EMI Calculator is a simple online tool which requires some input details from users to calculate their loan EMI’s. Using this online EMI calculator one can calculate all Loan EMI’s like Car Loan EMI, Personal loan EMI, Home Loan EMI, Educational Loan EMI, Business Loan EMI or whatever loan within minutes.
The process of borrowing some amount from a bank or financial institution is considered as Loan. The amount received by the person as a loan should be paid back to the Bank with Interest. If this is the case, then in which way a person who borrowed the money can return it back to the bank? The solution for this question is so simple, that is EMI.
What is EMI?
Equated Monthly Instalment, in short, called as EMI. It is the fixed payment amount paid by the borrower every month at a specified date to clear off the loan received from any Bank or financial institution.
Usually, the payment is made every month to clear off the whole loan amount with Interest. This means that Loan EMI which is paid every month includes both interest and part of the Principal Amount to be paid.
The terms used while calculating the loan EMI amount are the Principal amount, Interest rate and Loan Tenure. Now, we will know about these terms in brief.
The input amount which borrower received from the Lender as Loan is called as the Principal Amount.
As said earlier, the loan amount should be repaid back with interest. To calculate how much of interest amount should be paid is decided with this Interest rate charged on the principal amount.
The interval of time between Loan recruitment and the last day of payment of EMI of the Loan is called as Loan Tenure.
What is EMI Calculator?
A simple online calculator tool which comes handy when one need to check the Loan EMI’s borrowed from banks or financial institutions is an EMI Calculator. Calculate EMI in the online EMI calculator by feeding in the details of loan like principal amount, Loan Tenure and Interest rate.
How EMI Calculator works?
EMI Calculator online can be used for the hassle-free calculation of EMI just by entering the terms of Loan principal amount, Interest Rate and Loan Tenure. Once you provide these details, EMI Calculator calculates your Loan’s EMI through EMI calculation formula and provides you the amount of EMI you need to pay for a month.
While calculating EMI, the basic formula utilized by the calculator tool is cited below.
EMI Calculator Formula
E = P x r x (1+r)^n/((1+r)^n – 1)
E= Equated Monthly Instalment (EMI)
P= Principal amount of received Loan
r= Interest rate applied to the principal amount
n= Loan tenure to clear off the Loan
Calculating the EMI using this formula is usually called as a Manual method of calculating EMI. Computing EMI’s for different sets of the principal amount, interest rate and Loan tenure manually might consume a lot of time.
There may be chances where calculation might go wrong because of confusion. To avoid this problem, it is best to choose Online EMI calculator tool made available to users here.
How to use Online EMI Calculator
- Enter the principal amount received as Loan.
- Enter interest rate at which loan has to be repaid back.
- Enter the Loan tenure between which repayment of the loan should be completed.
- Click on tab showing “Calculate” to get instant results.
- Within seconds EMI amount which should be paid every month will be displayed on the screen.
EMI Calculator gives instant results with the immediate input of the details of the Loan. It is best to calculate EMI for different sets using Online EMI calculators since it provides accurate results instantly. Operating this EMI calculator is so easy and also works at free of cost.