EMI calculator: for all types of Loans
EMI Calculator/Loan EMI Calculator for all types of loans
EMI calculator is a useful tool that can help you make smart financial decisions and achieve your goals. Whether you want to buy a house, a car, a gadget or fund your education, you can use EMI calculator to plan your budget, compare options and choose the best loan for you. So, what are you waiting for? Try EMI calculator today and see how it can help you!
What is Equated Monthly Installment (EMI)?
EMI stands for Equated Monthly Installment. It is the fixed amount of money that you pay every month to the lender until you repay the entire loan amount. The EMI consists of two components: the principal and the interest. The principal is the original amount of money that you borrowed, and the interest is the cost of borrowing that money.
The EMI depends on three factors: the loan amount, the interest rate, and the loan tenure. The loan amount is the total money that you borrow from the lender. The interest rate is the percentage of the loan amount that the lender charges you as interest. The loan tenure is the duration of time that you have to repay the loan.
The EMI can be calculated using a simple formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where P is the loan amount, R is the interest rate per month, and N is the number of monthly installments.
For example, suppose you want to buy a car worth Rs. 10 lakhs and you take a loan of Rs. 8 lakhs at an interest rate of 12% per annum for 5 years. Then,
P = Rs. 8 lakhs
R = 12%/12 = 1% per month
N = 5 x 12 = 60 months
Using the formula, we get
EMI = [800000 x 0.01 x (1.01)^60]/[(1.01)^60-1]
EMI = Rs. 17,799
This means that you have to pay Rs. 17,799 every month for 60 months to repay the loan.
EMI Calculator / Loan EMI Calculator
EMI calculator or Loan EMI Calculator is a tool that helps you plan your monthly budget and manage your finances. EMI stands for equated monthly installment, which is the fixed amount you pay every month to repay your loan. EMI calculator helps you calculate your EMI based on your loan amount, interest rate, tenure and other factors.
Why use EMI calculator?
Some of the benefits of using EMI calculator are:
- You can compare different loan options and choose the best one for your needs.
- You can know how much interest you will pay over the loan period and how much principal you will repay.
- You can adjust your loan parameters such as loan amount, interest rate or tenure to suit your budget and repayment capacity.
- You can plan your monthly expenses and savings by seeing how much EMI you have to pay every month.
- You can avoid defaulting on your loan by getting reminders of your due dates and payment status.
How to use EMI calculator?
To use EMI calculator, you just need to follow these steps:
- Select appropriate EMI calculator.
- Enter your loan amount, interest rate, tenure and any other details required by the calculator.
- Click on calculate button and get your EMI amount instantly.
- See the break-up of your total payment into interest and principal components.
- See the amortization schedule of your loan, which shows how your loan balance reduces over time with each EMI payment.
- Change any of the loan parameters and see how it affects your EMI amount and total payment.
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