The amount of the EMI you can afford to pay over the course of years will determine how much loan you should take. What EMI plan can you actually afford? All these doubts are always there whenever someone is planning to take a loan. To make this decision, you must consider your financial and personal factors. Loan EMI is one of many things a borrower has to deal with. The factors related to that loan, including the rate of interest, principal amount, and tenure, give you a precise analysis of what you’ll be committing to.

Here, using an online Loan EMI Calculator will assist you with quick and error-free EMI calculations. Furthermore, using a loan calculator will drive you through every aspect of it, explaining how they impact the loan.

## Loan APR and IRR: What is it?

To better utilize the calculator better, it’s vital to understand the concept of Loan APR before. APR is an abbreviation of the Annual Percentage Rate. Financial institutions like banks mostly impose fees in addition to interest on loans. Furthermore, lenders charge various non-refundable fees, such as processing and paperwork fees, when approving a loan application. All these one-time fees for loan applications are taken into account by the loan APR. After accounting for the loan interest rate as well as the charges you incur while applying for a loan, the loan APR shows the true cost of your loan. The net effective cost of your loan, as shown by the loan APR is a comprehensive measure that is calculated annually. It shows the internal rate of return (IRR) on loans for the banks.

For instance, if you are paying ₹ 2,000/- as processing fees for a loan worth ₹ 5,00,000/- for a 7.5% EMI scheme with a tenure of 2 years, your loan APR is 7.93%. i.e., you’ll pay 7.93 interest on the loan.

### What is a Loan EMI Calculator?

By virtue of the name, you can assume that it is a tool to evaluate the EMI for your loan. Furthermore, it is made to make things convenient and is available on this site. To calculate your EMI, enter the loan or principal amount, rate of interest, and the loan’s period. The EMI payment schedule’s start date can also be modified. While the interest rates provided by various banks may change, you will always be able to calculate your monthly payment rapidly.

Additionally, you can get loan-specific calculators, including home loan EMI calculator, personal loan EMI calculator, car loan EMI calculator, loan EMI calculator, housing loan EMI calculator, business loan EMI calculator, and loan against property EMI calculator on the freeemicalculator.in. Also, you may utilize bank-oriented calculators like the HDFC home loan EMI calculator and SBI home loan EMI calculator as well.

#### Loan Affordability Calculator

When someone takes out a loan, they are most worried about the time repayment of the loan via EMI. If the finances are appropriately managed, everyone may avoid falling into a debt trap. Thus, looking at it from the other perspective, how much EMI you will be able to pay can be taken into account to ensure you get the desired loan.

For instance, if you want to buy a new car and you know that you’ll be able to pay the EMI Calculator for this long period, then determining the affordability of a loan is easy. The loan amount calculator will let you know how much you can borrow once you enter your monthly income, the interest rate your bank charges, and the selected tenure. Learn more about the variables that affect the loan amount you may qualify for.

##### Loan Term Calculator

Many borrowers look towards refinancing their loans at a lower rate. For that, you get two options; either to reduce your EMI or loan repayment term. Those who want to reduce the loan tenure can estimate how much time is needed to repay their refinanced loan.

Apart from that, if a borrower plans to make a partial pre-payment on an existing loan, they can decide the remaining duration on the outstanding principal amount using this calculator.

##### Interest Rate Calculator

It has become a norm to buy things in installments. Several sellers and manufacturers tempt consumers using this trick. This could lead to potential fraud as someone may charge you extra under the sheets. Therefore, using the loan calculator, you can evaluate the rate of interest imposed on the item. For that, you would require the loan amount, EMI, and loan tenure.

Previous Article – How To Use Home Loan EMI Calculator