Two Wheeler Loan EMI Calculator

Calculate the monthly instalment on a bike or scooter loan, including high-rate dealership finance.

Your monthly EMI
₹4,014
3 yr · 12.5% p.a.
Principal amount₹1,20,000
Total interest₹24,520
Total payable₹1,44,520

About the Two Wheeler Loan EMI Calculator

Two wheeler loans are small-ticket and short-tenure, which means the headline rate matters less than the processing fee and any bundled insurance. Rates range from around 10% at banks to over 20% through dealership tie-ups.

Because the amounts are small, the difference between a 2-year and a 3-year tenure is usually a few hundred rupees a month — take the shorter one.

The formula

EMI = [P × R × (1+R)^N] ÷ [(1+R)^N − 1]
PLoan principal — the amount actually disbursed to you
RMonthly interest rate — the annual rate ÷ 12 ÷ 100
NTenure in months

Every bank and NBFC in India uses this reducing-balance formula. Interest is charged only on the outstanding balance, so the interest share of each EMI falls as the loan runs down while the principal share rises.

Things worth knowing

1
Ask for the total payable, not the monthly figure — dealers quote the EMI to make expensive loans look small.
2
Bundled insurance and accessories are often financed at the same high rate. Pay for them separately if you can.

Frequently asked questions

Typically 10–20% of the on-road price, though 100% finance schemes appear during festival seasons — usually at a higher rate.

Not for salaried applicants with a stable income. Lenders may ask for one where the applicant has no credit history at all.

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