An EMI (Equated Monthly Installment) calculator is a digital tool that calculates the
monthly installment payable on a loan. This calculator takes into account the loan
amount, interest rate, and tenure of the loan, and provides an estimate of the
monthly EMI payable. The EMI is the fixed amount that a borrower needs to pay to the
lender every month until the loan is fully repaid. An EMI calculator is useful for
anyone looking to take out a loan, as it helps them plan their finances and
understand the affordability of the loan. By using an EMI calculator, borrowers can
adjust the loan amount, tenure, or interest rate to arrive at an EMI that fits their
An EMI (Equated Monthly Installment) calculator is a useful tool that can help
borrowers in several ways, such as:
Planning finances: An EMI calculator helps borrowers plan their finances by
giving them an estimate of their monthly loan repayments. This allows them to
budget their expenses accordingly and avoid any financial strain.
Comparing loan options: With an EMI calculator, borrowers can compare different
loan options and choose the one that best fits their budget. By adjusting the
loan amount, tenure, or interest rate, borrowers can see the impact on their
monthly EMI and make an informed decision.
Understanding the cost of borrowing: An EMI calculator provides an estimate of
the total interest payable on a loan, which helps borrowers understand the
overall cost of borrowing. This can be useful in deciding whether to take out a
loan or not.
Preparing for prepayment: Borrowers can use an EMI calculator to estimate the
impact of prepayment on their loan. By entering the prepayment amount, borrowers
can see the reduction in their loan tenure or EMI, which can help them plan
their prepayment strategy.