How to use online EMI calculator?

Where:

P – principal loan amount

r is the monthly interest rate (annual interest rate divided by 12)

n — loan term in months

Although this formula may seem complicated, an online EMI calculator comes to the rescue.

Benefits of Using an Online EMI Calculator

Instead of manually plugging numbers into the formula, you can use an online EMI calculator to get quick and accurate results. Here’s how it will benefit you:

1. Fast and accurate calculation

The online EMI calculator instantly gives you the exact EMI amount for any loan amount, interest rate and lease term. This eliminates the need for complex manual calculations and ensures accuracy.

2. Helps in financial planning.

By calculating the EMI for your personal loan, you can assess whether you can afford the monthly payments. This allows you to compare different loan options and choose the one that best suits your budget. You can also experiment with different loan terms to see how it affects the EMI.

3. Transparent loan repayment structure

Using an online EMI calculator gives you a clear idea of ​​your repayment schedule. It shows how much of the EMI goes towards repaying the principal and how much goes towards interest. This transparency will help you better understand your financial obligations.

4. Flexible loan comparison

The online EMI calculator allows you to enter different loan amounts, interest rates and terms, making it easy to compare different loans from different lenders. You can easily choose the loan with the most affordable EMI or the one that best suits your financial goals.

How to use online EMI calculator?

Using the online EMI calculator is very easy. Here’s a step-by-step guide:

1. Visit a reliable EMI calculator website: There are many online platforms that offer free EMI calculators. Choose one that is trustworthy and easy to use.

2. Enter loan amount: Enter the amount of the loan you plan to take out.

3. Select interest rate: Enter the APR offered by your lender.

4. Select loan term: Select the term within which you want to repay the loan.

5. Click “Calculate”: The EMI calculator will instantly display the monthly installment amount you need to pay.

For example, if you borrow Rs. 5,00,000 at an interest rate of 12% per annum for a tenure of 3 years, the EMI calculator will show your monthly payment.

Factors affecting your EMI

Several factors can affect the EMI of your personal loan:

1. Loan amount: The higher the loan amount, the higher the EMI.

2. Interest rate: Higher interest rate results in higher EMI.

3. Loan term: A shorter tenure results in a higher EMI, while a longer tenure reduces the EMI but increases the total amount of interest paid.

Calculating the EMI for your personal loan is an important part of understanding the amount you will pay every month. Instead of calculating it manually, using an online EMI calculator makes the process simple and convenient. By entering the loan amount, interest rate and repayment term, you can quickly estimate your loan repayment obligations and better plan your finances. Whether you are applying for a personal loan for a wedding, a medical emergency or a home renovation, an online EMI calculator will help you take control of your finances and make informed decisions.

Disclaimer: This article is published in association with Bajaj Finserv and is not created by the editorial team of TNM.