What is the EMI Calculator and how do I use it? In this review, we will be disusing everything you need to know about the EMI calculator. As you know, you must carry out thorough research before applying or opting for a loan. One of the best ways to determine if a particular loan is right for you is by using the EMI Calculator to calculate your loan tenure and interest rate.
The EMI Calculator is a calculator designed to enable you to calculate your home, car, and personal loans and interest rates. It also helps you to understand the difference between monthly payments and the overall cost. In addition, you can make use of this calculator to determine and plan your monthly and overall finances well.
Rather than calculating manually or using Excel, where you might likely make mistakes, using the EMI Calculator provides you with an accurate result. This means you can calculate your personal, home, and car loans without any scope of error or mistakes. Additionally, you can use this calculator to find an affordable loan tenure and interest rate that you can conveniently pay every month.
Most online EMI calculators also let you view and download the entire amortization schedule. This will assist you in calculating the interest and principal repayment throughout the loan’s whole period. It is one of the best and most handy online tools designed to help you find an affordable and great loan.
What is EMI?
Meanwhile, before we tell you about the EMI calculator, it’s important to understand what EMI is. What is EMI? EMI, which means Equated Monthly Installment, is the sum paid to the bank or other financial institution every month until the debt is completely paid off.
It entails the principal portion of the loan amount and the interest. It should be noted that the EMI formula is as follows: P x R x (1+R) N/[(1+R) (N-1)]. P stands for the principal amount, R is the rate of interest, and N is the loan tenure.
Why Should I Use EMI Calculator?
There are so many reasons why you should consider using an EMI Calculator. In this section of the article, we will be discussing some of the benefits and importance of the tool. Here are some of the benefits to check out:
It makes Calculation Easier and Faster
No doubt, the world revolves around calculation. Before completing all of the loan paperwork, it is critical to calculate your EMI amount. Enter the loan amount, rate of interest, loan tenure, and processing fee if you are one of those clients who has applied for a loan.
The home loan calculator will perform the required calculations and calculate your EMI. You can find out how much you can borrow by using the loan amount calculator.
Aids in Personal Budget Planning
Another benefit of using the EMI Calculator is that it helps you plan and create a realistic personal budget. After you’ve gathered all of the information, you’ll need to repay the debt. You’ll be able to organize the rest of your spending and save much more easily.
You can also make a list of all your current and future debts to get a sense of how much money you owe and how much money you owe in EMIs. It’s usually a good idea to be aware of your financial situation beforehand.
You Can Determine Your Loan Tenure
One of the main reasons why you need to make use of a loan calculator is that it helps you determine your loan tenure and also select the best-suited tenure plan for your loan.
In addition, you also get the opportunity to change your loan value and the number of EMIs to find the most effective and affordable loan tenure. Lastly, you can experiment with different loan amounts and tenures to find the most convenient plan.
Know Your Eligibility
Using this tool enables you to know if you are eligible for a particular loan based on the information and details provided. Whether you are applying for a car, home, or personal loan and you’re not sure if you qualify for the loan, you can always make use of the EMI Calculator to get accurate results.
It Ensures Good Credit Rating
Maintaining a decent credit score requires a thorough understanding of your financial statements. If you know all of your EMIs ahead of time, there’s a low chance you’ll miss a payment. This is critical since avoiding a bad credit rating is important.
However, before the calculator can give you a value, you must first enter your credit rating. You’ll have to pay higher interest rates if it’s awful. In this instance, raise your credit score.
How do I Use the EMI Calculator?
It is so easy and simple to make use of the EMI Calculator. To access or use the calculator, you will first need to search online for the calculator using your computer web browser. Once you are able to access the website, input the following information to get started:
- Visit the EMI Calculator official website.
- Enter the Principal Amount of the Loan.
- Input the loan term either monthly or yearly.
- Enter the loan’s interest rate as a percentage.
- Lastly, enter the EMI in advance or in arrears for car loans only.
You can always follow the above steps and guidelines to use the EMI Calculator whenever you wish to calculate your personal, home, or car loan.