Benefits of Using Personal Loan EMI Calculators Over Manual Calculations
5 min read | 2 months ago
You’ve just found the perfect personal loan offer, but calculating those EMIs manually feels like a math test you didn’t sign up for. Numbers, interest rates and endless formulas—no thanks!
Fortunately, online EMI calculators make the whole process feel like a breeze, saving you time and effort. In this blog, we’ll dive into the top reasons why these tools beat manual calculations any day. First, let’s learn a little about personal loan EMI calculators.
What are personal loan EMI calculators?
A personal loan EMI (Equated Monthly Instalment) calculator is a handy tool that helps you estimate your monthly payments when taking a personal loan. This online calculator simplifies the math by factoring in the loan amount, interest rate and repayment tenure. You simply input these values and the calculator instantly displays your EMI.
How do personal loan EMI calculators work?
Personal loan EMI calculators work by using a formula that calculates your monthly instalment based on three main inputs: the loan amount, the interest rate and the loan tenure. Here’s how it breaks down:
1.Input loan details:
You enter the principal amount you plan to borrow, the annual interest rate and the repayment period (in months or years) into the calculator.
2.Automatic Calculations
The calculator then applies the EMI formula, which is:
EMI Amount = [P x r x (1+r)n] / [(1+r) n-1]
where P is the loan amount, r is the monthly interest rate (annual rate divided by 12) and n is the number of monthly payments.
3.Instant EMI and amortisation schedule:
Once you hit calculate, the tool instantly shows your EMI amount. Many calculators also provide an amortisation schedule, which breaks down the interest and principal portions of each payment over the loan tenure.
Using these inputs, the calculator shows your monthly payments, making it easier to assess how different loan terms or interest rates affect your EMI. This process is much faster and more accurate than manual calculations, helping you plan finances and compare loan options efficiently.
Why choose personal loan EMI calculators over manual calculations?
Here are the benefits of calculators for evaluating the EMI of your personal loan:
1.Timesaving and convenience
Online EMI calculators quickly generate results with just a few clicks. Unlike manual computations, which involve formulas and extensive calculations, these tools let you input the loan amount, interest rate and tenure to get an instant estimate. This convenience saves you from spending unnecessary time on complex math.
2.Accuracy and precision
Manual calculations can lead to errors, especially when dealing with multiple variables like interest rates and loan terms. Online EMI calculators use algorithms that provide accurate results. This precision helps you avoid mistakes, giving you peace of mind about the reliability of your EMI estimates.
3.Informed decision-making
EMI calculators provide a complete breakdown of monthly payments, interest costs and total repayment. This transparency enables you to make well-informed decisions by understanding the financial impact of different loan options.
4.Flexible loan planning
With online calculators, you can experiment with various loan configurations. For example, you can see how increasing the loan amount affects the EMI or how reducing the tenure impacts total interest costs. This flexibility helps you choose a loan structure that aligns with your financial situation and repayment capacity.
5.Easy comparison of loan options
Online calculators allow you to compare various loan scenarios by adjusting inputs like the loan amount and tenure. For instance, if you are unsure about the loan term, you can quickly see how different options affect your EMI. This feature helps you find a repayment plan that suits your budget and financial goals.
Endnote
You can use the personal loan EMI calculator to calculate the instalments of the personal loan from Unity Small Finance Bank as often as you like. There are no fees or limits. It’s smart to play around with different loan amounts and repayment terms to see which suits your budget best. Just add your loan details and you’ll get an estimate right away.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
