How We Can Calculate Two Wheeler Loan EMI

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How We Can Calculate Two Wheeler Loan EMI

In India, a majority of people prefer commuting every day on a two-wheeler. From bikes to scooters, two-wheelers have adapted to suit the present needs of the people. They are not only easy on the road but also come equipped with the latest features that make driving an enjoyable experience rather than a fuss. 

Among the growing trend of owning and riding a two-wheeler, the prices of these vehicles have also been increasing. Here, banks and other financial institutions offer financial aid in terms of a loan to buy a two-wheeler easily. You only have to pay monthly instalments to the institution to own a dream vehicle. If you are wondering about how to calculate the amount, you can use a Bike EMI Calculator for it.   

How is EMI for a two-wheeler loan calculated:

The EMI or Equated Monthly Instalments of a two-wheeler loan is the repayment amount that is based on:

1.      Loan amount:

The amount the borrower takes to the financial institution for a bike or scooter is included in the monthly instalment. The total principal amount is divided into parts that can be paid back each month. It is usually denoted as P for the principal amount.

2.      Rate of Interest:

The lender charges interest on the total principal amount taken by the borrower. It is a percentage that can majorly affect your EMI for two-wheelers. This rate is relatively constant, but the bank can charge higher interest as well depending upon the loan application. The rate of interest can depend on the credit score of the borrower, employment, age, and existing liabilities as well. It is denoted by R for the rate of interest.

3.      Duration of Loan:

It is the number of months or even years through which the loan must be paid back entirely. The number of years can be expressed as N.   

Manual Calculation of EMI:

For any two-wheeler loan, you can manually calculate the EMI that you will have to pay with an easy manual method:

EMI = [P × R × (1+R)^N] / [(1=R)^N-1]

This method can help you easily find the amount you have to pay back to the bank or institution each month if you take a Bike Loan.

Two-wheeler Loan Calculator For You:

If you are facing trouble using the manual method and the calculations that come with it, you can get the amount using a two-wheeler loan EMI calculator. It makes the task of calculating monthly instalments that you have to repay to a bank, NBFC, or other financial institution very easy and quick. All you have to do is simply enter the details about the loan into the tool, and it will provide you with the exact amount that needs to be repaid. You need to put in the loan amount, rate of interest as well as the loan tenure in the EMI calculator. The results will be quick, accurate, and reliable. You can also use the calculator anywhere, at any device, and at any time.   


Owing their favourite vehicle is a dream for most people, although budget constraints often make it challenging to fulfil this dream. Here, a bank loan can help such people buy a two-wheeler they want without affecting their budget significantly. If you are planning to invest in your dream two-wheeler, whether it is a bike or scooter, but don’t have the sufficient amount, you can take a bank loan and repay it in equal monthly instalments. Use an EMI calculator today to find out the accurate amount you will have to pay to the bank on your two-wheeler loan. 

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Alfred Williams, a distinguished business writer, navigates the corporate landscape with finesse. His articles offer invaluable insights into the dynamic world of business. Alfred's expertise shines, providing readers with a trustworthy guide through the complexities of modern commerce.