Calculate Simple Interest using a Loan calculator


When it comes to a loan, everyone seems a little bit confused. You must be worrying about the different variables of interest charge. Calculating it might seem a hazy task to you. But there is no need to worry. You can seek the advantages of an online loan calculator that makes your task easier. With the interesting loan calculators, you can now calculate the personal loan interest amount in a very simple way.

 

How to calculate simple interest using a loan calculator 


All of the loan calculators that you use provide instant results based on simple interest rate formula. The formula is I = P * r *T where I stands for interest the amount, P for the principal amount that you are taking as a loan amount, r stands for rate of interest on which the lender is providing you the loan and T stands for the tenure in years for which you are going to take the loan.

 

For example, if you are taking a personal loan of INR 1 Lakh for a tenure of 3 years on a flat interest rate of 8% per annum.

 

So, your total interest amount using a personal loan interest calculator will be: I =100000*8*3/100 = 24,000. Hence, on this repayment of 1 Lakh loan amount, you will have to pay an interest of 24 thousand in three years.

 

Let’s calculate the monthly payment amount now

 

Along with this, you can also check the monthly payment amount by dividing the total amount by the months for which you are taking the loan. For the above calculation, we can now divide this 1 Lakh 24 thousand into 36 months and it results in INR 3444.44. This amount of 3444.44 is what you have to repay on monthly basis to your loan provider.

 

The amount calculated above may vary here and that is in terms of the loan processing fees and GST, if applicable. Different lenders have different terms and conditions related to personal loans and you need to have crystal clear information when communicating with the representative.


Must Read: All you need to know about an EMI calculator


Words of Wisdom: Use an online loan calculator in sync with the proposal you have got from the service providers and decide what suits best as per your income and repayment goals.

 

Always remember, a reputed personal loan providing institution will never confuse you and they will provide instant answers for all of your queries.



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