EMI Calculator for Home Loan, Personal Loan, Education Loan and Car Loan
The credit market in all over the world is steadily on the rise. This online EMI Calculator helps you to calculate your monthly EMI installments. This application can be used to calculate Personal Loan EMI, Home Loan EMI, Education Loan EMI, and Car Loan EMI
It is one of the best EMI Calculator available online which can help you to manage your finance if you are planning to apply for a personal Loan. While playing around this tool, you can figure out the best EMI plan for your needs.
What is an EMI?
EMI stands for "Equated Monthly Installments". It it the amount that the borrower has to pay equally every month throughout the tenure of the loan such that the loan balance at the end of the tenure of the loan becomes zero. Also assuming, that the borrower wouldn't make any prepayments during the course of the loan.
So, how is this EMI amount arrived at?
There is a slightly complex mathematical formula involved in the calculation of EMI amount. The formula to calculate EMI is given below:
EMI = [P x R x (1 + R)^ N ] / [(1 + R)^N - 1]
*P stands for the loan amount or principle amount
*R is the rate of interest per month. If the interest rate per annum is 10%, then the rate of interest per month will be 10% divided by 12 = (10 / 100) / 12
*N is the number of monthly installments.
The above formula gives you the amount which needs to be paid equally every month so that your loan gets over at the end of the tenure of the loan. (Assuming you wouldn't make any prepayments during the course of the loan.
Let's understand with an example - Your loan amount is 25,00,000, rate of interest applied is 10% and tenure of the loan is 10 years. So,
*P = 25,000,00
*R = Rate of interest per month = (Annual Interest ) divided by 12
= (10/100) divided by 12
*N = 120 months (In the formula N is the number of months. So, 10 years mean 120 months)
Applying the above formula, your EMI will cost 33,038 / month.
How can an EMI Calculator helps you in planning your Finance?
This online EMI Calculator calculates the exact amount that needs to be paid by you to the lender. A longer tenure (maximum duration) helps you in reducing the EMI amount. It can do complex calculations within a few seconds, and helps you make a quick decision about the LOAN. The calculations are totally accurate and trustworthy. It is important to use an EMI calculator before applying for a LOAN, this way you will be in a better position to understand your debt repayments without missing your EMIs payment which could lead to a poor credit score. You can experiment with the calculator by using different amount, tenure period, prepayment amount (if any).