# Use Interest Rate Calculator To Calculate Your Personal Loan Rates

4.6 #### The interest rate calculator determines the actual interest rate, interest amount, EMI, and the total repayment amount.

A personal loan interest rate calculator is an online tool that helps you calculate the interest rate on your loan. It is quick, accurate, and trusted by a major percentage of users.

How to use the calculator:

To calculate the interest rate on your personal loan, you need three main components. Those are loan amount, rate of interest, and tenure. Just put these three pieces of information. The interest calculator automatically calculates the interest amount that you probably need to repay with the loan amount. The calculation gets done within a few seconds. And you get to know how much extra money you have to pay in the form of interest. It is advisable to take this free online tool provided by top-ranked lenders.

Formulas that are used in the tool:

Simple interest formula-

P*I*N= simple interest

Here P means principal amount, I is the interest rate per annum, and N is tenure.

Compound interest formula-

P{(1+I)N-1}= compound interest.

Here P is the principal amount, I refers to interest rate, and N means the number of compounding periods for a year.

Benefits of using it:

User friendly - It is simple, quite user-friendly, and easy to understand. Even people who do not have much technical or mathematical knowledge can use the interest calculator.

Saves a lot of time - Saving time is the biggest advantage that the tool provides. Though, people can use relevant formulas and calculate them manually. However, the calculator is capable of doing all the work in a few seconds. It saves time and energy.

Eliminates errors - This tool is accurate and provides zero error. A small error can lead you to erroneous calculations. This can cost you money. If you put the accurate values, there is no chance of an erroneous result. It is completely reliable.

Helps take a decision - Interest rate and interest amount decide the EMI amount. Once you get to know the interest, you understand how much you have to pay each month. Based on this result, you decide if you can pay such an amount. It helps you take quick decisions about the loan repayment period, interest rate, and credit amount when you are in a hurry of availing quick loans.

Additional Read: 6 Differences Between a Top Up And a Personal Loan