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EMI Calculator

Looking for a personal loan and thinking that much you will have to pay monthly to meet unexpected expenses

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EMI Calculator

Looking for a home loan and thinking that much you will have to pay monthly to meet unexpected expenses

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EMI Calculator

Looking for a businessl loan and thinking that much you will have to pay monthly to meet unexpected expenses

EMI Calculator

What is an EMI?

An EMI stands for the term is the abbreviated form of the term 'Equated Monthly Instalments’. The term pertains to banking and finance where a borrower repays the loan to the lender. The loan is paid in smaller fractions and comprises the principal lending amount and the interest charged. A specific and mutually agreed date is set by the lender for every calendar month on which the borrower pays the amount, beyond which some lenders charge fines.

The periodic instalment is fixed unless the borrower pays some part of the loan in the form of 'part payment', or there is any change in the fluctuating lending rates, or the loan tenor is changed.

There is an inverse relationship between the loan tenor and the amount paid. If the loan tenor is less, the EMI will be more, and vice-versa.

What is an EMI Calculator?

An EMI Calculator is a sorted tool which is more of a saviour when you are about to take a loan. When planning to avail any kind of loan, there are already so many things to be worried about: the hefty documentation, churning out time from the busy schedule, and what not. On the top of it, the bank visits excruciate almost everyone.

Moreover, if the bank rejects your loan application, it can eventually affect your credit rating. A low credit rating will mean increased difficulty in finding another bank or Financial Institution who can provide you the loan. To ease up the process, EMI Calculators have been formulated. Like the name suggests, these calculators calculate your loan tenor and EMI.

There are many financial aid websites that access your details and claim to help you with the process. However, it is very important to choose the right calculator so that the calculated results are precise and your personal information is also not at stake.

What information do EMI Calculators provide?

The EMI Calculators provide the first-hand information about the total interest and EMIs of your loan.

The stipulated amount of instalment that you need to pay every month will be calculated. You can check you amortisation details, where the Principal, Interest, Time and the Outstanding Balance is also be mentioned. Such a break up of all total helps the person to understand his loan and finance it easily.

How to Use EMI Calculator?

It is as easy to use an EMI Calculator as it is to login to your favourite social networking website. 
The general EMI is calculated on the basis of Loan amount, loan tenor and the rate of interest. The output will be processed and you will get the monthly EMI to be paid. The formula used is:

EMI = [P x R x (1+R) ^ n] / [(1+R) ^ n-1]

To fetch more personalised results, advanced EMI calculators require the following input:

For Personal Loans: 

  1. Loan Amount
  2. Tenure
  3. Rate of Interest
  4. Processing Fee

For Home Loans: 

  1. Loan Amount
  2. Tenure
  3. Rate of Interest

For Business Loans:

  1. Loan Amount
  2. Tenure
  3. Rate of Interest
  4. Processing Fee

Floating Rate EMI Calculation

No matter which loan you avail, personal, home loan or business loan, etc, there will be two types of rates of interests in most of the cases.

  1. The fixed rate of interest
  2. The floating rate of interest

The fixed rate of interest means that all through the loan tenure, the person would pay a fixed EMI without any alterations in the loan amount.

For the floating rate of interest, for the initial few years, the loan amount is fixed and then it changes, as per the regulated rates. You can decide the principal lending amount and the loan tenure. However, the interest rate shall be decided by the bank.

We shall here discuss the latter case. For floating rate of interest, there can be two scenarios:

  • Optimistic (deflationary) scenario
  • Pessimistic (inflationary) scenario

The two scenarios are nothing but the two extreme cases of the interest rate. It is important to understand that in any of the two cases, the loan amount will not be changed, but it is the loan tenor that will get affected.

It is important to know about both the scenarios so that you can decide whether to go for fixed rate of interest or floating rate of interest depending on the current financial situation and market trends.

In case of the floating rate of the Optimistic (deflationary) scenario, the floating rate of interest will decrease. This will decrease the loan tenor and hence will be a favourable scenario. If requested, your bank can also reduce your EMI rather than shortening the period of your loan.

In the latter case of the floating rate of the Pessimistic (inflationary) scenario, the floating rate of interest will increase. This will increase your loan tenor and hence will be an undesired scenario. If requested, your bank can also increase your EMI rather than increasing the period of your loan. This will mean that you can finish your loan on time. 

Finance Buddha’s EMI Calculators

Finance Buddha is your financial partner, and your guide. Finance Buddha is run by brilliant brains that have the knack of financial understanding and have used the recommended tips practically. The information you read on the web portal is 100% authentic, and the same goes for our EMI calculator.

Unlike other EMI calculators, the Finance Buddha provides you different EMI calculators for different loans. Tell us your loan details, and we process the required information and give you detailed perspective of your loan tenure should you go for it. Our EMI calculator generates specific results for home loans, personal loans and business loans.

Features & Benefits of Finance Buddha’s EMI Calculators

Among many features like the credibility of this web portal and intelligent brains behind making it, there are several other reasons why to choose the Finance Buddha’s EMI Calculators.

  • No such information required that puts your security to threat
  • Fast processing of the results
  • Accurate and Precise results
  • Minimal Information Required
  • No technical errors
  • Apply directly after the calculation
  • Simple and easy process

Types of EMI Calculators available at Finance Buddha

There are different types of calculators to suit your needs. The EMI calculators are different. This is not done to confuse the user. There is a simple logic behind it. We want our users to get results specific to their searches. Therefore, our specialised team built different calculators for every loan type.

There are different EMI calculators for all three types of loans:

  1. Personal Loans
  2. Home Loans
  3. Business Loans

While the contact information is the same in all the three loans, the information is different for some aspects.

Loan Amortization Table

The loan amortisation table gives you a clear picture of how your loan will be bifurcated. It specifies the amount that will go to principal and the amount that will go into the interest. The loan amortisation table generates the specific result for every user by using the EMI calculator.

You can see that initially, more of your contribution will go to the interest section. Later, the amount in the principal section will increase. You will be able to see the outstanding loan amount over the years.

At Finance Buddha, you can see the loan amortisation in a well-laid out tabular form. You can also see the outstanding balance after every month. The table can help you check your status if you plan to pre-pay your loan or fore-close it.

Below is an example of our amortisation table for a personal loan of ₹ 100,000 taken for tenure of 2 years (24 months) at an interest rate of 14% and a processing fee of 2%.

Months

Principal

Interest

Total EMI

Balance

1

3,634/-

1,167/-

4,801/-

96,366/-

2

3,677/-

1,124/-

4,801/-

92,689/-

3

3,720/-

1,081/-

4,801/-

88,969/-

4

3,763/-

1,038/-

4,801/-

85,206/-

5

3,807/-

994/-

4,801/-

81,399/-

6

3,851/-

950/-

4,801/-

77,548/-

7

3,896/-

905/-

4,801/-

73,652/-

8

3,942/-

859/-

4,801/-

69,710/-

9

3,988/-

813/-

4,801/-

65,722/-

10

4,034/-

767/-

4,801/-

61,688/-

11

4,081/-

720/-

4,801/-

57,607/-

12

4,129/-

672/-

4,801/-

53,478/-

13

4,177/-

624/-

4,801/-

49,301/-

14

4,226/-

575/-

4,801/-

45,075/-

15

4,275/-

526/-

4,801/-

40,800/-

16

4,325/-

476/-

4,801/-

36,475/-

17

4,375/-

426/-

4,801/-

32,100/-

18

4,426/-

375/-

4,801/-

27,674/-

19

4,478/-

323/-

4,801/-

23,196/-

20

4,530/-

271/-

4,801/-

18,666/-

21

4,583/-

218/-

4,801/-

14,083/-

22

4,637/-

164/-

4,801/-

9,446/-

23

4,691/-

110/-

4,801/-

4,755/-

24

4,746/-

55/-

4,801/-

0/-


Loan EMI = ₹ 4,801/-

Total Interest Payable = ₹ 15,233/-

Total Payment (Principal + Interest) = ₹ 115,234/-

Break-up of Total Payment

Why should you be using EMI Calculator?

The reason you need the EMI calculator is the same reason you need a simple calculator. It makes your task simple and convenient. Why go to banks to check your EMIs if you can check it in a relaxed manner while sitting in front of your desktop!

Some users also check the EMIs manually with the help of pen, paper or a physical calculator. Just imagine how troublesome can it be to perform the intricate calculations. Similarly, some people use spread sheets which are a problem again because you will have to apply the formula over and over again.

In the technologically-savvy world, it is a smart option to use EMI calculators and save your precious time!