Two Wheeler Loan EMI Calculator

What is a Two Wheeler Loan Calculator?

A two-wheeler loan calculator is an online tool that estimates your monthly payments (EMIs), total interest, and overall cost of a two-wheeler loan.

Here is how it can help you:

1. Helps Avoid Loan Default: With careful selection of a manageable EMI amount that aligns with your monthly budget and financial capabilities, you can make timely repayments. This practice not only helps you avoid defaults but also plays an important role in maintaining a good credit score.
2. Accurate EMI Calculation: This calculator can offer users a quick and precise estimate of EMI, calculated based on various factors such as the total loan amount, applicable interest rate, and the period for which the loan is availed.
3. Easy Loan Comparison: By adjusting the loan amount you want to borrow, the applicable interest rate offered by lenders, and the duration of the loan tenure, you can effectively compare different loan options from various lenders to find the most affordable one.
4. Helps in Budgeting: Understanding your monthly payment helps you manage your money better and ensures you can repay the loan without stretching your budget.
5. Saves Time & Avoid Manual Errors: The calculator simplifies calculations that can often be time-consuming and prone to human error.

How Does a Two-Wheeler Loan Calculator Work?

Below is a step-by-step guide to how a vehicle-loan calculator works;

1. Enter the Loan Amount: This is the total cost of the vehicle minus any down payment
2. Select the interest rate charged by the lender: Get the annual interest rate and convert it into a monthly rate.
3. Choose the loan tenure: The number of months you will repay the loan.

Pocketful’s Two Wheeler Loan Calculator applies the formula and instantly displays monthly EMI, Total Interest payable and Total Amount payable.

Below is the formula to calculate the EMI;

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

P	Loan Amount
R	Monthly Interest Rate
N	Loan Tenure (in months)

Example of Two-Wheeler Loan Calculator

Suppose you take an ₹5,00,000 loan at 8% annual interest for 5 years (12 * 5 = 60 months).

P = ₹5,00,000
Annual Interest Rate = 8% , Or 0.667% monthly
N = 60 months

Now, EMI = [₹5,00,000 * 0.0067 * (1.00667)^60] / [1.00667^60 -1]
= INR 10,138.20

Total Interest Payable = (EMI * Number of Months) – Loan Amount
= (10,138.2 * 60 ) – 5,00,000
= ₹1,08,292

Total Amount = Loan Amount + Total Interest
= 5,00,000 + 1,08,292
= ₹6,08,292

How to Use Pocketful Two-Wheeler Loan Calculator?

The step-by-step guide for using Pocketful’s Two-Wheeler loan calculator is as follows;

Step 1:

Input the loan amount you plan to borrow.
For example: ₹1,00,000

Step 2:

Adjust the rate of interest by using the slider.
For example: 12% p.a.

Step 3:

Choose the loan tenure in months by using the slider or dropdown.
For example: 26 months

Step 4:

Choose the loan tenure in months by using the slider or dropdown.
For example: 26 months

• Monthly EMI: ₹4,387
• Loan Amount: ₹1,00,000
• Total Interest Payable: ₹14,059
• Total Amount: ₹1,14,059

Benefits of Using the Two-Wheeler Loan Calculator

Some of the key benefits of using a two-wheeler loan calculator are as follows;

1. Instant & Accurate EMI Calculation: The calculator gives quick and accurate EMI amounts, making it easy to track and analyze your repayment obligations.
2. Completely Hassle Free: Pocketful’s Two Wheeler loan calculator is free and easy to use, making it a helpful tool for financial planning.
3. Helps Maintain a Good Credit Score: Choosing an affordable EMI amount lowers the risk of missing payments, which helps maintain a good credit score.