Why using an EMI calculator before applying for a personal loan is vital?

Ajitsamal Afinoz
3 min readOct 30, 2020


You never know when you are going to face a financial contingency throughout your life. A personal loan stands out as your best fellow at that time but you should be prepared for it in order to avail it without any hassle at the time of an emergency and that is where a personal loan calculator comes out in front.

It is always a smart choice to check your EMI amount using a personal loan EMI calculator before applying for it. The calculator will not only tell you about your monthly repayment amount but also it will educate you on how much interest you will be payingthroughout the loan term. Let’s take a look at some of the major factors you should know about a personal loan EMI calculator alongside its importance.

Required elements for personal loan EMI calculator

Regardless of the EMI calculator that you are going to use, whether it is ICICI personal loan calculator, HDFC personal loan calculator or any other. To use the personal loan EMI calculator, you are required to input only these 3 common elements: -

  • Personal loan amount
  • Personal loan tenor
  • Rate of interest

Post entering the figures, the calculator initiates calculating the EMI amount on the basis of the following formula:

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


P = Principal loan amount

R = Monthly rate of interest

N =Number of monthly instalments

Significance of personal loan EMI calculator

The significance of using a personal loan calculator prior toapplying for a personal loan are as follows:

Easy, convenient, fast and precise

The online EMI calculator can perform complex computations within the matter of secondswhich helps you make an instant decision about the personal loan. Since there is no human interference, the calculations are 100% precise.

Helps you plan your EMI payments

If you compute your EMIs prior to enrolling for a personal loan, you are gearing up yourself well beforehand for your loan repayment.

Helps you make changes in your expenditures

If you get to know about your repayment amount, you are in a better position to perceive how your life and expenditures are required to be altered once the EMI comes across.

Self-learning instrument

Finance computations engages figures and formulas that are generally complicated. A personal loan EMI calculator makes complexcomputations easy for you to perceive.

With just a few information you find out your EMI amount and the interest amount to be paid by you every month across the loan tenure.

The calculator will also function upon the break-up of EMIs — the interest and the principal amount, which you would be required to pay per month.


As a conclusion, whether you are seeking for a personal loan from HDFC, SBI, Kotak or an ICICI Bank personal loan or a personal loan from any other financial institution, you do not have to go to a financial expert or bank to make the computation for you.

A personal loan calculator helps you throughout all the figures you need and shows all the data on the screen for you to comprehend, examine and plan accordingly.

Originally published at http://ajitsamal.wordpress.com on October 30, 2020.



Ajitsamal Afinoz

I am a diligent and motivated self-worker with 3+ years of experience working in credit review and loan processing within the financial tech industry.