Loans have become an important part of someone’s life. The loan can be available for various purposes, but the key components of loans are always the same: loan amount, loan tenure, and interest rates.
A loan is a financial agreement between two parties- one is the lender and the borrower. Usually, people take loans from banks and then pay the installment amount also known as EMI. Under the agreement, the lender usually gives a specific amount of money that the borrower wants, which has to be paid back with interest as a monthly installment over some time. EMIs are calculated and confirmed to the borrower. However, before taking the loan, borrowers must know how much loan is needed, what will be the EMI every month, and if it is feasible for them. To do so, they can either seek advice from finance professionals or calculate using an EMI calculator. An EMI Calculator is the easiest way to determine the monthly pay outs and balance as per your budget.
What is a Loan EMI Calculator?
The full form of EMI is equated with a monthly installment comma. EMI is beneficial as you can pay the borrowed amount back in parts and reduces the financial pressure on the borders. It consists of the principal amount along with the accrued interest. It needs to be paid on a specific day of the month as suggested by the lender.
To better understand the loan with interest, the borrower needs to enter the principal amount tenure and the interest rate to fetch EMI results. You can use the calculator to calculate your monthly loan and EMI payouts. Calculating EMI is the easiest way to know your instalment within seconds. It is available 24/7 for free.
How is EMI Calculated?
Loan amount, interest rate, and tenure are the key parameters of the loan, which vary in the case of different loan providers. EMI applicable to loans varies according to all these three parameters. Therefore before choosing a particular loan, it is essential to understand these three parameters and how they relate to your EMI. There are three ways to calculate your EMI:
Calculate EMI using Excel
You can calculate EMI by using excel. In Excel, you use the function PMT for calculating EMI. The formula that calculates your EMI in excel is PMT (rate, per, PV). Calculating the EMI by the formula is quite tricky.
Rate=Interest rate of the long
NPER= Total Number of Payments for the Loan
EMI Calculator is another way to find EMI for the particular value of the amount you might take for your loan in the future. It is the easiest and simplest method for calculating your EMI. You have to enter your principal amount, interest rate, and period to know your EMI amount.
Calculating EMI by the formula is quite typical, but you can still calculate it using this formula.
The formula stands for:
R=Rate of Interest
Using this formula, you can calculate the correct EMI that will be payable.
Type of EMI Calculator
EMI Calculator can be of various types depending upon the loan you choose. Hence you can easily calculate the different launch EMI using an online EMI calculator.
Home Loan EMI Calculator
Taking a home loan requires a lot of planning and research, especially when taking it for a long tenure. And that is when an online EMI Calculator helps you calculate your EMI appropriately. A home loan EMI calculator is used to calculate the EMI that you pay for your home loan. The individual can calculate their home loan conveniently with it. Home loans are sanctioned on the property cost and borrower payment capacity. They are disbursed for a maximum of 30 years. The bank will tell you the eligibility criteria.
Loan Against Property EMI Calculator
A loan against properties is a secure loan provided against the property owned by you, whether residential or commercial. Using an EMI calculator to calculate the EMI for the loan will help you with the EMI details. It helps you understand that you are not exceeding your repaying capacity and end up straining your finances.
EMI Calculator works accurately providing you with precise results. While you may be wondering about the EMI every month, a calculator gives you a decent idea of your expenses. In such a case, you should use an EMI calculator. These calculators are especially beneficial for beginners. Even financial experts utilize such calculators for ease of work.