10 Ways In Which An EMI Calculator Helps Plan Finance

An EMI calculator is a convenient accessory for your financial planning. EMI calculators have preset formulas which can calculate your repayment schedule for you for multiple types of loans. 

Types Of EMI Calculators

There are different types of calculators available for the calculation of different kinds of loans:

• Home loan 
• Car loan 
• Loan against property
• Gold loan 
• Personal loan 

EMI calculations are complicated. An online EMI is one of the easiest methods of planning your finances. There are various benefits to using an EMI calculator. The output is always correct and the data is available for you in tabular format for easy understanding. 

Here is how EMI calculators help you plan your finances with ease.

1. Easy Calculations

If you are amongst those who avoid financial planning due to the complicated and confusing calculations that come with it, you definitely need an EMI calculator. There are different formulas for calculating the correct EMIs for the different kinds of loans. 

An online EMI calculator is much easier than actually sitting down with a calculator and these formulas in hand.

2. Convenience

Why go for your pen, paper and calculator when you can easily make use of the online EMI calculators? These are simple to use, require just the necessary details and give you all the details about your spread for the tenure. 

Having the details for your EMIs with you can help keep a better track of your finances. 

3. Accuracy

EMI calculations involve a lot of elements such as the principal loan amount, interest rate, etc. which need to be put into formulas to get the right figures. Unless you are a math wiz, there is a possibility that you might miscalculate the amounts. 

Why get into it if you have EMI calculators easily accessible? An excellent online EMI calculator will also give you a comprehensive amortisation chart for your reference. You can rest assured that these calculations will be absolutely accurate.

Availability of accurate amortisation charts is essential when it comes to financial planning. 

4. Graphical Representation 

A graphic representation of your loan gives you information at a single quick glance when required. An EMI calculator makes creating such graphs easy for you. You also have this information available in tabular formats. 

Creating such figures and tables is very important when it comes to your financial planning. 

EMI calculator excel spreadsheets can be created for easy understanding. While you can calculate EMI on your own in excel, a preset EMI calculator tool is undoubtedly the simpler method. 

5. Choose the right lender

When you actually get onto your financial planning, you will definitely approach different lenders. Different lenders offer different rates of interest. With an EMI calculator, choosing the right lender becomes much easy. 

You can quickly calculate the amounts for comparative analysis for choosing your lender.

6. Calculate goals

Financial planning helps you be prepared for significant life events. EMI calculator just makes the planning process simple. Be it a wedding or your child’s education, you can use the EMI calculator to calculate the amount of money to be deposited monthly to reach your target corpus. 

7. Retirement Planning 

Retirement planning makes the most important financial planning goal. Calculating your retirement corpus differs slightly from your other goals. Retirement planning requires you to consider other factors such as:

• Time left till retirement
• Current expenses
• Life expectancy
• Inflation rate
• Expected rate of return during and after retirement

This is a tedious and complicated process that requires proper calculations. An EMI calculator is the best way to tackle all such complicated calculations. 

8. Home Loan

Planning on buying your home shortly? How do you ensure that your monthly EMI would not put a strain on your finances? Calculate your EMI well in advance to find out the amount that can be disbursed by you every month comfortably. 

With an EMI calculator, you will easily be able to understand the split between your principal amount and the interest that you will be charged. The repayment schedule of the loan is available for your reference. Making use of an EMI calculator will give you a clear picture of your total liability. 

9. Business Finance Planning 

An EMI calculator is a handy accessory for small businesses too. Liquidity keeps on fluctuating. When your business asset purchases depend on this liquidity, having a handy accessory is essential to calculate the ideal repayment methods. 

An EMI calculator helps plan expensive asset purchases like equipment, plant and machinery, land, etc. 

10. Loan Specific

The best part about EMI calculators is that these are loan specific. If you need the information to say a home loan, you can have it. So if you are planning different investments to fulfil your goal, it is quite readily available. Be it a car loan, home loan, or a personal loan; the EMI calculator can be used for all such calculations. 

An EMI calculator helps you make sound financial decisions. Repayments schedules that do not put a strain on your finances are essential and an EMI calculator is the best way to keep track of your finances.