Friday, January 31, 2014

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By observing the name of the blog anyone can tell that this blog is meant to provide EMI calculator, also anyone can guess that the EMI calculator provided by this blog is different from other EMI calculators but no one can guess that this blog not only provides EMI Calculator but also provides other Knowledge as well as Information relating to the purpose of EMI loan obtained by the borrower to buy something like, if home purchase then explanation about real estate, if used car purchase then explanation about how to judge the condition of used car, including how EMI is calculated, how to use this EMI Calculator for Multiple purposes, Terminology used under EMI Loans etc. Anyone can download EMI calculator Free for personal purpose, and acquire knowledge and information whatever is available in this blog. All ready so many websites are providing EMI calculator which is only one type of EMI calculator but this is a blog which provides 3 types of EMI calculators which includes 1 calculator same as all other websites are providing with additional another two types which is designed by this blog, the features of all three types of EMI Calculators and how to calculate EMI is explained in this page under respective heads and for other knowledge and information like how to use 3 Types of EMI calculators for Multipurpose like finding out Home Loan Eligibility or for Floating Rate Home Loans etc. or Technical stuff about used cars or about Real Estate etc. go to Index or use gadget “Search this blog” right side of this description.


1.3 How EMI (Equated Monthly Installments) is calculated:

If we take loan it can be repaid in 2 ways, repay the loan at a time or repay the loan in installments, for example the loan is taken for 1 year under repay the loan at a time then the borrower have to pay same amount of interest every month till 11 months and at the end of 12th month he has to pay interest plus loan amount to come out of total liability from loan, on other hand if the loan is taken for 1 year under repay the loan in installments then the borrower will pay every month the part of loan amount including interest for the month which will result in decrease of interest every month due to repayment of part of loan every month as a result the money lender or borrower have to calculate every month's interest and remaining unpaid loan amount. To overcome the problem of recalculating every month's interest and remaining unpaid loan amount a new formula was found out which result in Equated Monthly Installments (EMI in shortcut). EMI is in such a way that the installment amount will stay unchanged,  even interest for the loan amount decreases every month due to repayment of part of loan amount every month by the way of increasing the repayment of Loan amount every month.

1.4 Formula for Calculating EMI is:

p x (((i/12) + 100)/100)^t
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1 + (((i/12) + 100)/100) + (((i/12) + 100)/100)^2 + --------- + (((i/12) + 100)/100)^t-1

Where:
P is Principal
I is Rate of Interest per Annum
T is Tenure 

The formula for Calculating EMI can be found in other websites or blogs also but the formula in other websites or blogs is different from above mentioned formula and it works well.

1.5 Special and Ordinary Features of 3 Types of EMI calculator Ordinary Features:


Ordinary Features:
Ø Calculation of EMI
Ø Statement
o   Showing Monthly Interest Payable
o   Showing Monthly Re-payment of Loan
o   Showing Monthly Remained Unpaid Loan Amount

Special Features:
Ø Finding out Wanted EMI
Ø Finding out Round figure EMI: For example it is possible to set EMI exactly Rs.999 or 1000 or 1999 or any other figure or any other round figure for a loan amount of 50,000.
Ø Can be used for Multipurpose like:
o   Home Loan Eligibility Calculator
o   Home Loan Floating Rate
o   Home Loan Fixed Rate
o   Vehicle Loan EMI Calculator
o   Accelerated Repayment of Loan
o   Lump Sum Repayment of Loan
o   Reveres EMI Calculator 

1.7 How to Use 3 Types of EMI Calculators:

When I started this website on 2011 May I Provided EMI calculator which contain 3 types of EMI Calculators that is why I kept the name of the website 3 Types of EMI Calculator and got a web address http://emicalculator3types.blogspot.com/, but after I have done lot of study from 2011 May I updated this Calculator which can be used for Multipurpose (11 Purposes or All purposes) for designing this updated Calculator I have again used 3 types of EMI Calculators but not created one more type of calculator, So now also it can be said like this calculator contains 3 types only but looks like 11 types and now it becomes tradition to me to explain first about 3 types of EMI Calculators in Home Page(this page) then after how it can be used for multipurpose in other pages.

From above read you can understand that in this page I am explaining about traditional 3 types of EMI Calculators in Home Page but from my point of view, still it is not possible to me to explain traditional 3 types of EMI Calculators in this home page because it takes all most all 25 note book pages, so I am explaining 3 types of EMI Calculators in shot cut, for perfect explanation switch on to this links below:


The explanation of traditional 3 types of EMI Calculators as follows

Note: See screenshot pictures below for more clarity

1.      Finding out Tenure or Type 1 EMI Calculator: For this type of EMI Calculator first you need to select the option “EMI Calculator Type 1 or Ordinary or Old Type” from the drop down list of Combo Box where you have 11 options, then you need to fill 3 Input cells to get the output EMI and Monthly Statement and Total Interest on Loan.

Limitations of Type 1 EMI Calculator: This Calculator option Tenure is made for calculating not more than 400 months, if you type more than 400 in Tenure cell it will display beside the cell “400 or Less than 400”, anyhow EMI loans mostly do not exceed 25 years and this calculator is made for 33.33 years.

Disadvantages of Type 1 EMI Calculator: It is not possible to choose a best or exact suitable EMI for our requirement may be trying out 3 to 4 tenures but with the Type 2 EMI Calculator we can overcome this problem.

2.    Finding out Wanted EMI (Approximate) or Type 2 EMI Calculator: For this type of EMI Calculator first you need to select the option “EMI Calculator Type 2 or Find Wanted EMI (Approximate)” from drop down list of Combo Box where you have 11 options, then you need to fill 3 Input cells to get the output and Monthly Statement. With this type of EMI calculator you will get two outputs for example the inputs are principal is 1000000, Rate of Interest is 12 % per Annam and Wanted EMI is 11000 with this inputs or any other inputs this type of EMI calculator will give 2 outputs, the outputs for the example are i. EMI is 11010.86134 Tenure is 240 ii. EMI is10999.8521 Tenure is 241 and the Monthly Statement displayed will be for 1st output, if we want Monthly Statement for 2nd output we need to select Option Button “Output 2 with this we get Statement for 2nd output.

Limitations of Type 2 EMI Calculator: In this type of Calculator if the principal is give very high and the amount of wanted EMI is given very low it will display beside of the 'Wanted EMI' input cell some amount “XXXXX at least” and output will not be displayed, another Limitation is the output Tenure do not Exceed more than 400 months and which is more than enough.

Advantages of Type 2 EMI Calculator: While planning to take Loan the first thought which Tap’s our mind is the amount of EMI we can bare to pay every month, so with this type of EMI calculator we can give the inputs of our Wanted EMI, wanted Loan Amount and Rate of Interest to get Tenure (instead of giving Tenure to get EMI), but the outputs Wanted EMI is little bit less in the first output and little bit high in the 2nd output. With this type of EMI Calculator we can overcome the disadvantage of Type 1 Calculator. Finally type 3 EMI calculator has more advantages than type 2 EMI calculator.

3.     Finding out Exact Wanted EMI (Type 3 EMI Calculator): In this first you need to select the option ‘EMI Calculator Type 3 or Find Wanted EMI (Exact)’ from drop down list of Combo Box where you have 11 options then you need to fill 3 Input cells to get the output.   In this type of EMI calculator the output will be only one, this type of calculator can be used for business purpose to attract customers by providing Exact Wanted EMI, like if input Exact Wanted EMI is 10000 the output EMI will be 10000 but the principle amount will be varied little bit which can be adjusted because 100 % amount of requirement of borrower are not sanctioned by any Lenders.

Limitations of Type 3 EMI Calculator: In this type, if the principal is given very high and amount of Exact wanted EMI is given very low then it will display some amount “XXXXX at least” beside of the 'Wanted EMI' input cell and output will not be displayed the another Limitation is the output Tenure do not Exceed more than 400 months and which is more than enough.

Advantages of Type 3 EMI Calculator: With this type of EMI Calculator we can get Exact EMI we want which will help the product selling companies or banking organizations to attract customers by providing like exactly 5000, 10000 or 15000 and also Fancy Numbers like 9999, 4444, 14786 or any other numbers or fancy numbers. This is just like Type 2 EMI Calculator the only difference is in this the output principle is little bit varied where in 2nd type EMI is little bit varied.

How to use 3 Types of EMI Calculator explanation through Screenshot pictures:

Note: I have explained how to use 3 types of EMI calculator for 11 purpose in general, if the viewer want the explanation for any particular purpose separately, then switch on to other pages

Step 1: Open the downloaded EMI calculator (Excel Format)

Step 2: Select work sheet named “EMI Calculator” which is default

Step 3: Select the option “Home Loan Eligibility Calculator” or “Home Loan Floating Rate” or “EMI Calculator Type 1 or Ordinary or Old Type” or etc. according to your need. From the drop down list of Combo Box where you have 11 options








Step 4: Now fill all inputs cells which are asked




























Step 5: Be sure that no Mistakes are displayed beside Input cells; Output will be displayed only when all mistakes are cleared







Step 6: With the given inputs calculator display the output or outputs to choose according to your requirement. For example under Home Loan Eligibility
Calculator  if inputs principal is given 1500000, Rate of Interest is given 12% and wanted EMI is given 20000 per month then the calculator will give 3 outputs for above inputs or any other inputs, here the 
Output 1: EMI 20000, Tenure 139 and Principle 1498398 which is little bit less than input Principle but exact Wanted EMI, Output 2: Principal 1500000, EMI 19955.23897, Tenure 140 which is little bit less than input wanted EMI and Output 3: Principal 1500000, EMI 20021.37945, Tenure 139 which is little bit more than input wanted EMI.
 






















Step 7: Other stuff relating to the output is explained below:

Description: This will explain about the output like How it is calculated, what it consists of etc.

Statement: The calculator displays statement of all outputs: Output – 1, Output -2, and Output - 3

Select Statement: To switch from one statement to another statement select any of the 3 Option Buttons output -1 or output - 2 or Output – 3

Total Interest: Total Interest included in the amount of all Installments or EMI.































Settings: Under settings you can change Maximum Tenure for Home Loans, Vehicle Loans and Personal Loans.  Which are set to 360, 84 and 72 and are maximum tenures allowed by banks.  For changing Tenure: go to Work Sheet Settings and change any one if needed.