An EMI Calculator is a simple online calculator to check how much you have to pay every month in case of a loan. It applies such information as a loan amount, interest rate, and loan period to indicate your payment plan to you. It does not matter whether you need a home loan, a car loan, a personal loan or an education loan, with the EMI Calculator, figuring out how much to pay is simple without fancy mathematical calculations, and you can make intelligent decisions when borrowing.
An EMI calculator is very useful to do instant calculations of your loan repayment and make your loan procedure transparent. It will automatically calcualte your principal and interest constituent and this saves you the time to do it manually and avoid your calculation error but also gives you a better choice to do your finances better.
The EMI Calculator’s formula is based on reducing balance interest calculations, as given below:
EMI = [P * r * (1 + r)^n]
[(1 + r)^n – 1]
Where,
n = Loan tenure in months
EMI = Equated Monthly Instalment
P = Loan principal amount
r = Monthly interest rate (annual interest rate divided by 12)
You can easily figure out your personal loan EMI by following these simple steps.
Start by entering the Loan Amount – that’s the sum you wish to borrow.
Next, specify the Repayment Tenure – how many months you’ll take to pay it back.
Then, apply the Interest Rate – this is the rate that will be charged on your loan.
Finally, check out the EMI Breakdown – this will give you a clear view of your monthly installment details.