An EMI stands for an Equated Monthly Installment, which is an amount you need to pay monthly as a loan EMI. Moreover, the person who claims the loan makes loan repayment in the form of monthly EMI to banks and financial institutes to whom you have taken a loan. The loans can be classified into different categories such as Home Loans, Gold Loans, Education Loans, Car Loan and Personal Loans. Moreover, everything is pre-discussed in the agreement, from processing to particular lending, whether you have taken a loan from a bank, moneylender, or financial institute.
But sometimes, we need to make calculations by ourselves. And leave everything on the loan lender’s shoulders; those consequences can even go against us. Therefore, as a backup plan, you can access the “EMI Calculator ” an online tool that can be accessed via a user-friendly interface. Furthermore, using this EMI Calculator can help you calculate monthly EMIs, Interest rates, make loan comparisons, make a loan repayment, etc. Now, let’s do a fair search regarding the Home Loan EMI calculator and its usage & functioning.
How to Calculate EMI via Formula?
There’s no such rocket science in calculating your monthly EMIs via EMI Calculator, Home Loan EMI Calculator, Housing Loan EMI Calculator, or HDFC Home Loan EMI Calculator. But learning about calculating the manual EMI formula is equally important. So you can cross-check your calculation or outcomes whenever required. Therefore,
- The complete formula is EMI = [P x R x (1+R) ^N]/ [(1+R) ^N-1].
- In the above-given formula, E stands for EMI.
- When it comes to P stands for “Principal Loan Amount.”
- Next, R is related to the monthly rate of interest. If you are calculating the interest rate annually, then the interest rate will be – interest / (12 x 100)].
- Last but not least, N stands for the loan tenure or duration. In which you need to make the loan repayment on a monthly basis.
Describe the Role of an EMI Calculator in Financial Planning
In order to bring some more clarity, this Housing Loan EMI calculator provides you with a clear and exact idea of the amount you need to pay in the form of monthly EMIs. You can even improve your financial planning via EMI online calculator by decluttering extra expenses and over-flow of money from the monthly budget. Moreover, this EMI online calculator is filled with details and guidance that help you to evaluate the loan amount within the availing loan tenure period. Hence, knowing about the EMI plays an important role in calculating your eligibility. And to manage your finances and plan your budget so that you can make your loan repayment journey much easier.
What do you Understand about an EMI Calculator?
Are you still considering the EMI Online Calculator as other ordinary calculators? Then, it would help if you rethought it, as accessing the EMI online calculator is driven by loan applicants. You can calculate the loan repayment amount you need to pay every month. Moreover, you can easily access this EMI online calculator via a user-friendly interface. People can even find this calculator on the website of online money lenders, banks, NBFCs, financial institutes, etc.
Besides monthly EMIs, eligibility, and loan tenure, you can even use this EMI online calculator to calculate the total loan interest amount, due interest amount, and ongoing loan calculations. Furthermore, it’s quite simple to access this EMI online calculator. All you need to do is enter the loan amount you are applying for. Next, you need to select your loan tenure or duration in the provided field. Last, select the loan interest rate, which is 12%, but you need to follow the website.
Factors Responsible for Affecting your Loan EMI
There are a number of factors that are responsible for affecting your loan EMI. So, it’s better you should already know about them in advance to avoid any further issues. And these are:
- Principal Amount: The principal amount or the loan repayment amount that you need to pay to the lender in the form of EMIs. If you see the effect of the principal amount on the loan EMI? Then, you will find that whenever you apply for a lower principal amount, you must pay lower EMIs monthly. And applying for the higher principal amount makes you pay higher monthly EMIs.
- Rate of interest: Another factor affecting your loan EMI is the interest rate. Which is basically a rate at which the lender offers/approves the loan amount. And the applicant has to pay the monthly EMI along with the rate of interest.
- Tenure Period: The last thing is the loan tenure or duration within which you must repay the loan. And remember, the shorter your loan tenure is, the more you have to pay the EMI amount. And the longer your loan tenure is, the less you have to pay your monthly EMI amount.