EMI Calculator Car Loan- The Perfect Tool to Calculate EMIs

A sense of excitement strikes us when we see a Swift Dzire going past the road, isn't it? Then we start wishing to buy a car of our own. This is when we start thinking of availing a car loan. Have you ever given a thought to what are the important factors you have to keep in mind while availing a car loan? If not then think.

The factors are loan amount, the rate of interest, tenure, and the monthly EMIs. It is always recommended to opt for a lender who can offer you a car loan at lower rate of interest. Presently the interest rates for car loan ranges from 8.70% to 15.5%. The repayment period for the same is between one to seven years. Whatever car loan interest rates you get, you can’t afford to overlook the EMIs you will have to pay. Availing a car loan without knowing about the installments you have to pay each month can shake up your entire monthly budget. I know this is harsh but true.

So how will you know about your EMIs? Let the guesswork begin. Still didn’t get it. Here’s the answer to the question- EMI calculator car Loan. Yes, you read it right. This tool has been designed to compute your monthly installments without much difficulty. This will make the entire computation work easy and simple. This article will throw light on how the calculator works.

It should be brought to your notice that majority of the lenders use a very complex formula of EMI calculation to determine the installments. The formula has been given below-

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here,

P means the principal loan amount

R means the rate of interest

N means the number of monthly installments

The formula seems to be confusing, right? You need not worry as car loan EMI calculator has been made to provide you every bit of information regarding your EMI. The calculator works in a very simple way. I believe you must be happy after hearing this. You just need to feed in information related to your loan amount, tenure and rate of interest. This will give you instant results regarding your monthly EMI and other useful information.

The tool is very beneficial for car loan applicants because it allows them to compare the monthly EMI of different lenders on the basis of their rate of interest. This means you will be able to decide accordingly without any confusion in mind. Let’s simplify it more with an example.

Suppose Vaishali wants to purchase a car and hence decides to secure a loan of Rs. 5 lakhs. After considering multiple options he chooses to go for a bank that offers him car loan at an interest rate of 9% for a tenure of seven years.

Now the burning question is what amount of EMI she will have to pay to the bank every month? This is where the car loan EMI calculator will come in handy. With the help of this tool, we can calculate not only the monthly installments but also the total interest payable and the total amount to be paid.

This will amount to a monthly EMI of Rs. 8,045 and a total payable interest of Rs. 1,75,741. This means Vaishali will have to pay a total amount of Rs. 6,75,741 in seven years to the bank in order to repay the loan.

There is no doubt that the EMI Calculator has made things easier for applicants who wish to calculate their monthly installments. Calculations can now be in few seconds and hence allow you to make sound financial decisions. You don’t have to use pen and paper anymore for computing your EMI. The manual calculation only means you have to recheck your calculations. The tool gives you a sense of satisfaction as it not only offers accurate results but also illustrates the same through the help of graphical representation.

I believe whenever you will avail a car loan you will never get confused about your monthly EMIs. after all EMI calculator car loan is there to the rescue.