EMI Calculator 2024
EMI Calculator
Personal loan is the most popular forms of loans in India as it is unsecured compared to other loans which need collateral. Nearly 75% of the loans availed in India by customers are personal loan.
Individuals who wish to avail such personal loan must be familiar with some concepts associated with personal loan. The foremost of which is EMI, which is the amount that goes towards the repayment of the loan taken
What is a Personal Loan EMI?
A Personal Loan EMI (Equated Monthly Instalment) is the fixed amount that a borrower pays each month as a repayment to the lender over an agreed tenure. It includes both the principal and the interest components.
What is a Personal Loan EMI Calculator?
Calculating the monthly EMI which carries both the principal and interest part can be complex. A Personal EMI calculator helps you to determine the EMI based on the loan amount, tenure, and interest rate. By entering these details, the calculator will provide the EMI that you are obligated to pay towards the loan taken
How Does Personal Loan EMI Calculator Work?
Personal loan calculator uses a formula to compute the EMI. You must input the loan amount, tenure, and the interest rate and the calculator automatically computes the EMI you need to pay. It also provides an amortization chart
Formula for Personal Loan EMI Calculation
The formula for Personal Loan EMI is:
EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
Where,
- P is the principal loan amount,
- r is the monthly interest rate, and
- n is the number of monthly installments.
Example
For a loan amount of ₹5,00,000 at an interest rate of 11.3% for 5 years (60 months), the EMI will be approximately ₹10,996
Benefits of Personal Loan EMI Calculator
- It can be used to calculate the EMI quickly and accurately
- Adds to financial clarity by providing a clear depiction of repayment through amortization chart
- It can be used to compare different EMI
- It facilitates informed decision-making without needing manual calculations
How to Use Personal Loan EMI Calculator?
- Enter the Input amount, tenure, and interest rate
- The EMI calculator will automatically compute the EMI and total interest rate towards the loan.
FAQs for Personal Loan EMI Calculator
1. What information is needed to use the Personal Loan EMI calculator?
You need to input the loan amount, interest rate, and tenure to clearly calculate the EMI
2. Can the EMI amount change during the tenure?
Unless the availed loan is a floating interest loan, the EMI remains constant throughout the tenure
3. How accurate are the results of the EMI calculator?
The calculator provides accurate calculation of EMI. Through this, you can compare different EMIs
4. Does the calculator consider pre-payment options?
No it does not include pre-payment. You need to check with the lender for recalculations related to prepayments for your personal loan
5. Does the calculator display the amortization schedule?
Some calculators also show an amortization schedule, giving a breakdown of the principal and interest components for each EMI.
