Vehicle Loan Calculator

The vehicle loan calculator allows user to ascertain how much monthly EMI (Equated monthly instalment) s/he needs to pay after taking a loan of certain amount to purchase the vehicle.

The Vehicle Loan Calculator ask the user to enter following three inputs: –

1. Loan Amount – The amount one wish to borrow for buying the vehicle.
2. Interest rate (per annum) – The interest rate one is expected to pay on the borrowed amount during the tenure of the loan.
3. Tenue (In Yrs)– The number of years for which user intends to borrow the money.

The Vehicle Loan Calculator generates the following output for the user: –

• Monthly EMI – It let the user knows how much money s/he Needs to pay per month to pay off the borrowed amount.
• Total Interest Payable – It let the user knows how much money s/he has to pay as interest amount on the borrowed capital.
• Total amount – It let the user knows how much money s/he has paid back as principal plus interest amount on the borrowed capital.

The interest payment is calculated on reducing balance payment method. In each EMI, user pays certain amount of principal and interest back to the lender. In the initial months of loan, the interest component is more in the EMI and principal component would be less. As the loan tenure goes, the interest component in the EMI goes down and principal component goes up.

At the end of the tenure, both the principal and interest payment get paid to the lender. All the interest payments are considered as received at the end of the period.