Vehicle Loan Calculator

The vehicle loan calculator allows users to ascertain how much monthly EMI (Equated Monthly Installment) they need to pay after taking a loan of a certain amount to purchase a vehicle.

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

• Loan Amount: The amount one wishes to borrow for buying the vehicle.
• Interest Rate (per annum): The interest rate one is expected to pay on the borrowed amount during the tenure of the loan.
• Tenure (In Yrs): The number of years for which the user intends to borrow the money.

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

• Monthly EMI: It lets the user know how much money they need to pay per month to pay off the borrowed amount.
• Total Interest Payable: It lets the user know how much money they have to pay as interest on the borrowed capital.
• Total Amount: It lets the user know how much money they have paid back as principal plus interest on the borrowed capital.

The interest payment is calculated on the reducing balance payment method. In each EMI, the user pays a certain amount of principal and interest back to the lender. In the initial months of the loan, the interest component is more in the EMI, and the principal component is less. As the loan tenure progresses, the interest component in the EMI decreases, and the principal component increases.

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