Why EMI Calculator?
The widespread acceptance and usage of EMI calculator has placed this online tool to secure an important gateway for people applying for loan. This calculator is designed in such a way that a consumer applying for loan gets the most vital information about his forthcoming monthly outflow as payment of loan. The EMI calculator not only generates the exact amount for payment but is also a pathfinder for borrower as how much loan amount would be feasible for him. This tiny tool called as EMI calculator manifests an assumption about deduction of amount from monthly income.
Be Your Own Financial Planner!
Just by clicking on internet, you are able to land on web pages of different EMI calculators. Choose one for yourself and start punching each field step by step. In just a few moments after feeding in the EMI calculator, you will be able to know about the amount of monthly outgo on the intended amount of loan. Moreover, you would also be aware about total interest on loan amount for the entire period of loan. Hence, EMI calculator on one hand is proved to be a constructive tool to generate monthly outflow while on the other hand it is indicative in terms of total interest to be paid for the selected tenure of loan.
Usage of EMI Calculator
Frequently called as EMI or equated monthly installment is a simple result of three inputs that are punched in EMI tool available online. These inputs are
(A) Principle amount or amount received/intended amount from lender as loan
(B) Pre-fixed interest rate on loan amount
(C) Number of months/years/tenure
To simplify more
, EMI may be defined as a pre-determined amount set by lender to be paid at specified date of every month till the entire loan is paid with interest. In other words, an EMI is composition of principal/loan amount and pre-fix interest rate for payment of loan along with tenure for payment. By knowing your EMI before jumping to apply for loan is of great help in personal budgeting. It will make you easy and financially comfortable in payment of loan.
By entering these values, you can get an indicative amount of your EMI. For an example, a loan amount of Rs. 23,00,000@interest rate of 11.00% per annum for the period of 299 months would indicate an EMI of Rs. 22556.91 per month.
The formula for EMI (in arrears) is:
Where E is EMI, P is Principal Loan Amount, r is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.25% per annum, then r = 10.25/12/100=0.00854)