Loans are the ideal way of securing additional funds and come handy during emergencies. Be it a wedding, purchasing a house, there is a loan for every requirement. However, every loan needs to be repaid timely, and this could get challenging if you do not calculate the EMIs and have a financial plan in place.

An EMI calculator is there for this exact purpose. While the interest rates could be a tough cookie to crack, calculating the overall interest and the payable amount helps decide the principal amount for the loan.

The loan calculator helps determine how much you need to repay to the lender – a bank or financial institute. These instruments are super useful and here is how –

• The formula for calculating EMI is challenging when done manually. It involves several parameters. Reducing the balance method of EMI calculation, for example, deals with facets that need time, especially for repeated calculation. Hence, use the calculator for an accurate result.
• Change the loan tenure and the principal amount for understanding the resulting change in the EMI that you incur monthly. With the help of calculators, adjust the parameters until you reach the EMI amount, you are confident of paying.
• EMI calculators are more accurate as opposed to excel calculations. Moreover, individuals calculating the monthly instalments with the formula may miss or make an error in calculation. Use the EMI calculator that is pre-defined and make sure such errors do not happen.
• The calculators calculate EMIs for different loans which you may have shortlisted from different lenders. Calculators make these easy for the loan applicant as they can calculate, analyse, and compare proposals before finalising the right one.
• The loan calculator also has the option which allows you to see and download the amortisation schedule. Use them to track your monthly payments over the complete life of your loan. Additionally, you can carry this to prospective lenders and request for competitive quotes.

Using the EMI calculator helps determine the EMI, which keeps you ahead of the debt and makes sure the overall finances are well-planned and in place. Do not worry about paying the debts and being on-time with payments when you have pre-planned the investments and calculated EMIs. Loans might be taken in need of the hour or during a crisis, but an effective plan helps you come out of a problem quickly.