EMI Calculator

An EMI calculator is a versatile financial tool that can help you find the amount you need to repay each month for different types of loans. When you apply for a loan and borrow money from a lender, they typically charge interest on the principal amount borrowed. Thereafter, you need to repay a portion of the principal and a portion of the interest each month — throughout the repayment tenure. These repayments are made via equated monthly instalments or EMIs.

With an EMI calculator, you can evaluate how much this amount works out to be, depending on the amount borrowed, repayment tenure and interest rate. This will help you decide whether or not you can afford the loan.

A loan EMI calculator like the one available on the Research 360 platform can be useful to you in several ways. Let us check out the top benefits of using this tool to find the EMI amount.

• Error-Free Calculations

  If you calculate the EMI manually, you may make mistakes in the process and end up with an inaccurate result. With an EMI calculator, however, you can rest assured that you will obtain accurate and error-free outputs, so you can make your decisions in an informed manner.

• Suitable for Different Loans

  A loan EMI calculator can be used for any type of loan that requires fixed monthly repayments. This includes home loans, loans against property, car loans, two-wheeler loans and personal loans. This makes it a versatile financial planning tool that works for different types of credit facilities.

• Free to Use

  The calculator is also free to use. You need not pay any fee to use the Research 360 EMI calculator. This means you can run any number of iterations to understand how the EMI changes with different inputs. Overall, this translates to a very cost-effective way to make smart decisions about your borrowings.

• Instant Results

  The EMI calculator also gives you the results instantly. All you need to do is submit the details required — like the amount borrowed, the repayment tenure and the rate of interest. With these inputs, the calculator uses the EMI calculation formula to instantly find and display the EMI amount, the total interest payable and the total amount payable.

• Supports Loan Comparisons

  If you have a good credit score, earn a steady income and meet the general eligibility criteria, you may qualify for various loan offers from different lenders. An EMI calculator helps you compare these offers and find the most cost-effective loan, so you can meet your financial requirements without overspending.

No matter what type of loan you plan to avail, the EMI calculation formula is the same if the repayments are fixed each month.

EMI = [P x r x (1 + r)n] ÷ (1 + r)n — 1

Here,

P is the amount borrowed, i.e. the principal

r is the rate of interest expressed as a monthly rate

n is the time taken to repay the loan in months

For example, say you plan to borrow Rs. 5,00,000 as a personal loan and repay it over 3 years (or 36 months). The interest rate on the loan is 12% per annum (or 1% per month). Using the EMI calculation formula, we can find the monthly repayment amount as shown below.

= [P x r x (1 + r)n] ÷ (1 + r)n — 1

= [Rs. 5,00,000 x 0.01 x (1 + 0.01)36] ÷ (1 + 0.01)36 — 1

= Rs. 16,607 per month

With a loan EMI calculator, this computation is easier, faster and more accurate. You just need to submit the details needed, and the online financial planning tool will do the needful.

To make the most of the Research 360 EMI calculator, simply follow the steps outlined here:

• Step 1: Submit the amount that you wish to borrow.
• Step 2: Enter the rate of interest on the loan.
• Step 3: Submit the period over which you wish to repay the loan.

The calculator then uses the EMI calculation formula to find the amount you need to repay each month. It shows you the EMI amount along with other key insights like the principal, the total interest thereon and the total amount payable.

The EMI amount may be fixed, but it depends on a wide range of factors. If you know what these aspects are, you can adjust them to increase or decrease the EMI payable, as required. Here is how your EMI amount varies with different factors:

• Principal

  The principal amount directly affects your EMI. If you borrow a higher amount, your EMI will also increase (provided all the other factors remain unchanged). So, it is best to only borrow the amount you require if you want to keep your EMIs in check.

• Rate of Interest

  A higher rate of interest naturally increases the EMI payable each month. If you want to lower your EMIs, you can consider negotiating a better interest rate with your lender. This will make the loan more affordable.

• Repayment Tenure

  The repayment tenure is inversely related to the amount payable as EMI. A longer repayment period generally results in lower monthly EMIs, but the total interest paid over this tenure will be higher.

• Credit Score

  If you have a good credit score (preferably 750 or higher), you may be eligible for lower interest rates. This, in turn, can help bring your EMIs down. Conversely, if your credit score and credit history are only average, your interest rate and EMIs may be higher.

• Nature of Interest

  Fixed interest rates keep EMIs constant throughout the loan tenure, thus offering you some predictability. Floating rates, however, can change based on market conditions. This may potentially increase or decrease your EMI amount over time.

• Home Loan EMI Calculator

  A home loan EMI calculator can be vital if you plan to apply for a loan to buy or construct your dream house property. You can find the monthly instalment amount instantly if you know how much you wish to borrow, the interest rate thereon and the repayment duration.

• Vehicle Loan EMI Calculator

  Vehicle purchases can also be expensive, especially if you want to buy a new car or two-wheeler. Car loans and two-wheeler loans can make this dream achievable, and a vehicle loan EMI calculator can help you understand your EMIs better before you apply for a loan.

• Personal Loan EMI Calculator

  A personal loan is an unsecured credit facility that you can use for various personal financial requirements. If you have a good credit score, obtaining this type of loan can be easy. However, to get more clarity on the EMI amount before you borrow money, you can use a personal loan EMI calculator.

• Education Loan EMI Calculator

  With the costs of higher education increasing steeply both in India and abroad, an education loan may be necessary if you want to enrol in the top institutions in various fields. An education loan can finance this milestone easily, and an education loan EMI calculator gives you the insights needed to make an informed decision.

• EMI Calculator for Loan Against Property

  A Loan Against Property (LAP) is a type of secured credit facility that is offered against a property you own. You can use a LAP loan EMI calculator for more clarity on how the equated monthly instalments on this credit facility will be computed.