How to calculate EMIs using education loan calculators

 

Over the last few years, the US has emerged as one of the most favourite destinations for students wishing to pursue higher education in the US. However, education in the United States can prove quite expensive for students.  Hence, a lot of students apply for an education loan offered by various banks and financial institutions in India. The interest rates for an education loan in US  vary between 1.5 to 2 percent of the principal loan amount added to the existing marginal cost of lending rate (MCLR).  The EMIs for these loans are calculated in following steps using an education loan interest calculator

 


Enter the total loan amount

To calculate an EMI for a particular month using an education loan interest calculator, first enter all details.You would also need to enter the  total loan amount that you wish to apply for in case of your education loan in the first section.

 

In the second section, you need to enter the interest rate that is applicable to your educational loan. You also need to enter the tenure that you would wish to choose for your education loan to get the EMI amount payable by you.
 

 

Make the calculations

To calculate the EMI for a particular month using an education loan interest calculator, divide your interest rate by the number of payments to be made that year. For instance, if your interest is 6 per cent per annum and you make 12 payments a year, you need to divide 0.06 by 12. This will give you the figure of 0.005. Multiply this number by your remaining loan balance to find out how much the EMI you will have to pay this month.

 

Formula for calculating the EMIs

The education loan interest calculator calculates the EMI on education loan using three variables P, N and R. The P in this formulae stands for the principal amount, the R stands for the rate of interest while the N stands for the number of years or the loan tenure. The formulae for calculating EMIs using an education loan interest calculator includes PxRx1+R(1+RxN/1+Rx1-N).

 

Try various options by entering different variables
On the right side of the sliders, you should be able to see the education loan EMI that you are liable to pay with the given combination of loan principal, tenure, and rate of interest. The EMI will vary as you tend to change the contributing factors of the education loan EMI calculator.  You can easily alter these factors and see the changes in the EMI payable that are visible on the right side of the page.

 

An education loan interest calculator helps you budget for the expenses and also saves for your financial goals. The amortisation schedule shows you the education loan EMIs which you have already paid off. You also get an idea of the principal outstanding on the education loan which helps you to manage your funds in a better way.

 


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