Loan EMI Calculator 2024
Loan EMI Calculator: Personal loans are preferred over other loans as they require less documents, provide flexibility of use and take comparatively less time to process. Unlike other loans, it usually has a short repayment term of 1-5 years. EMI Calculator is a quick and easy solution to pre-plan and balance your cash inflows and outflows, so that you never run out of money. EMI calculator is a formula box with 3 inputs, namely- loan amount, loan tenure and interest rate. Once you fill in the details, the calculator will tell you the EMI (Equal Monthly Installment) amount that you will need to pay.
You can calculate your EMI amount using the following mathematical formula:
MI amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R and N are variables.
This also means that the EMI value will change whenever you change any of the 3 variables. Let us discuss these 3 variables in detail. ‘P’ stands for ‘Principal Amount’. The principal amount is the principal loan amount given to you by the bank on which the interest will be calculated. ‘R’ stands for interest rate set by the bank. ‘N’ determines the number of years given for repayment of the loan.
Factors Affecting Loan EMI Calculator
Loan EMI Calculator There are many factors that affect the EMI calculation. Because the EMI is mostly based on the principal amount, tenure and interest rate. Any change in these variables may cause a change in the EMI amount. Before this, one should know that there are many other factors depending on which the personal loan (amount) offered may vary. For example, your credit score. Higher the credit score better are the chances of getting a personal loan (amount). Hence, you can manage your credit score by paying your credit card bills on time and keeping credit card balances low. Apart from this, there are other criteria based on which the loan amount may vary, viz
- Income proof
- Investment Statements
- Stable employment history
- Housing history
- Debt-to-income ratio
- Social media
|Loan EMI Calculator: EMI Calculator