In the ever-evolving world of personal finance, making informed decisions regarding loans and their repayment is very important. Whether you’re planning to buy a new car, a dream home, or fund your child’s education, understanding the financial implications of equated monthly instalments (EMIs) is crucial. Fortunately, with the ever-evolving digital age, we have many powerful tools like the online EMI calculator to simplify the borrowing process. This versatile and user-friendly tool has revolutionised the way we approach loans and repayments. Here, we will explore how an online EMI calculator can empower you with financial knowledge, helping you make perfect choices and manage your expenses more effectively.
What is an EMI calculator?
An EMI Calculator is a digital financial tool that is important in managing personal finances. It enables individuals to determine the exact monthly payments they need to make towards the personal loan. To calculate the EMIs, this user-friendly online calculator considers the principal loan amount, the interest rate, and the loan tenure. Providing instant and accurate EMI values empowers borrowers to plan their finances effectively, helping them assess their repayment capacity and make informed decisions. An EMI calculator simplifies complex financial calculations, making it an indispensable resource for anyone planning to get a personal loan.
How Does a Personal Loan EMI Calculator Help?
A Personal Loan EMI Calculator is a valuable financial tool that offers many benefits to borrowers. Below are some of the ways the EMI calculator can help borrowers:
Easy to Use
EMI calculators are user-friendly. You just have to enter the loan amount, interest rate, and tenure, and it easily computes your Equated Monthly Instalment (EMI). There’s no need for complex mathematical calculations.
Time-Saving
In just a matter of a few seconds, you can get accurate EMIs. This efficient tool eliminates the need for manual calculations, saving you valuable time in the loan application process.
Easy Comparison of Personal Loan Plans
With a personal loan EMI calculator, you can effortlessly compare different loan options and their associated EMIs. This enables you to make an informed decision and select a plan that suits your financial circumstances.
Accurate Results
The calculator provides precise EMI values, leaving no room for error. It ensures that you have a clear understanding of your financial commitments.
Simplifies Loan Planning
By breaking down the loan repayment into manageable monthly instalments, the calculator simplifies the process of planning your finances. It helps you budget effectively and ensures that you can meet your EMI obligations without straining your resources.
How is EMI on Loans Calculated?
The formula for EMI Calculation is –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
P = Principal Loan Amount
N = Loan Tenure in Months
R = Monthly Interest Rate
(The rate of Interest {R} on your loan is calculated per month)
R = Annual rate of Interest /12/100
For Example, if the Rate of Interest is 6% p.a. Then r= 6/12/100 = 0.005
So if a person avails a loan of Rs. 5,00,000 at an annual interest rate of 6.5% for a tenure of 5 years, then the EMI will be calculated as,
EMI = 5,00,000 x 0.005 x (1+0.005) 59.99 / ((1+0.005)59.99-1) = 2,542.38
The total amount payable will be 2542.38 x 59.99 = 152,517.37, and the interest amount will be = 12709.78
Calculating the EMI manually through a formula can be tedious.
LoanTap’s EMI calculator can help you calculate your loan EMI with ease.
Conclusion
The online EMI calculator is a powerful tool in your financial journey, offering various advantages that provide a lot of convenience by providing instant and accurate EMIs. It equips you with the essential knowledge needed to make informed decisions about personal loans and their repayment. This versatile tool simplifies complex mathematical calculations, making it accessible to individuals of all financial backgrounds. Whether you’re a first-time borrower or an experienced financial planner, the EMI calculator eases the budgeting process, ensuring that you can comfortably meet your monthly obligations.
Moreover, it allows for effortless comparison of various loan options, empowering you to select the most suitable plan that aligns with your unique financial goals. In a fast-paced world, time-saving benefits are not to be underestimated, as the calculator swiftly delivers the necessary information. LoanTap Personal Loan EMI calculator provides accurate calculations so that you can make the correct financial decisions.
