Loans are an advantage to today’s middle class salaried people who wish to live a luxurious life without giving away a large chunk of their income, but pay out the money gradually without denting their assets. Most banks and some other financing institutions provide attractive interest rates for applicants in need of finance.
The most important factor of any loan is the EMI or Equated Monthly Instalment which is a combination of principal loan amount and the interest due each month until the full repayment of the loan along with the promised interest. Calculating the EMI before loan application is very important.


A loan EMI calculator employs the following formula:
EMI= {(P*i) * (1+i) ^ N} / {(1+i) ^ N - 1}
Where p= principal loan amount
N= instalments
i= interest rate that is demanded by the bank or lender

But the process isn’t that simple. There are various factors that need to be considered before calculating EMI precisely. An erroneous calculation can lead to much greater problems. This is why an online loan EMI calculator is required to give accurate results in consideration with different parameters for all loan, be it car, home of personal. All you need to do is enter the values, and the rest is done by the calculator using inbuilt algorithms and formulas. It displays the EMI along with the total interest payable at the end of the tenure and the total number of payments. These calculators do not require your physical presence at the bank and you can all the information from the comforts of your home.