When you decide to take a personal loan, you may find it hard to decide as there are many loan options with attractive interest rates and repayment terms. So, how do you determine which loan offering is right for you?
The answer is simple – use a personal loan EMI calculator!
A loan calculator is an online tool that gives you an estimate of your monthly payments and the total cost of your loan. You need to input the amount you want to borrow, the interest rate, and the repayment period to calculate EMIs.
EMI Calculator: An Overview
When looking to apply for a personal loan, one of the first things you will need to do is check the EMI calculator on the website of leading NBFCs. It will help you determine your monthly payments and interest rates. It shows the Amortisation Plan or the schedule of how payments will happen during your chosen loan tenure. With this information, you can choose the best personal loan.
Features of EMI Calculator
An EMI calculator is an important tool for calculating a personal loan EMIs. So, it is essential to find one that gives the desired results. Here are some features:
- Easy to use: The best EMI calculators are easy to use. So, you do not require assistance to use them. Once you enter your loan amount, interest rate, and repayment term, the results will be displayed clearly and concisely.
- Accurate: A good EMI calculator will give you accurate results, so you can make a well informed decision.
- Comprehensive: A good EMI calculator will provide you with all the information you need, such as the total amount of interest you will pay on your loan.
- Customisable: A good EMI calculator allows you to customize the results according to your needs. For example, you can adjust the repayment term and interest rate and get the desired result.
- Free: The best EMI calculators are available for free on the websites of leading NBFCs like Clix Capital.
Calculate Personal Loan Monthly Interest Rate
There are a few different ways to calculate your monthly interest rate, but the simplest method is to use a loan calculator for personal loans.
- Enter basic information about your loan (the amount, term, and interest rate), and the calculator will do the rest.
- You can also use it to get an idea of your monthly payments. This can be helpful if you’re trying to decide how much you can afford to borrow.
- By entering the loan amount, term, and interest rate into the calculator, you can get an estimate of your monthly payment.
Loan Calculator: Considerations
Some things you should consider when looking for a loan calculator are:
- The type of loan you want – There are different calculators for different loans, so ensure you get the right one for your needs.
- The term of the loan – This will affect how much interest you’ll pay over the life of the loan.
- The interest rate – This will affect your monthly payments and the total amount you’ll pay over the life of the loan.
- Any fees or charges associated with the loan – These can add up, so factor them into your calculations.
- The amount of money you want to borrow – This will affect your monthly payments and the total amount you’ll pay back over the life of the loan.
- Your financial situation – Consider your debts, income, and financial obligations when calculating your monthly payment amount.
Which Formula is Used for Personal Loan EMI Calculation?
Before applying for a personal loan, finding a loan calculator that uses the right formula for your specific loan is essential. Personal loans EMI calculation is based on the amount of the loan, the interest rate, and the term of the loan.
EMI = [P x R x (1+R)N]/[(1+R)N-1] – is the mathematical formula for computing EMIs; where –
E stands for EMI
P stands for denotes principal loan amount
R stands for monthly interest rate
N stands for the number for the loan term in months
Finding the best loan calculator to help you calculate your monthly payments is essential when taking out a personal loan. Many different loan calculators are available online, and knowing which one to choose can be challenging. So follow this guide, and find the best loan calculator for your loan.