Taking a loan is one of the best ways to turn your dreams into reality. From home loans to car loans, from education loans to home loans, there are so many types of loans. It’s true that loans are there to make our lives easier. However, loans are also a big liability. Once you take a loan, you are entitled to repay it with due interest through monthly installments. And for that many people have to cut down on their regular expenses and replan their whole budget. People who do not plan their EMIs and budget in advance, they face a lot of difficulties.
In this case, the Loan EMI calculator acts as a savior. Calculating EMIs for different principal amounts, tenures, and interest rates manually can be very taxing. There are chances of making mistakes as well. But with an EMI calculator, all this can be done within seconds. You just have to enter the details and let the calculator do its job. You can easily find an EMI calculator online. The interface is simple and easy to use, and the users have the option of adjusting it to suit their needs. Users can either enter the numbers directly or use the slider to put the details.
How to use an EMI calculator?
Use the below formula for calculating the EMI
P x R x (1+R)^N / [(1+R)^N-1] where-
P is your Principal loan amount
N is your loan tenure, in months
R is your monthly interest rate
How an EMI calculator can help you
An EMI calculator provides you with the exact amount that you need to pay every month against your loan repayment. This not only reduces the manual labor, but also helps you compare different plans and make an informed, intelligent decision. Creating a loan estimate and determining the own contribution requirements and property cost helps determine how much can be borrowed. The EMI is therefore essential for calculating eligibility for home loans and planning your home buying process.
The best thing about an EMI calculator is you can experiment with different numbers. You can keep on changing the tenure, interest rate, and principal amount to find out what combination works the best for you. Additionally, this is available free of cost online and you can use it as many times you want. If you calculate different EMI options, you will be able to decide whether to take out the loan right now or in two years’ time.