Personal loan EMI Calculator: Get the best deal in Four Simple steps

A Personal loan EMI calculator is a simulation that allows you to calculate the EMI amount based on the principal amount, term, and interest rate. It's a quick and easy way to plan and balance your cash flow so you never run out.

The Loan Amount, Loan Tenure, and Interest Rate are displayed in a formula box with three sliders. After you've entered all of your information, the EMI calculator for personal loan will calculate the EMI (Equated Monthly Instalment) amount you'll have to pay the bank each month to repay the loan.

To keep future payments stable, it's critical to calculate your EMI ahead of time. When you take out a loan, you agree to pay the bank a set amount on a set date each month. To avoid any future payment discrepancies, you should consider the stability of your income, monthly expenses, and existing loan obligations before taking out the loan. Unexpected expenses are likely to throw your monthly budget off. This may not be a major cash flow problem, but even a minor shortfall can throw your plans off. A small personal loan or an emergency loan may be the solution in this situation.

Benefits of Personal Loan EMI Calculator

The Personal Loan EMI Calculator is a simple tool that requires only the input of the principal amount, term, and interest rate. You get a clear picture of how much you're borrowing, which makes it easier to plan your budget.

An amortization table and a graphic representation of the loan are displayed. Comparing interest rates and other offers from various banks assists you in selecting the best personal loan. You determine your loan eligibility and only approach the bank once you are certain you will be approved.

In seconds, the EMI calculator performs complex calculations. It assists you in determining your repayment capacity and avoiding loan traps. You get a bird's-eye view of your loan and can make well-informed decisions about which loan is best for you.

Read Also: Use Of Personal Loan Interest Calculator To Calculate Interest Rate

How do Personal Loan EMI Calculators work?

You can calculate your EMI amount with the help of the mathematical formula given below:

EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are the variables.

It also means that changing any of the three variables will change the EMI value. The letter 'P' stands for 'Principal Amount.' The original loan amount given to you by the bank is the principal amount on which the interest is calculated. The letter 'R' stands for the bank's interest rate. The number of years given for loan repayment is referred to as 'N.'

Because EMIs are paid every month, the duration is calculated in months. So, if you take out a Personal loan of Rs 10 lakh at a 15% interest rate, your approximate EMI will be: P = Rs 10 lakh, R = 15%, N = 2 years or 24 months.

EMI = [10,00,000 x 15/100/12 x (1+15/100/12)^24] / [(1+15/100/12)^24-1]

EMI = Rs 48,487.

Summary

A  personal loan is a one-time loan that you can use to meet your immediate financial needs.

A Personal Loan would be a reliable means of obtaining funds. Because a personal loan is an unsecured loans, the interest rate is typically higher than a home or car loan. As a result, you must know your finances ahead of time. Compare potentially cheaper options if you're considering an unsecured personal loan, and make sure the monthly payments won't put a strain on your budget.

The personal loan EMI calculator is a web-based tool that calculates monthly EMIs and divides them into principal and interest over the life of the loan. You can calculate the amount of EMI by simply entering the loan amount, loan tenure, and rate of interest.

Read Also: Make your Financial Planning Easy with Personal Loan EMI Calculator?