tenure?

Your EMI installments are most likely to remain constant throughout the tenure, however occurrence of the following events may cause the EMI amount to change.

  • Prepayment of Loan amount: Prepaying the loan will result into bringing down the EMI amount. This is so because a decrease in principal amount will reduce the interest rate to be charged thus decreasing the EMI amount. Additional prepayment charges may be applicable in case of few banks.
  • Change of Interest rate:  Two wheeler loans may be sanctioned with either fixed or flexible rate of interest. In case of flexible rates, any change in interest rate will correspond to change in EMI amounts payable.
  • Restructuring of the loan:  In case you wish to reduce your EMI burden, you can request the bank to extend your tenure and for restructuring of your loan. Doing this will decrease the payable EMI amount according to your convenience.

How to Use Two Wheeler Loan EMI Calculator


It is an online tool which lets you calculate the equated monthly installments (EMIs) you will be liable to pay if you take the proposed two-wheeler loan. Your EMIs vary according to these three factors:

Principal Amount (P): It stands for the amount you will be borrowing from the bank or NBFC for the purpose of purchase. This amount may vary according to the vehicle you intend to purchase or the sanction limit.

Rate of Interest (r): This is the interest rate that the lending institution will charge on the amount lent.

Repayment Tenure (n): It refers to the entire duration for which the loan has been granted. The letter (n) stands for the number of months in the repayment tenure or the number of installments.
Your EMI amount is directly proportional to the borrowed amount and rate of interest charged, however it is inversely proportional to the tenure. This means longer tenure corresponds to lower EMIs while higher loan amount and interest rates will correspond to higher EMIs

The amount of payable EMIs can be calculated manually using the formula below:
EMI =P* r* (1+r) n/ (1+r)(n-1)
In today’s world you need not perform these complicated calculations; you can use the TWO wheeler EMI calculators available online to arrive upon the payable EMI amount. The EMI calculator uses the same formula for performing the calculations and therefore you need to enter the amount you are borrowing, the interest rate charged and the tenure in months for computation of EMIs.

With the help of bike loan EMI calculator, one can get the detailed schedule of loan EMI for entire tenure of loan with a clear break up of principal and interest component which is also called loan amortization schedule. Here is how it looks like:

Loan Amortization Schedule

For a bike loan amounting Rs. 50,000 with an interest rate of 15% p.a for tenure of 12 months.

Monthly Loan Amortization Schedule
Month Principal (A) Interest (B) Total Payment (A+B) Balance
1 Rs.3887.92 Rs.625 Rs.4512.92 Rs.46112.08
2 Rs.3936.51 Rs.576.4 Rs.4512.92 Rs.42175.57
3 Rs.3985.72 Rs.527.19 Rs.4512.92 Rs.38189.85
4 Rs.4035.54 Rs.477.37 Rs.4512.92 Rs.34154.31
5 Rs.4085.99 Rs.426.93 Rs.4512.92 Rs.30068.32
6 Rs.4137.06 Rs.375.85 Rs.4512.92 Rs.25931.26
7 Rs.4188.77 Rs.324.14 Rs.4512.92 Rs.21742.48
8 Rs.4241.13 Rs.271.78 Rs.4512.92 Rs.17501.35
9 Rs.4294.15 Rs.218.77 Rs.4512.92 Rs.13207.2
10 Rs.4347.83 Rs.165.09 Rs.4512.92 Rs.8859.37
11 Rs.4402.17 Rs.110.74 Rs.4512.92 Rs.4457.2
12 Rs.4457.2 Rs.55.72 Rs.4512.92 Rs.0

 (This is just an example and does not include any processing fee and charges. Processing fees and other charges along with the interest rate varies across financial institutions.)

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Benefits of Bike Loan EMI Calculator

It’s essential to know the equated monthly installment for the loan amount that you are planning to avail. Research and comparison is the key to get the best possible deal. Know the EMI amount for the various loan providers using the loan EMI calculator. Here are some of the key benefits of using the bike loan EMI calculator:

  • Compare and Shop: Loan EMI calculator is one such tool that eases your process of comparison, before you apply for a specific loan. You can calculate the monthly cost of the bike loan for the different offers from various banks and financial institutions. After comparing the EMI’s, you can go ahead with the best possible loan offer.
  • Know the Monthly Cost of Loan: knowing the possible cost of loan before applying for it helps you set your monthly budget accordingly. Primary advantage of the calculator is that it reduces your work of calculating it manually and saves time.
  • Power of Negotiation: When you know about various bike loan offers from banks using loan EMI calculator, you can further negotiate on the basis of your ground research.
  • Know the Cost of Loan in Splits: By using loan EMI calculator, you can get the detailed schedule splitting the principal and interest amount on the borrowed sum over the repayment tenure, this is usually termed as loan amortization schedule. And the good part is, the wonderful financial tool of EMI calculation is available online for free use.

Some Simple Steps to use Bike Loan EMI Calculator

  • Enter the desired loan amount in  the space provided
  • Choose the tenure according to your preference
  • Input the interest rate offered by the loan provider
  • Click on ‘calculate’ to know the EMI

Use this simple tool to calculate your Bike loan EMI and buying your dream bike can get a lot easier and convenient.

Why you should use a Bike Loan EMI calculator?

  • To be better prepared for debt:  Knowing the exact EMI value you will be liable to pay each month, will help you budget your monthly expenses accordingly and will make you more prepared for handling the burden of debt better.
  • To compare lending options:  In case you are confused about which is the more suitable loan option for your two wheeler purchase and you have more than 2 options, using a two wheeler EMI calculator to compare the costs involved is the best you can do. You can get quotations from various lenders and compare the outcome online using this tool.
  • To decide suitable tenure: It is often difficult to decide which tenure will suit your budgetary requirements and will also make sure that you don’t pay more than required amount as interest.  Finding the right tenure becomes easy with a two wheeler EMI calculator and you can decide whether you wish to bring down the value or take it up depending upon your suitability.
  • To view amortization schedule:  An EMI  calculator provides for a breakup of charges and a table known as amortization schedule which details each periodic payment to be made for the loan. This schedule clearly specifies the share of principal amount and interest amount that goes into calculation for each installment.
  • To negotiate better: You will be able to negotiate better with the bank or the lending institution once you are aware of the basic financials involved. EMI calculator and amortization schedule helps in making you aware about the same thus facilitating easy negotiation.


Advantages of using a Two Wheeler EMI calculator

The one most obvious benefit of using a Two Wheeler EMI calculator is it saves you from the risk of financial distress by making you aware of the EMI amount you will be required to pay at the end of each month as loan repayments. Other than this significant advantage, the other benefits of using a two wheeler EMI calculator are:

  • Error free calculations: By using a two wheeler EMI calculator, you negate the chances of any error creeping in, which might be the case if you choose to perform those calculations manually. In fact in case of multiple banks and multiple calculations, the scale of these errors may be erroneous and can therefore lead to wrong decisions.
  • Easy Access: The best thing about using a two wheeler EMI calculator is, you get to use it and get the results from the comfort of your home. You need not visit the branch or any other place and can access it from the place of your choice.
  • Saves your time and effort: Comparing two-wheeler loan offers from various banks and NBFCs is a tedious task. As it involves multiple calculations, therefore it takes up a lot of time and effort. However, with the help of a two-wheeler EMI calculator you can try a number of combinations of amount, tenure and interest rate without wasting much of your time and with minimum effort.
  • Facilitates better Financial Planning: With the facility to calculate EMIs available online, planning your finances has become really easy. It lets you know the exact EMI amount payable, which helps you plan for your other expenses so that your monthly budget doesn’t take a hit.


How can you use a two wheeler EMI calculator?

To be able to use this EMI calculator efficiently, you need to keep certain information handy such as proposed loan amount, repayment tenure, processing fee and interest rate. Processing Fee should preferably be in percentage.
Like all the EMI calculators, even two wheeler EMI calculators have sliders to freeze the values entered. You need to follow the steps mentioned below to use a two wheeler EMI calculator:

  • Amount: Move the slider with accuracy or enter the exact loan amount you propose to borrow.
  • Tenure: Again move the slider or enter the tenure you wish to opt for. You can either enter the tenure in years or in months. The tool will take the input automatically in number of months for calculation purpose in both the cases.
  • Interest Rate: Move across the slider or enter the interest rate offered per annum. You need to enter the rate of processing fee separately and do not add it with rate of interest offered.

Once you have entered all the three details, the tool will calculate the payable EMI amount for each month. Enter the processing fee if there exists a separate field for it, the tool will then prepare a amortization schedule for the borrowed loan amount. You can try various combinations according to your suitability and scroll the slider for amount and tenure to get an EMI amount which suits your budget.

Other method to calculate EMI
Other than using the specific tool for calculating your loan EMIs, you can also calculate your two wheeler loan EMIs using excel. There is a function in excel namely PMT which can be used for doing this. The formula you need to apply is =PMT (rate,nper,pv)
In this case rate stands for the rate of interest charged, nper stands for number of periods or number of installments i.e. loan tenure in months and pv stands for present value or principal amount borrowed. If you have created an excel sheet of various options and combinations, this formula can be used across rows and columns for calculating EMIs and comparing results thereafter.

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Two Wheeler Loan FAQs

Q. Should we enter the loan repayment tenure in months or in years?
Ans. You can enter the loan tenure in both years and months, depending upon the denomination specified in front of the fields. However for calculation purpose, the number of installments due is concerned and therefore the tenure in months is taken into consideration.  

Q. Are the EMI values given by the calculator and the bank exactly the same?
Ans. The EMI values shown by the calculator will depend upon the inputs i.e. the information entered. The bank EMIs or the actual ones may be slightly different because theloan tenure, the interest rate offered and the amount may vary from what you have entered while using the tool.

Q. What is Amortization schedule?
Ans. Amortization the word refers to repayment of debt and amortization schedule provides a break up of charges and details each periodic payment against the loan. It is very useful for pre-planning your budget.

Q. When should you refer to Amortization schedule?
Ans. In case you are planning to prepay the loan amount or foreclose the loan, referring to amortization schedule will help you calculate the profit margins with ease.

Q.  Can I use a two wheeler EMI calculator for calculating other EMIs?
Ans.  EMI calculator usually takes into consideration these three parameters namely loan amount, interest rate offered and repayment tenure. However there are limitations on prinicipal amount according to the permissible limits of various loans. Hence it is advisable to use specific EMI calculators of calculating loan EMIs of particular loans.

Q. Does using an EMI calculator has any impact on my credit score?
No, using an EMI calculator doesn’t affect your credit score. These enquiries do not matter and are not even registered into your credit report. You can use an EMI calculator as many times as you want without worrying about your credit score.

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