What is an EMI?
EMI stands for Equated Monthly Instalment. It is a fixed amount which you pay to the lender at the end of each month. An EMI is a repayment of the principal amount as well as the personal loan interest rate which is based on your outstanding loan amount as per the amortization schedule. The total amount of the loan is divided by the tenure (in months) chosen by you.
For the initial months of the repayment schedule, the interest component will be higher and will gradually reduce with each successive payment.
What is A Personal Loan EMI Calculator?
A Personal Loan EMI calculator is an online tool designed to help you understand how much EMI you will have to pay each month. All you need to do is enter the relevant loan details and the calculator gives you an estimated amount of your EMI. Once you get an estimation, it is easier for you to gauge your financial situation before the loan application.
How to Use a Personal Loan EMI Calculator?
It is very easy to calculate your EMI for a personal loan by using an EMI calculator. You can use the personal loan EMI calculator as per the following steps:
• Step 1: Enter the value of the desired loan amount.
• Step 2: Enter the expected Personal Loan Interest Rate
• Step 3: Enter the desired tenure in months for the personal loan
You can use the slider to enter these details. Once you feed the information, the calculators give you an approximate amount of your monthly EMIs.
How to Calculate EMI for Personal Loan?
An EMI calculator for personal loan uses the following formula for calculation.
E= [P x R x (1+R)^N]/[(1+R)^N-1] where
E stands for EMI
P- Principal Amount
R- Rate of Interest (Monthly)
N- Tenure (In Months)