We all want to increase our wealth and save for future. For that we invest in various investment schemes. Managing money properly needs some calculations and awareness. Calculation is needed to estimate the return and find the right amount for investment. Awareness is required because time to time government regulate monetary bills and based on that financial institutions launches various schemes. Proper understanding of both will create wealth for us. Now coming to our topic, **“Personal Loan EMI Calculator”**. Most of the people buy their car or home through bank finance. Banks provides **Car loan** for vehicle buying and **Home loan** for home/flats buying. For both the loans banks fixes the **EMI** i.e **Equated Monthly Installments** and the time period of payments. We usually take home loan or a car loan due to shortage of funds . Everyone wants to repay his or her loan as soon as possible to get free from liabilities. Therefore we want to optimize the loan amount and EMI value so that it does not become a burden. For this we need an emi calculator, because at bank nobody gives time to entertain us in this regards. A personal loan emi calculator is more useful than an online emi calculator. I have designed one such **Excel based personal loan emi calculator** which is fully customized in the way we require the output. This calculator is basically for Home loan optimization but it can be used for car loan also.You can download the calculator from the link given at the end. It is also available in ‘Top Download’ section on Side panel.

The main requirement of personal loan emi calculator is to guide us on the financial figures before going to a bank. With this we can fix our Loan figures and EMI values. Simply we require the ongoing interest rates of bank.

## Calculate EMIs

The simple calculation it will do is to find the EMIs for the given loan amount, tenure and rate of interest. It also calculates the total Interests and Principal amount to be paid for repayment of loan. It shows the division in a Pi-chart for clear understanding. Why we stressed upon EMI values ?? because, EMIs are fixed once for all, and whether it is a burden or grace is a matter of deep thinking for all of us.

## Compare EMIs

This option is given to compare EMIs by keeping three different tenure. Some people suggest to keep longer period for loan and some suggest to complete the loan as soon as possible. Therefore in this tool you can compare the EMIs for three different tenure or loan amount, and select the EMIs that best suits as per your income.

## Plan Your Pre-Payment Schedule and Decide for Higher Tenure of Loan

Banks give options of **partial payment**, where you are allowed to partially repay your loan. Some people use this option when they get any extra income or yearly bonus. When we opt for partial payment the bank generally keep the EMIs unchanged and reduces the total nos of EMIs. This is a good option that gives us freedom to repay the loan before its full tenure and avoid burden of interest. In the **personal loan emi calculator **one can calculate the reduced nos of EMIs by selecting the partial payment option. Select the partial payment schedule and calculate the remaining Principal and Interests. Using this calculation one can decide to keep higher tenure say 25 years or 30 years and keep lower EMIs. Later on try to repay the loan using partial payment option.

## Finally Calculate Break-Even to Sell Your Property

We buy any property either for self use or for investment. If we buy for self occupancy than we should try to finish the loan as soon as possible to reduce the interest amount. A house bought on home loan becomes twice as costly as we buy on cash. But if we are buying for investment purpose than we should really do some maths to find the right price and right time to sell the property. In the **personal loan emi calculator** you can calculate the total worth of any property bought on loan after certain period. One can also calculate the **break even price of Home**, so that he can sell the property at better price at right time.

## How to Run: **Personal Loan EMI Calculator**

A help instructions is already mentioned in the Program. Just after opening/launching the program click on Enable Editing, and the program is ready for calculations.

#### #We can also customize this tool for you, just write your opinion in comment box.

Very handy excel Sheet. I need this to transfer my loan . it is very helpful. Thankyou so much.

This is really very helpful in calculating EMI on personal loan. Last year when I had taken personal loan from bank, I was somewhat confused to calculate it’s monthly EMI, although bank has cleared me but I want to cross check it. I asked my friend and he told me below mentioned mathematical formula for calculating it’s EMI:

[P x R x (1+R)^N]/[(1+R)^N-1

where P stands for the loan amount or principal,

R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)],

and N is the number of monthly instalments.

This basic formula works behind EMI calculator.

Source: emicalculators.in