EMI Calculator

Samco EMI Calculator – Calculate Your Loan EMI Instantly

An EMI calculator is a free online tool that helps you understand how much you will have to pay as your monthly instalment to repay your loan. Most loan EMI calculators are available free of cost online. You simply need to enter a few basic details about your loan, and the online tool will compute the amount you need to pay back each month.

Whether you are planning to obtain a new loan or you want to restructure an existing loan, an EMI calculator can help you figure out the ideal terms of the borrowing, depending on your budget. Today, these calculators are available for different types of loans — including personal loans, home loans, car loans and more.

In this article, we explore how a loan EMI calculator works, what its benefits are and how to use it, among other things.

How to Use an EMI Calculator?

Using an EMI calculator online is extremely easy. No matter which platform you choose, the basic steps involved in computing the EMI are generally the same. Here is a step-by-step guide to using a personal, home or car loan EMI calculator online.

• Step 1: Enter the amount you have borrowed as a loan. This is the principal amount.
• Step 2: Enter the interest rate per annum. This may be an estimate if you have not received a final loan offer.
• Step 3: Enter the tenure of the loan in years. Some calculators may require you to submit this detail in months.
• Step 4: Submit these details online.

Once you do this, the EMI loan calculator determines and displays the EMI amount you need to pay each month. Some calculators also show you the total principal, total interest and total amount payable during the loan tenure.

Factors Affecting EMI

The EMI that you need to pay each month depends on the following factors.

• Loan Amount: This is the amount borrowed through the loan. Also, known as the principal, it is directly proportional to the EMI. The more you borrow, the higher your EMI will be.
• Interest Rate: This is the rate at which the lender charges interest on the principal amount. A higher interest rate means higher EMIs to pay throughout the repayment duration of the loan.
• Loan Tenure: A longer loan tenure means that you will have to pay more interest overall. However, the EMI payable each month reduces as the tenure increases.

The Formula for EMI Calculation

Using a loan EMI calculator is easy. However, it also helps if you know the formula that an EMI calculator uses to find the amount you need to pay each month. This will help you understand how the different parameters affect the amount payable.

This is the formula that an EMI calculator uses.

EMI = [P x r x (1 + r)n] ÷ (1 + r)n — 1

Here is what each letter in the formula signifies:

- P is the principal amount borrowed

- r is the interest rate per month

- n is the tenure of the loan in months

EMI Calculation Example

Let us explore an example using the EMI calculator formula outlined above to better understand how the computation of equated monthly instalments works. Say you have borrowed Rs. 5,00,000 as a personal loan at an interest rate of 12% per annum. The repayment tenure for this loan is 5 years or 60 months. So, the EMI for this loan can be calculated using the formula as follows:

EMI

= [P x r x (1 + r)n] ÷ [(1 + r)n — 1]
= [Rs. 5,00,000 x 0.01 x (1 + 0.01)60] ÷ [(1 + 0.01)60 — 1]
= Rs. 9,083.48 ÷ 0.8167
= Rs. 11,122.22

This EMI has to be paid for 60 months to repay the loan entirely. Many lenders will also offer you the loan amortization details. Typically, this will give you insights into the amount of interest and principal repaid each year. For the loan in the example discussed above, the loan amortization table will likely appear as follows:

Types of EMI Calculators

All loan EMI calculators typically work in a similar manner. However, depending on the type of loan you opt for, you can choose from different kinds of EMI calculators to use. The most common types of calculators available today include the following:

• Home Loan EMI Calculator: A home loan EMI calculator helps you determine how much you will have to pay each month to close your home loan. This is useful if you want to purchase or construct a house and intend to finance this milestone using a housing loan.
• Personal Loan EMI Calculator: A personal loan is an unsecured loan that requires no collateral. You can avail of this facility if you need to meet emergency financial requirements. With a personal loan EMI calculator, you can find out your monthly instalment amount easily.
• Car Loan EMI Calculator: A car loan EMI calculator can be useful if you want to purchase a new car or a used car by opting for a loan. With this free online tool, you can determine the amount payable as EMI during each month.
• Business Loan EMI Calculator: Business loans are often structured differently depending on the type of financing you opt for. Business loan EMI calculators can help you understand the amount payable each month, so you can budget your finances accordingly.

Benefits of Using SAMCO EMI Calculator

When you use a loan EMI calculator to find the amount payable each month, you also get to enjoy the following advantages.

• Quick and Accurate EMI Calculation: An online EMI calculator instantly computes your monthly payments precisely, without any manual errors. It eliminates guesswork and helps you make informed decisions. You just need to enter the loan amount, interest rate, and tenure— and you get accurate results within seconds.
• Easier Financial Planning: A loan EMI calculator also makes it easier to plan your finances as it estimates your monthly obligations beforehand. This allows you to borrow within your repayment capacity and avoid any financial strain. By adjusting the loan parameters, you can evaluate different scenarios and choose an EMI that fits your budget comfortably.
• Loan Comparison: Using a home loan or personal loan EMI calculator, you can compare multiple loan offers effortlessly. You can just change the loan amount, interest rate, or tenure to determine the best option for lower EMIs and overall affordability. This helps you choose the most cost-effective loan for your needs.
• Less Time and Effort: A personal loan EMI calculator simplifies the borrowing process by providing instant calculations and reducing reliance on complex formulas or manual spreadsheets. With just a few inputs, you can make informed decisions quickly and avoid lengthy calculations. This minimises the effort required to evaluate different loan options.

To quickly find out the EMI payable for your loan, check out the EMI calculator from Samco Securities. In addition to EMI calculators, you can also find a wide range of other financial planning tools on the Samco Securities website — like SWP calculator, margin calculator, income tax calculator, compound interest calculator and more.

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