EMI calculator by eCoder is a beautiful Android application which calculates the monthly EMI for us. No need to break our head to calculate EMI's using pen and paper. Just download and install this beautiful application which will do the job for us. This is a mobile application of famous EMI calculator website http://emicalculator.net/. Input few data such as loan amount, interest rate and tenure. Application will automatically calculate the EMI and present it to us in a graph. It generates a pie-chart showing the split between principal, interest, extra payment, other fees and charges. Also it generates a EMI payment / year bar graph. Payment schedule section shows year wise payment structure. All this will help us understand the dirty and tedious calculation about the loan. For the benifit of the user this application has another section where users can directly apply for loan. Once you select the type of loan, control will be redirected to their website. "Applying for loan" feature is limited to India I believe. Below screenshots demonstrates how information is presented through pie and bar graph.
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| EMI calculator |
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| EMI calculator |
I picked up following information from their website which explains how EMI is calculated
Here’s the formula to calculate EMI:
where
E is EMI
P is Principal Loan Amount
r is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
n is loan term / tenure / duration in number of months
For example, if you borrow
10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI =
10,00,000 * 0.00875 * (1 + 0.00875)
120 / ((1 + 0.00875)
120 – 1) =
13,493. i.e., you will have to pay
13,493 for 120 months to repay the entire loan amount. The total amount payable will be
13,493 * 120 =
16,19,220 that includes
6,19,220 as interest toward the loan.
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