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# Personal Loan EMI Calculator

Personal Loan EMI Calculator

#### Unifinn Personal Loan EMI Calculator

Unifinn Personal Loan EMI Calculator is a powerful online tool to calculate your personal loan EMI and the total interest cost you will be paying. It will help you calculate the EMI based on the loan amount, rate of interest and tenure as informed by your lender. You can compare the EMI with that of the lender to verify the lender’s offers are matching with the scientific calculations. It’s a simple tool to calculate your EMI. You only need to enter the loan amount, rate of interest and tenure to get the correct EMI amount that you need to pay.

#### What is an EMI?

EMI means “Equated Monthly Instalment” It is the amount payable per month if you take a personal loan for a certain period. The calculation of EMI depends on 3 main factors:

• Personal Loan Amount – The value of the loan that you take
• Personal Loan Interest Rate – The interest rate that the bank will charge for the Personal Loan
• Tenure of Personal Loan – The period for which you take the Personal Loan

The Equated Monthly Instalment (or EMI) consists of the principal portion of the loan amount and the interest. Therefore, EMI = principal amount + interest paid on the personal loan. The EMI, usually, remains fixed for the entire tenure of your loan, and it is to be repaid over the tenure of the loan on a monthly basis.

#### How does a personal loan EMI Calculator work?

An EMI calculator uses a simple mathematical formula to calculate your monthly instalments. The mathematical formula used for our Personal Loan EMI Calculator are:

= P x R x (1+R)^N / [(1+R)^N-1]

P = Principal amount of the loan

R = Rate of interest (Annual rate of interest/ 12/100)

N = Number of monthly instalments.

For example, if you apply for a Bajaj Finserv Personal Loan of Rs. 1 lakh at a rate of interest of 14% p.a. and for a tenor of 2 years, your EMI will be calculated as under:

EMI = 100000 x 0.01167 x (1+ 0.01167)^60 / [(1+ 0.01167)^60 ] -1 = Rs. 2,327.

The rate of interest (R) on your loan is calculated monthly (R = Annual rate of interest/ 12/100) which in this case is 14/12/100 = 0.01167.

You can easily check your EMI amount using our online EMI calculator for a personal loan.

#### What are the benefits of using a Personal Loan EMI Calculator?

• It provides advance knowledge about the instalment amount that a borrower is going to pay monthly. By using the online personal loan EMI calculator, you can know the amount needed to be kept aside every month for loan repayment.
• With prior knowledge of monthly EMI values, you can manage your finances around the EMI amount and tackle expenses accordingly.
• With the knowledge of the total principal amount and the total interest payable, you can use the calculator to choose a loan tenure you will be comfortable with.
• It provides a quicker accurate EMI calculation. Traditional manual methods of EMI calculation is time-consuming, complex, and often prone to errors. An online calculator offers accurate results within seconds.

#### What is Personal Loan Amortization Schedule?

Though the EMIs one pays to remain largely uniform throughout the tenure of the loan, the amounts repaid are credited towards the principal and interest to be repaid. Typically the initial instalments contribute more towards the interest amount with later instalments paying towards the principal.

An amortization schedule provides the break-up of these amounts repaid towards principal and interest. It also provides their respective balances through every year of the loan. It is the road map towards the repayment of your loan denoting the milestones and the ideal points you should be at through the cycle. 