Know How to Use EMI Calculator
An EMI calculator is a financial tool that helps you calculate the Equated Monthly Installment (EMI) you need to pay for a loan. The EMI is the amount of money you need to pay each month to repay your loan, which includes the principal amount and the interest on the loan.
To use an EMI calculator, you need to follow these simple steps:
Step 1: Gather information about your loan
You need to know the following information about your loan:
· Loan amount: The total amount of money you have borrowed
· Interest rate: The interest rate charged on the loan
· Loan tenure: The period for which the loan has been taken
Step 2: Visit an EMI calculator website
There are several EMI calculators available online. You can use any of them. Some popular websites include https://www.aavas.in/home-loan-emi-calculator
Step 3: Enter loan details
Enter the loan amount, interest rate, and loan tenure in the EMI calculator. Some calculators may also ask you to select the loan type and the frequency of the EMI payment.
Step 4: Click on the calculate button
Once you have entered all the details, click on the calculate button. The EMI calculator will show you the monthly installment you need to pay for your loan.
Step 5: View the loan repayment schedule
In addition to the EMI, the calculator may also show you the total interest payable and the loan repayment schedule. The loan repayment schedule shows you the principal and interest component of each EMI, the outstanding loan balance after each payment, and the total interest paid over the loan tenure.
Step 6: Experiment with different inputs
You can use the EMI calculator to experiment with different loan amounts, interest rates, and loan tenures to find the best loan for you. You can also compare the EMI for different loans to see which one is more affordable for you.
In conclusion, using an EMI calculator is a simple and efficient way to calculate your loan repayment schedule and monthly installments. It can help you plan your finances better and make informed decisions about taking a loan.