How to Calculate Your Monthly Payable Amount Using Interest Rate CalculatorWith digital instant loan platforms, calculating monthly payable loan amounts is no more a difficult task. The hassle-free calculation using an interest rate calculator gives accurate results in no time. Knowing the interest rate beforehand can save borrowers from the financial burden of loan repayment and avoid delays in clearing EMIs.
A monthly payable amount is the equated monthly installment (EMI) to be repaid during the loan tenure. When you know the EMIs in advance, it is easy to plan the monthly budget. Imagine the other way when you have a tentative idea about the payable amount and on the due date the EMI comes up to more than you calculated. So, the interest rate calculator helps borrowers to stay away from such unpleasant surprises.
All those who apply for instant personal loans to cope up with various financial reasons should use the interest rate calculator to stay clear with the monthly amount payable. In simple terms, EMI consists of the principal loan amount, the rate of interest at which borrowers take the loan, and the tenure of the loan which pertains to the period over which the loan would be repaid by the borrower.
EMI FormulaEMI=P*R*(1+R) n
R=rate of interest
N=number of monthly installments
How the Interest rate calculator functions for determining the monthly payable amount?
The interest rate calculator is programmed to provide you the monthly payable amount (EMI) when you enter the principal amount, interest rate, and tenure of the loan.
If the tenure is longer, the monthly payable amount or EMIs will be less, but the interest rate payable will be higher. On the other hand, a shorter loan repayment tenure has higher EMIs and indicates a lower interest rate.
For Example, your loan amount is Rs.50,000 on an interest rate of 25%, for 12 months duration. So, the monthly payable amount using the interest rate calculator or loan EMI calculator will turn out to be RS.4,753. and the total repayment amount would be Rs.57,036 annually.
However, the interest rate may vary from lender to lender depending upon the market fluctuations and borrower profile.
How SimplyCash Interest Rate Calculator Works?SimplyCash an instant personal loan app powered by HeroFinCorp supports accurate calculation of the monthly amount payable using the inbuilt EMI Calculator. Borrowers can flexibly set the values to derive an EMI amount as shown graphically below:
The online calculation of monthly payable amounts using the interest rate calculator has simplified the lives of borrowers, especially for those who are not confident about manual calculations. The SimplyCash interest rate calculator gives borrowers the transparency about the monthly installments for a loan amount taken between Rs.50,000 - 1,50,000 through the SimplyCash app.
The kind of interest rate you choose becomes very important for balancing your budget and financial plans. While technology has altered the way loans are being disbursed, there are factors that affect your interest such as percentage of interest rate, credit scores, down payment, and loan type. So, borrow money wisely that you can repay easily even with the interest rate charged.