What does EMI mean?
An EMI or equated monthly instalment is a fixed amount that is made by the borrower to the creditor or lender. On a specific date of each month. Equated monthly instalment is the monthly payment amount that we pay with interest and principle toward the loan we took in a specified time. Interest and principal are applied on (EMI) every month so that the taken loan can be paid off. For instance, Rohan has borrowed a certain amount of money from Akash and Akash is not able to pay the borrowed amount to Rohan in one shot. Rohan offers him that if you can not pay the full amount in one attempt, you can pay it in certain divided parts of the amount with specified interest over a period. This is called EMI or equated monthly instalment.
What is an equated monthly installment (EM)I calculator?
An equated monthly payment (EMI) is software that helps you to estimate the amount you are paying back to complete your loan. This calculator can evaluate the EMI amount on a taken loan. It can be a home loan, car loan, personal loan, or education loan. EMI calculator has a very simple and easy-to-understand interface. There are three slides given in the calculator with loan period, loan amount, and the interest rate. You need to fix the sliders according to your amount or specified time and the EMI calculator will show the total amount payable with interest. It is that much easier to calculate your EMI within seconds.
How is EMI calculated?
There is a formula to calculate the monthly amount payable to the lender. The formula is given below.
P x R x (1+R)^N/[(1+R) ^ (N-1)]
Here, P, R, and N are the values that can be changed according to your EMI needs. If you change any of the above values, you will get a different result of the monthly payment amount each time. “P” stands for loan amount or principal amount in formula. The amount which is lent to you by the lender, creditor, or bank. It depends on the amount of the loan and whether the EMI amount will be higher or lower. “R” denotes the “Rate of interest”. This is the rate at which the principal loan is charged with interest. The rate of interest plays a big role in your (EMI) equated monthly amount so before option loan make sure you discussed it with the lender or bank. “N” stands for the number of years. It denotes the years within which the borrowed loan needs to be repaid. This time provided by the lender or bank is known as “tenure'' (total period for making the repayment of the taken loan). As the EMI or equated monthly installment is made every month then tenure is calculated in months despite years.
For instance, Let's have a calculation to understand how an EMI calculator works. Ankit has taken a loan of 2,00,000 for the time of 2 years at an interest rate of 10%.
We know that, [P x R x (1+R)^N/[(1+R) ^ (N-1)]
P = 2,00,0000
R = 10 % ( Rate of Interest)
N = 2 Years (tenure)
[2,00,0000 x 2,00,0000 x (1+10 )^2/[(1+10) ^ (2 -1)]
Total Payable Equated Monthly Instalment (EMI) is = 17,583
How to use the Myitronline EMI calculator?
Myitronline EMI calculator is a simple and easy-to-use utility software for your EMI calculation. Anyone can operate it and can get the result in a few seconds.
- Type Myitronline in the search bar and scroll down to the bottom or go to the section of the calculator, there you will see the EMI calculator, click on that to open the calculator.
- You will be redirected to the page of the EMI calculator. You have to set the given sliders or put the loan amount, loan period, and interest details.
- When you are done with all the details asked to fill out. The EMI calculator will automatically show you the result of the amount you have to pay with interest within the specified time.
Benefits of using Myitronline calculator?
Equated monthly installment or EMI is an integral part of loan repayment. You need to be accurate to calculate the EMI amount to escape any mistakes so here we are with the Myitronline EMI calculator that makes your process effortless with straightforward accuracy. You can use the Myitronline EMI calculator from anywhere at any time without moving out of your comfort zone. A plan must be created for your EMI before taking any loan so our calculator helps you to plan your budget and financial expenses.