personal loan

Personal Loan Interest Rate Calculator

When you apply for a loan, the EMI amount you will pay is critical in determining your total loan amount and repayment period. You’ll be able to see your monthly payment, which will assist you in determining the appropriate loan amount and repayment period. Your monthly EMI will be computed automatically, with the help of the calculator, once you enter the amount of the loan, personal loan interest rate, and repayment period. 

It is always recommended to look at your EMI before going out to opt for a loan. This is because you should choose your EMI with extra care as late payments affect your CIBIL. As a result, it will not be good for your financial health.  

Giving a short brief about Personal Loan EMI calculator 

With the availability of loans today, you may purchase anything you want by paying EMIs. The payable EMI is made up of three parts: the principal, interest rate, and loan term. A personal loan EMI calculator can be extremely useful in calculating the monthly payment you must make toward the precise loan amount you choose. A personal loan calculator is a tool that helps the applicant to help know more about the exact amount of EMI he will be paying every month. This EMI will be based on the specific data such as the loan amount, interest rate and the interest rate. 

What is the personal loan calculation formula?

Begin by entering the amount you wish to borrow in the Loan Info section. After choosing the loan amount, go for the below steps. 

  • Think about your desired repayment time in years or months.
  • Choose the loan interest rate you are willing to opt for.
  • Determine your principal and interest amounts.

You may also choose Show Amortization to show a timeline of how your monthly principal and interest payments will lower your loan balance until it is paid off. This table lets you know the balance amount which will be left every month until the complete loan tenure is finished. 

Personal Loan EMI Calculation Formula

Here is the formula of calculation of personal loan EMI:

EMI =  p x r x [{(1 + r)^n} / {(1+r)^n-1}] 

Where, P is the principal loan amount;

R is known to be the Annual rate of interest, which is divided by 100 (so it will be- R= Annual rate of interest/12/100).

For example, if R is 15% every year, then R=15/12/100 = 0.0125; and

N is the total number of monthly payments.

What is the motive behind using a personal loan calculator?

You obtain the money in a lump sum after a brief application and approval process. However, before you can enjoy those benefits, you must carefully consider how you will utilize your loan, identify the correct lender, and negotiate the best deal. All three can be accomplished with the help of the personal loan calculator and other tools.

The Bottom Line

It becomes easy to determine your EMI using an automated tool rather than calculating it manually.  You can also perform many computations in a matter of minutes by simply entering the information and letting the EMI calculator handle the rest!

If you calculate your EMI manually, you risk making a mistake that results in utterly inaccurate data. This could have an adverse effect on your personal loan. That is why the personal loan EMI calculator is advised, as it employs the mathematics required to compute your EMI accurately in just a few seconds.

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