Loan Calculator

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Disclaimer: Whilst every effort has been made in building our calculator tools, we are not to be held liable for any damages or monetary losses arising out of or in connection with their use. Full disclaimer.

What is a loan calculator?

A loan calculator is a tool that calculates your loan tenure and EMI by considering your loan related properties. (Aquated monthly instalments), and principal interest charges etc. helps in determining the details.

How does a loan calculator work?

Loan calculator gives you a summary of your loan issue in one easy place. You can use the calculator to preview your options and follow your choices before getting a loan. You will be helped in determining the loan amount, interest rate and loan tenure.

Types of Loans

A loan is a process used with the objective of borrowing a business, personal or other asset. Loan tenure, interest rate and loan terms and conditions are evaluated. There are several types of them, the details of which are given below:

Loan calculator formula

PMT = [ r + r / ((1+r)(t -1)) ] x P

Where:

  • PMT = monthly payment amount
  • r = annual interest rate (decimal) / 12
  • P = principal loan amount
  • t = time in months

Loan repayment example:

To work out the monthly payment on a loan of $3000 at 5% interest for 12 months, we could calculate it as follows:

  • PMT = [ (0.05 / 12) + (0.05 / 12) / ( (1+ (0.05 / 12))12 -1) ] × principal
  • PMT = [ 0.0041666667 + 0.0041666667 / (1.004166666712 - 1)] × 3000
  • PMT = [ 0.0041666667 + 0.0041666667 / (1.0511618983 - 1)] × 3000
  • PMT = [ 0.0041666667 + 0.0041666667 / 0.0511618983] × 3000
  • PMT = [ 0.0041666667 + 0.081440816] × 3000
  • PMT = 0.085607483 × 3000
  • PMT = $256.83
  • Personal Loan:
    • Car Loan:

      This loan is given to purchase a personal vehicle.

    • Home Loan:

      Given to purchase a house, flat or house.

    • Education Loan:

      Granted to educational farmers or students for educational expenses.

    • Personal Loan:

      Provided for personal needs, not for specified use.

  • Business Loan:
    • Business Loan:

      Provided for business expansion, purchase of materials or other business incentives.

    • Business Credit Loans:

      Business construction, purchase of materials or provision of services.

  • Sectoral Loans:
    • Housing Loan to Poor (PMAY):

      Under Pradhan Mantri Awas Yojana (PMAY), healthy, clean and affordable housing is provided to the poor.

    • Agricultural Loans:

      People working in agriculture are helped for population development and agricultural processes.

Common reasons for taking out a personal loan

The activity of personal borrowing is at a time when there is an opportunity to live in debt or incur higher expenses. Many people come to a time when they need more money and in such contexts a personal loan can be a remedy. The following are the common reasons for taking personal loans:

  • For students' education:

    Some students have to travel further for education. But, along with listening to the penalty costs, personal loans can also be an option as a further measure.

  • Purchase of vehicle for trade or business:

    At times, individuals wish to have steps for purchasing a vehicle. In the coming era, more and more people enjoy arranging independently with a vehicle and in such situations opt for personal loans.

  • Everyday life:

    Some individuals try to advertise as a personal loan or even take out loans to support their daily lifestyle.

  • For Higher Medical Center:

    Sometimes, treatment of family members requires arranging for treatment of one family member at a tertiary care center.

  • Debt Repayment Efforts by Debt:

    Some individuals choose to take out a new loan to bolster their efforts to pay off the previous loan.

Here's a rundown of some of the common reasons for taking out personal loans. Individuals are interested in taking personal loans when they need more money and to make big decisions for personal clothing, building, or business. With great care on selection, personal loan can be an option in useful situations.