A loan can serve as your go-to option when you’re facing a financial crunch, or for when you need to make a major purchase. Your first home, a car, or your child’s higher education—everything can be financed with the right loan. However, repaying a debt is not as easy a task as procuring it. You’ll have to adjust it with your monthly budget so that you can pay your EMIs on time. This can be a bit taxing, especially if it’s your first loan. This is where an online financial calculator will help you out.

Some Ways in Which You Can Use an Online Calculator to Manage Your Finances

Use an Eligibility Calculator

Did you know that you can start preparing a budget even before you have applied for a loan? All you need is an eligibility calculator.

This calculator will ask for various personal details like date of birth, city of residence, and employer’s name. You will also need to punch in details like net salary and outstanding loan amount (if any) amongst others. Once done, the calculator will tell you the loan amount you’re entitled to receive. Depending on this, you can rethink your budget, so that the loan be easily accommodated in it.

Opt for an Interest Calculator

Once you’ve applied for a loan, you can use an interest calculator to determine the interest charges you’ll be liable to pay throughout the year. You can also calculate the monthly EMIs and get an approximate picture of what percentage of your salary will go toward paying them.

Nowadays, most banks and NBFCs have an EMI calculator on their website, which you can use to understand how the rate of interest and tenure will affect you. If you think that the rate of interest is too high, you can always opt for another financial institution. Or, you could negotiate, with the lender, to bring down the overall interest charges.

Sort Your Finances

Apart from these two calculators, you’ll also find financial calculators online. These virtual machines help you set short as well as long-term goals. For example, if you’ve two running debts and huge monthly expenses, you can use an online financial calculator to figure out a way to start saving.

Also, if you have any investments, or would like to start one, a financial calculator will help you select the best ones. For instance, you can use an SIP calculator to determine the amount of money you’ll receive at the end of an investment term. Apart from this, there are many other kinds of online calculators, each for a particular type of investment or debt.

Taking a loan, or making an investment, is not a tough task, provided you can fit it into your budget. An online financial calculator can help you with this by giving you an approximate idea of your debt-to-income ratio. So, use one today and manage your finances efficiently!

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