Everything you need to know about Personal Loan EMI Calculator

Personal Loan

21 February 2023

Everything you need to know about Personal Loan EMI Calculator

An online personal loan EMI calculator serves very obvious functions – making it easier for you to plan out your monthly loan instalments. The equated monthly instalment, after all, is a critical number determined by your loan amount and your loan tenure. It’s with this perspective that Fibe’s Personal Loan EMI Calculator was designed with the goal of enabling you to instantly calculate your pay-outs and therefore, plan your loan and repayment better.

How does a personal loan EMI calculator function?

Personal loans feature monthly repayments known as EMIs (equated monthly instalments) that cover the entire loan tenure with a fixed repayment tenure. But are you looking for how to calculate personal loan EMI formula?

EMI calculator is a tool that helps you in calculating EMI for personal loan on some fundamental data such as: 

  • The amount borrowed
  • The interest rate applicable to the loan and 
  • Tenure of the loan

At Fibe, you can use the Personal Loan EMI Calculator formula free of charge, any time and any day, to calculate personal loan EMI that fits into your budget.

Factors affecting personal loan EMIs

Some factors play a crucial role in your overall EMI amount payable. These include the following:

  • Loan principal – As the thumb rule goes, with tenure and interest rate remaining constant, the higher the amount borrowed as a personal loan, the higher your EMI.
  • Interest rate – The higher the interest rate, the higher your individual EMI payout and the total interest payable on your loan.
  • Tenure – When a longer-term is opted for, individual EMI payments will decrease compared to a shorter period for the same loan. But a longer-term also results in higher total interest payable over the loan tenure.

Besides, a lender’s method of interest calculation also affects the EMI payable on a personal loan. The flat balance method of interest calculation involves calculating interest on the principal loan amount throughout the loan tenure. Thus, in such a case, the EMI amount remains unchanged for the entire loan tenure. At the same time, the reducing balance method involves computing interest only on the outstanding loan principal amount for each successive month instead of the entire amount initially borrowed. 

As a result, the principal used to calculate interest decreases as the repayment tenure progresses, leading to a decrease in the successive loan EMI. Currently, most banks offer personal loans based on the reducing balance interest calculation method and the same process is used by Fibe’s Online Personal Loan EMI Calculator. 

Benefits of using a personal loan EMI calculator?

Some benefits that you should have an idea about while using a personal loan EMI calculator formula are:

Compare loans: Enter a fixed loan amount and tenure to vary the interest rate and processing fee depending on the rates set by the lender. That’ll give you a holistic idea regarding the total cost of your loan, which will then help you choose your personal loan product.

Time saver: EMI calculators are straightforward to use, take less than a minute to calculate your EMI amount and are 100% accurate. 

Choose loan term: To see which one is better suited for your financial health, vary loan tenures and compare your EMIs. If you are okay with paying higher EMI and would like to close your loan early, go for a shorter term. Otherwise, you can always opt for a longer-term.

Check your repayment schedule: Fibe’s loan EMI calculator also gives you a complete break-up of your repayment schedule. That way, you will get an idea of how much you’ll have to pay as interest and how much will be your principal outstanding.

Verify EMI details: You can attest to your repayment schedule as offered by the bank by using the EMI calculator. Other than that, you can also calculate the processing fee that you have to pay upfront.

Use the instant cash loan EMI calculator.

Skip the manual calculations. With Fibe EMI Calculator, you can precisely determine your interest charges, repayment amounts and more.

Fibe’s Instant Loan EMI Calculator is a reliable tool to determine your instant loan EMI within minutes and some simple steps. 

Follow this step-by-step guide regarding how to use the calculator:

Step 1. On the Fibe Personal Loan EMI Calculator page, input your desired personal loan amount.

Step 2. Provide the anticipated personal loan interest rate

Step 3. Choose a time period over which you want to repay your loan

On completing these steps, your personal loan EMI will be displayed instantly. You can also view the total interest payable and the total amount owed.

Fibe offers instant cash loans of up to ₹ 5 lacs with quick processing and minimal documentation. It offers interest rates as low as ₹ 7/day. This is by far your most compelling option of credit in the market. 

Plug your details to determine your monthly repayments based on your sanctioned loan amount and interest rates. It’s that easy to understand. With Fibe, you can even prepay your loan amount with no additional charges. Liberate yourself with #OneSmallStep.

FAQs about Personal Loan EMI Calculator

How is EMI calculated for a personal loan?

The EMI or Equated Monthly Instalment comprises your principal loan amount and the applicable interest charged on the loan. Simply put, EMI = The borrowed loan amount + interest. The interest amount depends on the tenure or repayment duration you choose. Considering these factors, your EMI amount is calculated.

What is the formula to calculate EMI?

While you can use a personal loan EMI calculator to compute your monthly loan instalments with ease, the mathematical formula applied to calculate your EMI is as follows:

EMI = P × r × (1 + r) n/ ((1 + r) n where P stands for the total loan amount or principal, ‘r’ means the interest rate applicable each month and ‘n’ implies the number of monthly instalments.

What are the factors affecting EMI?

Below are a few significant factors that affect your loan EMI amount:

  • Total loan amount
  • Loan repayment tenure
  • Interest rate

When you borrow a higher loan amount, you have to pay a higher EMI. The interest rate also directly affects your loan EMIs. On the contrary, a longer repayment tenure reduces your monthly instalments. However, it increases your total interest dues.

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