What is a Loan Calculator?

A loan calculator is an online financial tool that helps you calculate your monthly EMI (Equated Monthly Installment), total interest payable, and total repayment amount. It works for home loans, car loans, personal loans, and business loans.

How Loan EMI is Calculated?

The EMI is calculated using the standard formula:

EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ – 1)

Where:

• P = Loan Amount
• r = Monthly Interest Rate
• n = Total Number of Months

Benefits of Using Loan Calculator

• Instant EMI calculation
• Compare different interest rates
• Better loan planning
• Understand total interest burden
• Free and easy to use

Why Should You Calculate EMI Before Taking Loan?

Knowing your EMI in advance helps you plan your monthly budget. It prevents financial stress and allows you to choose the right loan tenure and interest rate according to your income.