Bike EMI Calculator – Need to Know About These Calculating Tools
Bike EMI Calculator – Know About These Calculating Tools

Bike EMI Calculator – Know About These Calculating Tools

Bike purchases in India have been simplified with the easy availability of two wheeler loans against simple eligibility requirements. You need to fulfil only a handful of criteria related to your age, income, city of residence, and such aspects to be eligible to avail the funding. Further, the documents required are minimal too, keeping paperwork simplified.

What’s more, the secured nature of these advances keeps the interest rates in check as well, making financing of bike purchase significantly affordable. Nevertheless, individual affordability of these loan remain a concern as long as you have not checked whether your selected loan value is easy to repay or not. A bike EMI calculator assists with an elaborate assessment of the affordability aspect of these loans for individuals.

These financial tools are designed to calculate critical values that contribute to effortless assessment of your loan suitability. Further, they can prove crucial in helping you repay your loan conveniently and with cost-effectiveness. Let’s find out in detail what these tools comprise for a better understanding.

What is a Bike Loan EMI Calculator?

A bike EMI calculator is a self-help financial tool that primarily helps compute the instalments payable on your two wheeler loan. It is a free tool available on the websites of reputed lenders and is designed for self-help use. The calculator is a good tool to use as it provides near accurate results as per the entries made and is quick to calculate as well, eliminating all chances of manual errors and delays. Thus, if you have not made any elaborate analysis of your two wheeler loan borrowing decision, this financial tool can prove quite handy.

It comes with a simple user interface that is easy to understand and does not require much skill to use. Thus, you may use the calculating tool conveniently to assess your borrowing suitabiliy.

What Does a Bike EMI Calculator Compute?

The primary reason why a bike EMI calculator is in much use is because it helps compute the EMIs payable easily in a few simple steps only. However, the financial tool computes so much more than just the instalments payable towards your bike loan repayment. Some prominent bike loan EMI calculators in the market compute the following results.

  • The EMIs payable towards bike loan repayment
  • Total interest payable for the loan throughout the tenor
  • Total loan liability payable, including the principal and interest components
  • Amortization schedule, comprising the loan outstanding after each year of tenure completion and the principal-interest break-up of each EMI payable

Along with these, some best calculators available in the market also depict the principal and interest percentage of your loan as a part of the total loan liability payable. You may use all these results to determine whether and how much borrowing turns out affordable for you both in the short and the long term.

How Does an EMI Calculator Work?

A bike EMI calculator is designed to work based on a preset formula that computes the results based on the entries made. The presence of a set formula makes the results accurate. Commonly, the following formula is used to compute bike loan EMIs with the calculator.

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

In this formula, P represents the loan principal or the amount you seek to avail. R stands for the rate of interest as the lending institution levies, and N refers to time expressed in number of months for the total years selected. So, if you choose to repay the loan in 5 years, N would be count as 60, i.e., 5 times 12.

Based on this formula, the financial tool computes the bike loan EMIs and pertinent repayment values that one must be aware of when borrowing the advance.

How to Best Use a Bike Loan EMI Calculator?

Although a bike EMI calculator simplistically computes the EMIs payable. The scope for assessing your borrowing decision remains to be explore based on the entries you make. Here’s how you can make the most of your bike loan EMI calculator when computing the instalments for your two wheeler loan.

  1. Check your EMI suitability with the first loan amount and tenure entries, and see if you need any affordability adjustments.
  2. To make your loan EMIs affordable, you can either reduce the loan amount or extend the tenure.
  3. Alternatively, if your income accommodates a higher EMI than calculated. You can make the reassessment by reducing the tenure selected. In case a higher financing value is needed. You can also extend the loan amount to the point that keeps the EMIs suitable.
  4. In doing so, it is crucial to understand that the change in loan amount is directly proportionate to the EMIs payable as well as the total interest payable.
  5. The changes in your tenure selected, however, impact the two differently. While, a change in tenure proportionately changes the total interest payable, it has an inverse relation with the EMIs payable. It means that an increase in the tenure will bring down the EMIs. And a tenure reduction would mean higher EMI liability.
  6. When selecting the tenure suitably, you must know that the right tenure decision would be. The one that keeps the EMIs low without pushing up the total interest payable significantly. Thus optimising the repayment requirements.
  7. The amortisation schedule can be a great tool to determine your repayment style. Enabling you to make suitable and well-timed prepayment decisions. So that you maximise the savings on your interest payable.


All these factors and features combine to make a bike EMI calculator a great financial tool. To be used before making your borrowing decisions. You can also use another self-help tool available easily. Known as the bike loan eligibility calculator. To check how much you should apply for based on your borrowing profile to get easy approval for your loan. Accordingly, choose a loan amount and a suitable tenure.Keep all documents ready before applying to streamline. The entire processing of your loan application for easy verification and approval.

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