Taurus Car Loan Calculator
The Taurus Car Loan calculator allows you to calculate the amount of monthly installments that you would be paying on your car loan. The calculator uses factors like the actual loan amount, the applicable rate of interest on the borrowed amount, and the loan tenure to calculate your EMI amount.
A car loan is a type of installment loan used to purchase a vehicle. It is a legally binding agreement between you and the lender that says they will give you the funds to buy a car, and in return, you will pay back the full loan amount along with any interest by a specific date. A car loan is broken into monthly payments over a period, called EMIs (Equated Monthly Installments).
An EMI represents a fixed, periodic payment made by a borrower to a lender, typically every month. This installment serves a dual purpose - it covers the repayment of the principal loan amount and the interest accrued.
How Does The Taurus Car Loan EMI Calculator Work?
The calculator uses the below formula for the EMI calculation.
Where,
P is the principal home loan amount
r is the rate of interest per month
n is the loan tenure in months
Example
You are looking to buy a car and want to take a loan for ₹27 lakhs. The interest rate carried by the loan is 8.75%. The tenure of the loan is 5 years. Here's how much you would need to pay as monthly EMI.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 27,00,000 x (0.0875/12 x (1 + 0.0875/12)^60 / (1 + 0.0875/12)^60 - 1))
EMI = 27,00,000 x 0.00729167 x (1.00729167)^60 / (1.00729167)^60 - 1))
EMI = 27,00,000 x 0.00729167 x 1.5463740348089 / 0.5463740348089
EMI = 30,444.2527276665320301 / 0.5463740348089
EMI = ₹55,721
So, if you take a car loan for ₹27 lakhs at an interest rate of 8.75% for a repayment tenure of 5 years, you would have to pay an EMI of ₹55,721 every month.
How To Use The Koshex Taurus Car Loan EMI Calculator?
The car loan EMI calculator is easy to use. Here is a step-by-step guide on how you can use the calculator properly.
Enter the following information into the EMI calculator:
- The loan amount you wish to borrow from the financial institution.
- Specify the interest rate of the loan.
- Mention the repayment tenure of the loan.
As soon as the above details are entered into the calculator, the calculator will show you the monthly EMI amount.
Example
Mr. Harish is looking to buy a car. He wishes to take a car loan for ₹32 lakhs. The lender is offering the loan at an interest rate of 10%. The tenure of the loan is 7 years. Here's how much he has to pay every month.
EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)
EMI = 32,00,000 x (0.10/12 x (1 + 0.10/12)^84 / (1 + 0.10/12)^84 - 1))
EMI = 32,00,000 x 0.008333 x (1.008333)^84 / (1.008333)^84 - 1))
EMI = 32,00,000 x 0.008333 x 2.0078643963176 / 1.0078643963176
EMI = 53,540.90884644659456 / 1.0078643963176
EMI = ₹53,123 (approximately)
So, if Mr. Harish takes a loan for ₹32 lakhs to buy a car at an interest rate of 10% for a period of 7 years, he would have to pay a monthly EMI of around ₹53,123.
Benefits Of Using The Taurus Car Loan EMI Calculator
There are several benefits of using the car loan EMI calculator. Here are a few of them:
- The car loan EMI calculator offers quick results, eliminating complicated manual calculations, which take a lot of time.
- The calculator gives error-free results every time.
- The calculator shows you the monthly EMI amount, making it easy for you to plan your finances.
- The calculator helps you understand whether you will be able to afford a car loan.