Personal loan is a multipurpose, security free loan, which is extremely useful to manage your temporary financial mismatches. However, it comes with a high rate as compared to secured credit options like car loan or home loan. Currently, personal loan interest rates can range anywhere from 10.25 % to 24 % p.a. Additionally, it is a short-term loan that ranges anywhere between 1 and 5 years. Low duration and high interest rate convert to high EMI. Thus, you as a personal loan seeker must compute your EMI before you hit on the personal loan apply button. While there are various ways to compute your EMI, one of the most convenient and easiest ways is through a personal loan EMI calculator. 

Check out 5 ways how personal loan calculator can be useful: 

·       It is convenient, accurate and quick

While the personal loan EMI formula is straightforward, computing it on your own can result in errors that can put your plan in trouble. With online personal loan calculator, calculations are accurate and error free. Additionally, it is much faster than calculating it on your own. In just seconds, you can get your result. 

·       Adjust the variables with ease

One of the benefits of the personal loan EMI calculator is it allows you to adjust variable fields to view the impact on your personal loan EMI in real time. In case you think your EMI is higher than your repayment capacity, you can increase your repayment duration or reduce your personal loan amount to lower your EMI. 

·       Figure out interest outgo and principal repayment

Many of the personal loan calculators do not just provide you with the overall EMI but also give you the overall interest outgo component depending upon the values you entered. It allows you to ascertain the overall cost of availing a loan and overall interest payable.

·       Assists you to identify the impact of personal loan rate

Personal loan rate plays a crucial role in deciding your EMI and overall interest outgo. The calculator can quickly assist you understand the difference in EMI and interest component by adjusting the personal loan rate.

·       Know your monthly repayment schedule

Few EMI calculators offer additional features in the form of amortization schedule of payment. It assists you recognize what principal portion you will serve every month. Knowing your monthly repayment schedule can assist you plan out your finances better and assist you understand the correct time to pre close or prepay your loan if you want to do this in the future. 

Ending notePersonal loan calculator is a handy tool that is not just useful but even completely free. Additionally, it assists you compute your loan EMI, which further helps you make an intelligent and informed financial decision. Thus, before you apply for personal loan, always ensure to check your EMI using the calculator to understand whether it is within your repayment potential.