Plan Your Repayment of Personal Loan Better with an Online EMI Calculator

Personal loans are the most common way to get money instantly. People get these loans when they have a sudden need for cash. Having a plan to repay the personal loan is also essential.

Calculating the monthly payment on a personal loan assists you keep track of your money. With the help of an EMI calculator, you can get an idea of how much a personal loan might cost.

This tool helps you pay back your personal loan on time. With an EMI calculator for a personal loan, you can immediately determine and plan how much you have to pay each month.

How Does an EMI Calculator Work?

You can determine your monthly payment with the use of a tool called an EMI calculator. This tool may help you define loan terms and principal amounts. Make your payment plan less stressful using an EMI calculator for personal loans. Using an EMI calculator for a personal loan may prevent any calculation mistakes.

The equation below is to calculate EMI for personal loans:

EMI = [P R (1+R)N ] divided by [(1+R)N-1]

The terms represented are:

• P refers to the amount of the loan (Principal)
• R refers to the interest rate of the personal loan
• N refers to the tenor period of the personal loan

Example of Calculating EMI for a Personal Loan

Suppose you want to take a loan of Rs.15,00,000 at an interest rate of 10.0% and repay it over 60 months. In that case, you only need to input these values into the online calculator.

Here is the result:

Loan EMI = Rs. 31,871

Total Interest Payable= Rs. 4,12,234

Total Payment (Principal + Interest)= Rs. 19,12,234

The EMI calculator can calculate the monthly instalment you must pay back on a personal loan. This tool considers the values of the principal amount, the interest rate, and the loan span.

Knowing the interest rate your lender offers on a personal loan is better. With this, you can change the values for the principal and the term to make the EMIs fit your ability to pay. You can plan how you will pay back your loan this way.

Plan Your Repayment of Personal Loan with EMI Calculator

When you figure out your personal loan’s monthly payment, you’ll know exactly how much you have to pay each month. Your monthly payment on your loan will be more than enough to cover all your regular monthly expenses for the entire loan. This EMI calculator for a personal loan assists with money management. If you already have plans every month, it might be better for you to sign a longer loan. But keep in mind that the net interest payment will be more if the duration is longer.

The total cost of borrowing is the same for each payment plan. So, when the time it takes to pay back the loan is stretched out, the EMIs go down. By shortening the loan length, the EMIs would go up, but the sum of interest paid in total would go down.

Tips for Planning Personal Loan Repayment

• Put your EMI payments in a separate account to keep track of them.
• Always keep a calendar of due dates up to date.
• Give your choice of duration a lot of thought.
• Choose the lender with the most trust.

How to Use an EMI Calculator for Personal Loan?

The calculator for EMI is easy to understand, quick to use, and gives accurate results. Using this calculator, you can know how much you will have to pay for an unsecured loan each month.

To use the EMI calculator, put the following information in the correct fields:

• Amount of loan you want to take
• Loan duration (months or years)
• The interest rate (percentage)

The EMI calculators offered by several websites each have their own features. Some of these EMI calculators for personal loans have graphs and charts to help users understand and figure out the details of their loans.

You have to enter the values into the calculator’s sections. The calculator will work when you press the Enter key and show the results. You can reuse the online EMI calculator for personal loans as often as you want to change how much you pay each month.

Some EMI calculators also have pie charts, which make it easy to see how the different parts of the total payment fit together.

Entire payment = entire principal minus complete interest due

(It shows how much interest has been paid compared to the loan’s principal).

There is also a table in the online EMI calculator output that shows the schedule of payments. The table also shows how much is paid each month and each year. You can see how long the loan will take to pay off, as well as a chart that shows how the annual payments are made up of RI and principal.

A lump sum of each payment goes toward paying the interest during the first year of paying back the loan. Over time, charges cancel out more and more of the original debt.

Perks of EMI Calculator for a Personal loan Repayment Plan

Manually figuring out EMI payments each month takes a lot of work. But in just a few seconds, you can get precise answers with the help of an EMI calculator for a personal loan

Here are some good things about using an EMI calculator for a personal loan:

It saves time and gives accurate results

When you do math by hand, there is a chance that you will make a mistake, which will lead to the wrong answer. You can be sure that the results will be accurate and precise, and you will get them in a matter of seconds.

User-friendly and simple to use

These EMI calculators are the best in terms of how it works and how it is demonstrated. Because there aren’t any hard-to-understand fields, anyone who knows the basics of computers can type in the information and get the results.

Easy comparison of loans

EMIs depend on the interest rate, the amount of the loan, and how long the loan is for. The amount of the loan and the interest rate determine how much you have to pay each month.

You can maintain a good credit score

With the help of an EMI calculator for an unsecured loan, you can figure out the exact sum of the EMI payments every month. Because of this, you’re more likely to be able to make payments on time, safeguarding your credit score.

Conclusion

With the help of the online EMI calculator, you can figure out the right loan sum and term by putting in information about your income and expenditure each month. For easy and affordable repayments, you can adjust the principal amount and tenure of the loan. And after learning how an EMI calculator works, you may use one to choose a loan that meets your needs. Take the interest rate and other fees into account when applying for a personal loan.

To learn more about EMI calculators and repayment plans for personal loans, check Piramal Finance.