10 Reasons Why the EMI Calculator Is Awesome

There comes a time in our life when we are hit with expenses that threaten to cripple our finances or promise to leave our dreams in shambles because the capital required to fulfill them is beyond our capability. It’s at times like these that loans come in handy. What’s even better is that if you have an EMI calculator to help you through the calculations.

If you are about to take a home loan or a personal loan or even a car loan, the biggest questions on your mind are, “how much should I borrow and how much will I have to pay back?”

There is no point in taking a loan, the repayments of which will destroy your financial stability. Neither is there any point in jumping into a loan with just a rough idea of how much you have to pay and when. The best thing to do is sit down, use a loan EMI calculator and figure out exactly why you are getting yourself into and that is why EMI calculators are awesome.

If you are still not convinced that they are the best things ever for financial planning, here are some more reasons.

They Are Easy To Use

It does not take a PhD in finance to operate an EMI calculator. Its literally is as simple as entering a few numbers or adjusting a couple of sliders and having the exact EMI presented to you in seconds.

No More Paper Work

There was a time when you’d have to sit with a bunch of papers and a pen to manually calculate what the EMI for your personal loan or car loan will be. Then someone would come and switch on the fan or spill coffee on your hard work and all the calculations would need to be done all over again. But that is not the case if you use an EMI calculator.

EMI Calculators are Accurate

Let’s go back to those pen and paper days for a second. Imagine that you have just finished calculating your EMI for a home loan but something is not right. The EMI amounts to much more than what you had imagined and then you realize you made a mistake in step 2 of the calculations and all your efforts were in vain and must be repeated. With EMI calculators, even if you make a mistake it takes less than a second to correct it and get the right result.

Minimum Information Required

Most EMI calculators need just four pieces of information to work. The loan amount, the interest rate, the tenure of the loan and the banks processing fee. Just feed this information into the calculator and watch as it gives you your exact EMI for the loan.

Endlessly Adjustable

So you put in some number for a loan and came up with an EMI of Rs.25,000 per month when you earn only Rs.35,000 a month!! Relax! You can change the amount of the loan, the tenure or even the interest rates to bring the EMI down to a more acceptable level.

Detailed Breakup of Expenses

Some EMI calculators don’t just stop at telling you your EMI. They go a step further and even give you a breakup of the payments you will make. This may include information about how much principal is paid, how much interest is paid and how much the processing charges are.

More than Just an EMI Calculator

If you think the break-up of expenses was good then you will love this. There are EMI calculators out there that will give you all the details of your loan amortization too. They will show you how much principal and how much interest will be paid each year as the loan progresses.

Save Time

Since the EMI calculator is fast and easy to use, you now have time to spend with your family instead of wasting your weekend, locked away calculating EMI’s and loan amortizations.

Better Planning, Save Money

Another thing that the EMI calculator gives you is the opportunity to make sure you plan your expenses just right so that the EMI for your car loan or home loan does not take away the lion’s share of your monthly income.

Easy Comparisons

With the EMI calculator it now takes just a few minutes for you to take the loans offered by different banks and compare their EMI’s to figure out which banks offer is the best.

If you are still not convinced that EMI calculators are the saviors of the world of loans and repayments then you need to go and use one. Trust me, the moment you use it, you will realize just how amazing an EMI calculator for loans can be.