Published on *SelfGrowth.com* (http://www.selfgrowth.com)

By *Gurgaon, industrial Area*

On *June 11, 2020*

When you decide to take a business loan, you need to have a purpose and amount in mind. Only when you can identify why you need funds, you will be able to decide how much funds you need. You also need to have a loan duration in mind. You need to remember that a business loan should be repaid in EMIs over the tenure. However, as a borrower, you might not be aware of the EMI amount and before you sign on the dotted line, it is recommended to use a loan EMI calculator to get a quick estimate.

An Online EMI Calculator is a useful tool and it is available for free online. It will give you an instant estimate of the amount you will have to pay each month to repay the principal amount and interest. There are three variables that are essential in the calculator- loan amount, interest rate and tenure. If you have all the three variables, you can easily calculate the EMI payable. The best thing about the loan calculator is that you can change the inputs until you reach an optimal output.

How does a calculator work?

The EMI amount consists of two parts- accumulated interest and principal amount. The interest will be evaluated on the rate of interest which is agreed at the time of loan approval. The mathematical formula that the calculator uses goes by: E = P x r x (1+r) n / (1+r) n-1. Here, the E is the EMI amount, P is the loan amount, r is the rate of interest and n is the period of your loan. The calculation might get complex if you try to do it yourself. There are chances of mathematical errors and mistakes. This is why an online EMI calculator works for you. It will do the calculation within minutes and you will get an accurate answer.

You are only required to enter the loan amount and tenure and the calculator will take the prevailing rate of interest depending on the borrower you choose. The EMI amount will include interest so you will get an insight into the interest amount on the loan. If you think that the EMI amount is too high, you can change the input and check the difference. All the hard work will be done for you in one go and you can go ahead with your loan application.

The loan interest calculator will not only save your time but will make it easier for you to make financial decisions. It is ideal for financial planning. When you are aware of the amount of EMI and interest you pay each month, you will be in a better position to take decisions keeping your financial goals in mind. Business is a risky affair and needs cash flow every month. In order to be prepared for future expenses and the consequences of borrowing, you need to use an EMI calculator.

There are several benefits of using the emi calculator excel. Since it is available for free and takes only a couple of minutes to give you an EMI estimate, it is best used before making a loan application. Save your time and effort and make the right borrowing decision.

Author's Bio:

I am a professional blogger currently living in New York city, United states. I am an experienced writer who write and post content on various niche or industry.