EMI Calculator makes it relatively easy for people to calculate the EMI payment towards their loans. It is a tool that assists in calculating the loan amount that has to be paid every month. It allows an individual to choose the appropriate amount to borrow while keeping their finances stable.
EMI Calculator functions on a formula devised to compute EMIs. This formula estimates the data entered by an individual and generates results based on the input. To calculate the EMI accurately, you'll be required to provide details like the loan tenure, the loan amount, processing fee, interest rate, etc. The accuracy of the results of the EMI calculator depends on the data provided. So, if you're entering the comparative data on the calculator, the degree of accuracy of the result would be less.
For instance, the advancements in technology and the accelerated growth of the use of four-wheelers is growing. An increasing number of people across India aim to buy cars, but buying a car isn't an easy task, considering the high prices of cars. Due to this, people tend to buy cars by taking a loan. A large number of website assist people in calculating EMI which gives people an approximation of cost involved in buying a car they like.
How are EMIs Computed?
EMIs are calculated by using a basic mathematical formula:
Here, E is the EMI that you owe on the loan that you have taken, P stands for the Principal Amount, R stands for the rate of interest applicable on loan and n stands for the tenure of the loan.
EMI Calculator functions in a simple way. You are required to enter the details linked with your loans and then click on "Calculate" to find out the results.
How Can I Use the EMI Calculator?
Calculate the EMI
If you wish to pay your loan in advance, you can hint the tool by simply selecting Yes/No from the options in the 'Prepayments' section. If you choose 'Yes,' the information linked to the prepayment amount will have to be provided. If you do not wish to pay your loan in advance, then you can select No, and the EMI Calculator will be conventionally calculating the EMI.
EMI Calculator can calculate the amount of EMI for different tenures and different interest rates. You can calculate different combinations of interest rates and loan amounts in the EMI calculator to find out the loan amount that suits you the best. By using the EMI loan calculator, you can compare the options available and choose the best-suited loan amount for you.
You can also make the EMI calculations by using Microsoft Excel. You can use the following function to calculate your EMI by using the function below:
The 'rate' is the rate of interest applicable on loan, 'nper' is the number of installments and 'pv' is the principal amount.
How to Use an EMI Calculator?
The tool is relatively easy to use. You'll be required to enter the details linked with your loan, and the EMI Calculator will generate the results. In some websites, you can also see the amortization table to understand the repayment information better.
Parameters for EMI Calculation
The three main parameters that determine the EMI are:
- Principal amount
- Rate of interest
The principal amount is the amount of money that is sanctioned to the borrower by the lender. When the principal amount is high, the EMI associated with the loan is also high.
Tenure is the period taken for loan repayment. The monthly installments calculate the amount that must be paid every month until the tenure is completed. When the tenure is long, the EMIs paid are smaller.
The rate of interest is the interest rate applicable to the loan amount. The interest rate charged differs from person to person. If an individual has a good credit score, then they can get a loan at a desirable interest rate. However, if a person has a bad credit history, then they will be paying a higher interest rate on the principal amount.
Other factors which affect the EMI on s are a change in the base rates, change in market rates, prepayment and pre-closure, inflation/deflation in the economy, etc
Payment Structure on EMI Calculator
It is essential to get an idea of EMI payments before applying for the loan. EMIs are the fixed amounts that must be paid by the borrower on a monthly basis, and they have two major components; the principal amount and the interest amount. The total interest applicable on a particular loan is spread over the tenure of the loan. Usually, a significant part of EMI is taken up by the interest amount.
Types of EMI Calculators
Car Loan EMI Calculator
Car Loan EMI Calculator functions on a formula devised to compute EMIs. This formula estimates the data entered by an individual and generates results based on the input. To calculate the EMI accurately, you'll be required to provide details like the loan tenure, the loan amount, processing fee, interest rate, etc. The accuracy of the results of the EMI calculator depends on the data provided. So, if you're entering the comparative data on the calculator, the degree of accuracy of the result would be less.
Two Wheeler Loan EMI Calculator
Before choosing a particular lender, it's eminent to understand the product to make sure we select the most suitable terms. With the advent of online banking; making fiscal decisions has not only become easier, but also it has become extraordinarily lucid and straightforward. For the heightened convenience of customers, leading insurance providers, banks and third-party financial websites extend a dynamic tool on their portal known as the loan EMI calculator. The tool available on this website offers extensive assistance concerning the financial aspects involved in two-wheeler loan.
Education Loan EMI Calculator
The EMI Calculator is an online tool that helps to calculate the EMIs of Education Loans. While the traditional means of estimating the EMI on loans is deemed as tedious and time-consuming; using an online tool which calculates the EMI on education loans is a lot easier.
Personal Loan EMI Calculator
A personal loan is generally an unsecured loan that people borrow in times where they need money for the shorter duration to meet some unforeseen expenses. As people require the money urgently they do not evaluate the decision to take the personal loan and go for the bank that gives them the personal loan the fastest or the first bank they spoke to. However, the principles of lending apply to personal loan as well and you can end up saving up a lot of money by choosing your loan wisely.
When you choose your loan it is important for you to focus on the interest and tenure of the loan. The cheaper interest rate you can get for your personal loan the better it is for you. Input all the offers of interest rates in the personal loan EMI calculator and see how much money you save for each option.
Home Loan EMI Calculator
Home loan is one of the leading products offered by banks and NBFCs to customers. Home loan is also the largest selling banking product and it ensures the longest banking relationship with the lender. Owning a home is generally an obvious as well as a major decision in a person's life. However, the cost of constructing a building or purchasing a property is quite high and this is where home loans play a major, almost indispensable role for the majority of home buyers.