Understanding the EMI Affordability Calculator

The EMI Affordability Calculator is a practical tool that helps you determine the minimum monthly salary you would need to afford the Equated Monthly Installment (EMI) for a particular purchase, like a smartphone, car, or home appliance. It works by taking the price of the item, your down payment, the loan interest rate, and the tenure, and calculates the resulting EMI. Based on a standard financial principle—the Debt-to-Income (DTI) ratio—it then estimates the monthly salary required to comfortably manage that EMI.

How Does it Work?

The calculator first determines the loan amount by subtracting your down payment from the item's price. It then uses the standard EMI formula to calculate your monthly payment. Finally, it uses a fixed DTI ratio (usually 40%) to estimate the required salary. The idea is that your total monthly debt payments, including this new EMI, should not exceed 40% of your gross monthly income. This is a crucial guideline that lenders use to assess your repayment capacity.

Formula Used

1. Loan Amount = Item Price - Down Payment

2. EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P is Loan Amount, R is the monthly interest rate, and N is the tenure in months.

3. Required Monthly Salary = EMI / DTI Ratio

Benefits of Using This Calculator

• Financial Planning: It helps you understand if you can truly afford a purchase on EMI without straining your budget. You can adjust the down payment or tenure to see how it impacts the required salary.
• Avoids Debt Traps: By knowing the required salary, you can avoid taking on loans that are too large for your income level, preventing financial stress down the line.
• Informed Decisions: It empowers you to make smarter financial decisions before committing to a significant purchase. You can confidently walk into a store knowing what you can realistically afford.

ईएमआई अफोर्डेबिलिटी कैलकुलेटर को समझना

ईएमआई अफोर्डेबिलिटी कैलकुलेटर एक व्यावहारिक उपकरण है जो आपको यह निर्धारित करने में मदद करता है कि किसी विशेष खरीदारी, जैसे स्मार्टफोन, कार या घरेलू उपकरण के लिए समान मासिक किस्त (ईएमआई) वहन करने के लिए आपको न्यूनतम मासिक वेतन की कितनी आवश्यकता होगी।

यह कैसे काम करता है?

कैलकुलेटर पहले आपके डाउन पेमेंट को वस्तु की कीमत से घटाकर ऋण राशि निर्धारित करता है। फिर यह आपकी मासिक भुगतान की गणना के लिए मानक ईएमआई फॉर्मूले का उपयोग करता है। अंत में, यह आवश्यक वेतन का अनुमान लगाने के लिए एक निश्चित डीटीआई अनुपात (आमतौर पर 40%) का उपयोग करता है। यह एक महत्वपूर्ण दिशानिर्देश है जिसका उपयोग ऋणदाता आपकी चुकौती क्षमता का आकलन करने के लिए करते हैं।