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How to Use Two Wheeler Loan Calculator to Calculate EMI


When taking out a bike loan, several factors need to be consideredYou not only need to decide which bike you want to buy; analyse the features it has to offer, but you also need to make sure that you can afford it. If you can’t afford to pay the entire amount to buy a bike, you can always consider taking a bike loan for it.

What is a bike loan/two-wheeler loan?

A bike loan/two-wheeler loan provides you with money that would cover the entire on-road price of the bike. That is the price you pay to bring the bike from the showroom where you bought the bike to the road. It includes prices like registration, road tax, insurance, showroom price and other optional charges.

Most banks also offer the option to buy a bike loan. They even provide pre-approved bike loans to existing customers based on their relationship with the bank. When purchasing a bike loan, you have to pay the lender equated monthly instalments (EMIs) on the amount borrowed. At first, the EMIs consist mainly of the interest amount and then later it is focussed on paying back the principal. 

Bike Loan EMI Calculator

A bike loan EMI calculator is a web-based tool that instantly calculates the EMI value for the two-wheeler loan you wish to borrow. Most banks and lenders offer this tool on their websites. It helps calculate the amount payable towards settling the loan that you borrowed.

You should enter the necessary information, and the online calculator gives you the result instantly. You will need to enter the loan amount – this is the amount that you borrowed from the lender. You also need to enter your interest rate. The rate that the lender charges you for the loan is a percentage of the amount you borrowed. You finally have to enter the loan term. That is the number of years for which you have borrowed the loan. Once you enter all the details, the calculator will display the results immediately. Thus, a two-wheeler loan EMI calculator does the work of calculating the EMI and lets you know how much you need to pay as equated monthly instalments and the total amount of interest payable. 

Additional Read: 8 Things to Keep in Mind While Opting for a Pre-Used Car Loan

How to Calculate Two Wheeler Loan EMI

Let us see a step-by-step guide of using the Bike Loan EMI Calculator:

1)    Open the tool on the website by clicking the calculator option

2)    Manually enter the loan amount in the box, or you can drag your cursor along the blue line that reads “loan amount”. You can enter any value between ₹0 to ₹50 lakhs.

3)    Manually enter the interest rate in the box or drag the cursor along the blue line that says “interest rate.”

4)    Manually enter the loan term (in number of years) or drag the cursor along the blue line that reads “loan term (years).”

5)    Click on calculate, the answer will be displayed in a few seconds.

You can enter different amounts and get the answer for other EMIs you have to pay. That will help you decide on the part of the loan you want, the interest rate you are willing to pay, and the number of years you can take the loan.

Additional Read: How Can a Personal Loan be Used to Fund Your Education

Bike Loan Calculator Table

Let us look at an example for a bike loan calculation. Let us assume that you meet a lender willing to give you a bike loan at an interest rate of 10.8% per annum. Here is a list of possibilities for what your loan and amortisation schedule will look like.

Loan amount (Rs.)

Interest rate

EMI for 1 year (Rs.)

EMI for 2 year (Rs.)

EMI for 3 year (Rs.)

EMI for 4 year (Rs.)

EMI for 5 year (Rs.)




































Advantages of Using Two Wheeler Loan Calculator

  • Two-wheeler loan calculators are easy to use, and most of the time, they are free. 
  • It can help you calculate the exact value of your EMI amounts so that you can choose a plan that works best for you. 
  • You can compare loans from different banks and tenures to determine which plan suits your financial situation the best. 
  • Calculating the EMIs in advance can help you plan your budget. 


The free-to-use online bike loan EMI calculator saves you the hassle of calculating the EMI value by hand. The tool is hassle-free and accurate, which can help you plan your finances better. Using an online bike loan EMI calculator, you can get your hands on your favourite bike without having to shell out too much money at once. It makes it a comfortable way to plan your purchase and have the bike of your dreams. 


   1. How is EMI calculated for a two-wheeler?

A bike loan or a two-wheeler loan’s EMI includes all the expenses related to purchasing a bike. This consists of the cost of the bike, registration price, road tax, insurance and any other charges that the showroom may levy. When calculating the EMI for your bike loan, the total amount, the interest rate charged and tenure will be used to compute the EMI. The entire EMI amount will initially be interest rate-heavy and gradually include a higher portion of the principal amount as time increases. 

   2. What is the formula to calculate bike loan EMI?

Calculation of EMI on a bike loan can be done using a simple formula, which is as follows: 

EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]

In this formula, P stands for the principal or the loan amount, R is the interest rate on the loan per annum, and N is the tenure of the loan in monthly terms. 

Instead of using the formula to calculate the bike loan EMI yourself, which can be time-consuming, you can use online bike loan EMI calculators to find the exact EMI amounts. They are free, easy to use and will give you accurate results that will help you make your decision faster. 

   3. What is the principal amount of a bike loan?

The principal amount of a bike loan refers to the amount of loan you want to take to purchase your bike. You can take a loan for the entire bike on-road price, including its cost, registration fees, road tax, insurance and any other charges that may be applicable.  

   4. How can I buy a bike on EMI?

If you have a bike that you want to buy in mind, check the bike's price first. Then, approach a bank of your choice and check your eligibility. Once you know the eligibility of the bike, calculate the EMI requirements so that you know what your monthly expense will be. You can use an online EMI calculator to compute the same. After arriving at the loan amount, you can afford and choose the tenure and apply for a bank bike loan. You can also apply for bike loans online. You will be required to submit certain documents for proof of income. Once you have submitted all the requirements and the verification is done, the bank will grant your loan. 


ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Investment in securities market are subject to market risks, read all the related documents carefully before investing. We are distributors of loan products, Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. ICICI Securities Ltd. acts as a referral agent to various banks for various loan facilities and is subject to fulfilment of eligibility criteria, terms and conditions etc. All disputes with respect to the distribution / referral activity would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

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