Online EMI Calculator
Find out how much money you can save for your future!
Worried about how your future loans will affect your budget? Plan your finances perfectly by estimating the EMI you will pay. Use Vakilsearch EMI calculator
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Equated Monthly Instalments (EMI) - An Overview
Equated Monthly instalments or EMI are fixed payments that are made by the borrower to a financial entity towards the repayment of a loan. It is devised such that a consistent amount is paid monthly towards the repayment of the loan. In such a scenario the borrower takes a loan from a financial institution such as a bank, agreeing that instead of paying all at once they will pay a certain amount every month towards the loan with an agreed upon interest.
Online EMI Calculator
An EMI calculator is a tool which helps in calculation of the amount to be paid each month towards the repayment of the loan.
The EMI calculator is a tool which contains 3 variable parameters which can be toggled. The first is the amount needed, second the estimated rate of interest and third the number of months or the tenure. After choosing the numbers on these three variable parameters the calculator shows the EMI amount.
How the EMI Calculator Works
The EMI calculator helps calculate the monthly amount to be paid according to the following formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
| ‘P’ denotes the principal amount. |
| ‘R’ represents the rate of interest. |
| ‘N’ is the number of years for which the loan is taken, |
How to Use EMI Loan Calculator
Step 1: Open EMI calculator link on the Vakilsearch website
Step 2: Put in the amount to be borrowed, expected rate of interest and the tenure
Step 3:The calculator will show your EMI
Step 4: You can toggle the amount and other variables to choose an EMI suited for you.
Advantages of Using Online EMI Loan Calculator
It is important to determine your eligibility and the amount you can pay before taking a loan. This is where the EMI calculator is a very handy tool. The other advantages include:
Accessibility: EMI calculators can be used at any time before availing the loan. It can help you calculate and compare between the loans offered by different financial institutions.
Financial Planning: It helps you to know the expected amount you should be paying on your loan and plan your budget accordingly.
Types of EMI Calculators
There are different types of EMI calculators, depending on the loans you plan to take.
Home Loan EMI Calculator
One of the most popular sorts of bank loans obtained each year is a mortgage. Typically, they have a larger principal and a longer employment history. This is why it is crucial to complete all of your calculations before submitting an application for a mortgage. Before going to the bank, you can plan your budget using our straightforward house loan EMI calculator, which will show you how much EMI you must pay for the loan amount.
Car Loan EMI Calculator
Auto loans are becoming more and more necessary as people's desires for expensive cars grow. The EMI must be planned, though, as failure to make payments could result in the bank seizing the car.
Personal Loan EMI Calculator
To pay for potential unforeseen expenses, personal loans are essential. Many banks offer personal loans for a variety of needs, from wedding costs to vacation needs. The EMI should be calculated appropriately because the interest on these loans is substantial.
Education Loan EMI calculator
The inflation in the education sector is considerable as it has seen a growth of 10% between 2012 and 2020. This has led to the costs of many courses becoming considerably high. However, a number of options for educational loans are available making sure that the students can study based on their interest. These loans have a moratorium period so that the borrower is not burdened until the education is complete. Still, calculating the estimated EMI is necessary to avail best results.
Loan Against Property EMI Calculator
The loan against property or LAP is given when you have any property registered to your name. This type of loan is given when the commercial or residential property is mortgaged or kept as collateral. It is therefore important to calculate the EMI so that your property is not foreclosed on.
Factors Affecting Loan EMI
Several factors affect EMI calculation:
Change in Interest Rate
The change in rate of interest greatly affects the EMI calculation. The types of interest rates are floating, fixed and hybrid. The floating rate of interest is based on the MCLR (Marginal Cost of Funds based Lending Rate) which may change throughout the tenure. A hybrid interest rate has a fixed rate for one part of tenure and floating or the other.
Change in Tenure
The change in tenure directly affects the EMI calculation and tenure may change if you switch banks. The EMI decreases with the increase in tenure.
Prepayment of Loan
In case of prepayments, the EMI decreases as the prepayment amount is deducted from the principal and hence the interest component of the loan also decreases. The part of the EMI component towards payment of principal also increases.
Why Vakilsearch
Vakilsearch’s EMI (Equated Monthly Instalment) calculator is a tool that helps individuals calculate the monthly payments on a loan, such as a mortgage, car loan, or personal loan. It helps individuals determine how much they can afford to borrow and plan their finances accordingly.
Vakilsearch’s EMI calculator typically requires the following inputs:
| Loan Amount: The total amount of the loan |
| Interest Rate: The annual interest rate on the loan |
| Loan Term: The length of time over which the loan will be repaid, usually measured in months or years. |
Using these inputs, the EMI calculator can provide an estimate of the monthly payment required to repay the loan, including the interest and the principal amount. The calculator also gives the option to see the breakdown of the interest and principal component of each EMI, which helps the user to understand the total interest paid over the loan period.It's important to note that the calculator is based on the inputs provided and it's an estimation and not a guarantee of the EMI amount. Also, the actual EMI amount may be different from the projected EMI amount based on the lender's terms and conditions. If you have any queries, get in touch with our experts right away.
Frequently Asked Questions (FAQs)
As the banks have different interest rates to offer based on the individual’s credit scores. These rates of interest affect the EMI and can be compared to avail the best offers.
They are both equally accurate but online EMI calculators are easier to use.
The EMI is based on the inputs of the individual. It is not always the same as even the bank changes the rate of interest by a fraction the EMI changes considerably.
