A personal loan EMI calculator makes it easy to determine how much you can borrow, how much interest you’ll have to pay, and how much you’ll end up paying back. These tools are particularly helpful when shopping around for personal loans, so you know what to expect from each lender and how long the whole process will take. Read on to learn about the personal loan EMI calculator.
What is an EMI calculator?
This online tool can be used to estimate how much you might need to borrow for something, like a house or car. You enter in some basic information about your loan, and then it shows you the best rates for personal loans.
Find Out How Much You Need to Pay
An EMI calculator will break down your total loan amount into monthly installments that you need to pay. This is extremely helpful when looking for ways to save on interest and reduce your debt.
Calculating Emis Will Also Help You Calculate Your Loan Tenure
This will give you an idea of how long it will take you to repay your loan. Calculating your loan tenure will also tell you how much interest you will have to pay to settle your loan. This is an important figure since it can help you decide if it’s worthwhile to borrow or not. The higher your EMIs, the more interest you will end up paying.
It Will Help You Calculate Your Loan Interest Rate
This is an important factor that can help you decide whether or not to take up a personal loan. This means that when you start repaying your loan, you’ll have to make monthly payments. The amount and duration of these payments will depend on how much money you borrowed.
How to Use an EMI calculator
An EMI calculator can help you determine how much money you will be paying per month for an item based on your loan amount and interest rate. Here’s how to use one:
Step 1: Calculate your desired monthly payment by multiplying the number of months in which you plan to pay off your loan by your total purchase price.
Step 2: Enter that figure into your EMI calculator along with your loan amount and interest rate. If you buy a new car at 10 percent APR, enter $10,000 as your loan amount and 0.1 as your APR.
Step 3: Press Calculate to see your monthly payment.
While an EMI calculator can help you determine how much you’ll pay for any loan amount and interest rate, other factors can change your monthly payment. For example, if you choose to make extra payments or take longer than your scheduled time frame to pay off your loan, you will pay less money overall. However, these choices will also mean that it takes longer to pay off your debt. As per the experts at Lantern Credit, “It’s a good idea to compare personal loan rates from different lenders to find the best deal.”
Your personal loan EMI calculator enables you to easily compare loans from various banks and lenders, helping you find out which bank offers you the best deal. You can also use it to work out how much money you can borrow for your next big purchase or investment.