An EMI calculator is an excellent tool to help find out the monthly instalment amount and the total interest paid on loan. There are EMI calculators for different types of loans:
• Car loans
• Credit card loans
• Personal loans
• Home loans
• Two-wheeler loans
EMI or equated monthly instalment is a sum that comprises of both interest payment for outstanding principal and principal repayment. The EMI amount remains the same for the entire loan duration unless the borrower opts for schemes that restructure the EMI amount based on the tenure.
The easiest way to find out the EMI for your loan is to use a loan EMI calculator. A loan EMI calculator will help you find out the monthly instalment amount and help you plan your budget. Most calculators allow you to adjust all the variables, which enables you to arrive at the EMI amount for different combinations of principal, interest, and loan tenure.
An EMI calculator requires three inputs:
• Principal amount
• Rate of interest
• Loan repayment tenure
For some types of loans such as two-wheeler loans or car loans that are dependent on the value of the item purchased, the EMI calculator also requires additional details, for example, the brand or model of the car/two-wheeler, the cost etc. In such calculators, the principal
The loan EMI calculator uses a formula to arrive at the EMI amount:
P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]
Where:
P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of the loan in years
How to use an EMI calculator:
1. Input the three details: principal amount, the rate of interest, loan repayment tenure
2. If you're applying for consumer durable loan or a vehicle purchase loan, input details such as the company and the model number along with the showroom cost of the product.
3. Press calculate
4. The EMI calculator will give you the monthly EMI. Some calculators also provide a breakup of the EMI into principal repayment and interest payment. This helps you calculate the total interest paid throughout the loan tenure.
For some types of loans, there is a loan eligibility calculator. This calculates your eligibility based on your loan requirements as well as your income. Based on your eligibility, the calculator fixes a principal and calculates the EMI. Using such calculators helps you find out the amount of loan you can avail as well as the fixed monthly commitment. Planning better for your loan can help you get the right loan from the right lender.
• Car loans
• Credit card loans
• Personal loans
• Home loans
• Two-wheeler loans
EMI or equated monthly instalment is a sum that comprises of both interest payment for outstanding principal and principal repayment. The EMI amount remains the same for the entire loan duration unless the borrower opts for schemes that restructure the EMI amount based on the tenure.
The easiest way to find out the EMI for your loan is to use a loan EMI calculator. A loan EMI calculator will help you find out the monthly instalment amount and help you plan your budget. Most calculators allow you to adjust all the variables, which enables you to arrive at the EMI amount for different combinations of principal, interest, and loan tenure.
An EMI calculator requires three inputs:
• Principal amount
• Rate of interest
• Loan repayment tenure
For some types of loans such as two-wheeler loans or car loans that are dependent on the value of the item purchased, the EMI calculator also requires additional details, for example, the brand or model of the car/two-wheeler, the cost etc. In such calculators, the principal
The loan EMI calculator uses a formula to arrive at the EMI amount:
P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]
Where:
P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of the loan in years
How to use an EMI calculator:
1. Input the three details: principal amount, the rate of interest, loan repayment tenure
2. If you're applying for consumer durable loan or a vehicle purchase loan, input details such as the company and the model number along with the showroom cost of the product.
3. Press calculate
4. The EMI calculator will give you the monthly EMI. Some calculators also provide a breakup of the EMI into principal repayment and interest payment. This helps you calculate the total interest paid throughout the loan tenure.
For some types of loans, there is a loan eligibility calculator. This calculates your eligibility based on your loan requirements as well as your income. Based on your eligibility, the calculator fixes a principal and calculates the EMI. Using such calculators helps you find out the amount of loan you can avail as well as the fixed monthly commitment. Planning better for your loan can help you get the right loan from the right lender.
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