Loan Calculator — Calculate EMI, Affordability, Tenure & Interest Rate (2024)

FAQs

How to calculate tenure from EMI and interest rate? ›

If you know P, R, and EMI each month, then you can use the following formula to compute tenure. Interest per month = P * R / 12 Tenure = P / (EMI-Interest per month). You can use this calculation to arrange your funds efficiently and make well-informed decisions for their future.

Using a percentage of your income can help determine how much house you can afford. For example, the 28/36 rule may help you decide how much to spend on a home. The rule states that your mortgage should be no more than 28 percent of your total monthly gross income and no more than 36 percent of your total debt.

The formula to calculate EMI is P x R x (1+R)^N / [(1+R)^N-1] – where, “P” is the principal loan amount, “N” in tenure in months, and “R” is the prevailing interest rate.

Your tenure rate can be calculated by months, years, or other time periods. The sum of months worked by all current employees divided by the number of employees you have today equals the tenure of “stayers”.

EMI = P x R x (1+R)^N / [(1+R)^N-1], where P is the principal, R is the rate of interest, and N is the tenure. Enter the principal, tenure, and rate of interest to calculate the EMIs payable, and total interest payable and get a detailed amortisation schedule.

EMI Calculation Formula with Example

The lending institution has offered a loan with an annual interest rate of 7.2% for a tenure of 10 years. EMI = Rs 10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 – 1) = Rs 11,714. Hence, you will be paying the EMI of Rs 11,714 every month for 10 years.

Mortgage affordability is based around your monthly net income and outgoings, the current rate of interest being charged by the lender and a notional rate of interest which is supposed to reflect what might happen if mortgage rates increased over a fixed period.

FORMULA. The amount of interest, I I , to be paid for one period of a loan with remaining principal P P is I = P × r n I = P × r n , where r r is the interest rate in decimal form and n n is he number of payments in a year (most often n n = 12).

What is the formula for the affordability index? ›

Formula: ((PMT*12)/MEDINC)*100

Specifically, median family income estimates are based on the average of wage growth and last year's actual income growth.

The monthly payment on a $6,000 loan ranges from $82 to $603, depending on the APR and how long the loan lasts. For example, if you take out a $6,000 loan for one year with an APR of 36%, your monthly payment will be $603.

Most lenders prefer borrowers with a credit score in the good to excellent range (670 or higher), indicating a history of responsible financial management.

The home loan tenure directly affects the monthly EMIs. Here are a few key points to consider: Longer Tenure: Opting for a longer tenure results in smaller EMIs as the loan amount is spread over a more extended period. This can make the monthly payments more manageable, especially for borrowers with limited income.

What is the formula used for calculating simple interest? To calculate simple interest, the formula used is (P x r x t)/100 where P, r, and t stands for principal amount, rate of interest and tenure of the deposit in years.

To calculate EMIs and interest for Personal Loans using Excel, input the loan amount, annual interest rate and loan tenure into separate cells. Then, use the formula =PMT(B2/12, B3, B1) in the EMI cell where B2 is the interest rate, B3 is the tenure and B1 is the loan amount.

all you need are the details like the amount borrowed, interest rate, and loan tenure to calculate your monthly EMI. the formula for calculation is: EMI = [p x r x (1+r)^n]/[(1+r)^n-1] car loan calculator: the car loan calculator helps you determine your EMIs you pay to your lender.