#### EMI Calculator - Calculate Loan EMI Online

Loanz99.com automate EMI calculators to help you get the exact EMI amount in a couple of seconds..

You just need to enter the principal, interests, and loan tenure to get a complete insight into the loan.

#### Let's discuss out here in detail:

##### What is an EMI?

EMI is a shorthand representation of Equated Monthly Installment. EMI is the amount the borrower pays to the lender(it may be a bank or any other financial institution) in the form of monthly installments in equal amounts until the total loan amount gets paid off. Generally, in EMI and the principal amount, the interest applied on the loan amount is added. After summing up the principal and interest amount, it's divided by the tenure of the loan(number of months the borrower agrees to repay the loan amount).

While following this procedure, lenders won't take the same amount of interest and principal amount. Instead, at the loan's initial period, the interest amount is higher and gradually reduces in the coming months of repayment. The amount of principal to be added is dependent on the percentage of interest rate. The borrower will not find any difference in the monthly EMI; the principal and interest amount gets adjusted with time. With every repayment of the EMI borrower, the principal amount will increase, and the interest amount will decrease.

Now, you might have got a clear insight into how EMI is calculated. We have the formula to calculate EMI.

Here's How Banks or Financial Institutions Calculate EMI :

#### EMI Formula:

Where

P is the principal loan amount
N is loan term/tenure/duration in the number of months.
R is the rate of interest calculated every month

Using this formula for different principal, interest, and tenure combinations is not so easy when you do it manually or using MS Excel. The result will not be accurate every time; you may experience human errors and time-consuming too.

Our Loanz99.com will help you deal with this; we have an online calculator that automatically calculates and provides results in a second, along with visual charts, the break-up of the total payment, and the displayed payment schedule.

#### Loan EMI Calculator

There are many situations in your life where you come across a sudden financial breakdown. Taking a loan without prior analysis will put you in unexpected danger. What if? By sitting at your place, you can get the complete details of the loan repayment and other benefits associated with it.

Using our Loanz99.com EMI calculator, you can quickly get the loan repayment details in just a click and accurately plan your future finances.

Though you have a list of EMI calculator providers online, you can't expect accurate results from every calculator. Considering the right provider will help you.

#### How to Use a Loanz99.com EMI Calculator?

Our EMI calculator is user-friendly; anyone with just the knowledge of principal, interest, and loan tenure can understand it. Our calculator provides colorful charts and instant results. Using our calculator, you can calculate the EMI amount for any loan such as Home, Personal, Car, Education, or any other fully amortizing loan.

You just need to enter the principal, interest, loan tenure, EMI in advance, or arrears(for a car loan).

You can use the slide option in the EMI calculator form to adjust the amount or directly enter the box's value. Our automated EMI calculator calculates the amount according to the adjustment of loan parameters.

A pie chart shows the break-up of total(total principal vs. total interest payable). It displays the percentage of total interest vs. principal amount in all payments made against the loan.

The payment table shows the payments made every month of the year for the complete loan duration is displayed besides a chart showing interest and principal value paid every year. Every payment is for the interest, while the remaining amount is applied towards the principal balance.

As discussed above, during the initial periods, the amount of interest is more than the principal amount. And with time, the principal amount will increase. The payment schedule also displays the outstanding intermediate balance for every year, which will be forward to the coming year.

You can even use our EMI loan calculator for different situations, such as in the case of-

• Prepayment of loan to reduce the tenure and Interest amount payable.
• Want to calculate how much loan you can avail
• Determine advertised vs. actual loan interest rate (Besides loan APR) on a purchase.

The most important thing to consider here is-

#### Which Type of Interest are You Adopting?

Generally, during the EMI calculator, we need to consider the interest type- floating or fixed. Based on that, you can get the exact amount. Otherwise, the amount you have calculated will not help you in planning your future finances properly. The banks and other financial institutions calculate the interest rates based on the guidelines and policies set by the RBI, and it changes for a frequent interval. As a borrower, you must have complete insights into possibilities you may encounter in the entire tenure of the loan repayment. These calculations will also help you understand how much EMI amount is affordable for you, how much you should borrow. and how long your loan tenure should be.

#### EMI Calculator – Frequently Asked Questions (FAQ)

Irrespective of the type of loan, you want to avail of either a secured or unsecured loan. You must have an idea of how much you need to pay before you avail of a loan. Here is where the EMI calculator will help you.

EMI calculators help you get complete insights into the EMI loan amount to pay so that you can plan your future finances accordingly. Using it, you don't have to do complex calculations manually, which is time-consuming too. It saves you valuable time. Ensure that your debt-to-income ratio is below 50% to maximize your chances of loan approval.

It reduces any miscalculation of human-prone errors and provides you with an exact amount for every EMI. The loan type helps you get the right amount in just a couple of seconds. Advantages of Using Our Loanz99.com EMI Calculator?

• It's completely free of cost. You can use it at any time, according to your requirement.
• We ensure 100% accuracy for our EMI calculator at every time.
• It provides a fast and accurate estimate in just a couple of seconds.

#### For Which Type of Loan I Can Use This EMI Calculator For?

You can use this online EMI calculator. For all types of loans which includes-personal, home, car, education, gold, or other types of loans. To start using this, you must know the principal, interest, and tenure of the loan.

#### How does the debt-to-income ratio affect my chances of availing of a loan?

The rate of getting approval for the loan is high when you have a debt-to-income ratio of less than 50%. Otherwise, the lender may consider you as not eligible for repayment of the loan.

#### What Does an EMI Include?

An equated monthly installment shows a part of your principal and interest payable amount. It has to be paid until the loan tenure completes. Otherwise, you can repay the entire amount as a one-time payment.

#### What happens if I fail to repay my loan amount /EMIs?

Banks or financial institutions levy high penalties on unpaid EMIs. For a missed repayment of EMI, you need to pay a bounce rate, and that missing amount will get added up in your principal amount, and for the next EMI, you need to pay the interest for that amount also. Other charges depend on the type of loans and your lender.

#### Why Are Online EMI Calculators Being Used?

EMI calculator will help you calculate the exact amount for any loan to make financial plans accordingly.

#### How to Reduce EMI Amount?

You can reduce your loan EMI amount in the following ways:

• Take a loan of a lesser amount.
• Find the best loan opportunities you have in various banks and interest rates.
• Make regular pre-payments.
• Transfer loan amounts to other banks with cheaper rates.

Still, if you have any doubts, you can contact our finance team. They will guide you in the right way.

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