A home loan calculator may help a borrower figure out how much they’ll have to pay in EMIs for their home loan, allowing them to make an informed decision. In just three simple steps, the home loan EMI calculator serves as a home loan interest calculator, providing the loan recipient with the interest amount owing on his/her home loan as well as the overall EMI amount.
What Is A Home Loan EMI?
EMI, or Equated Monthly Installment, is the monthly repayment that a home loan borrower must make to repay the home loan within the specified loan tenor.
How to calculate Home Loan EMI?
The easiest way of computing the EMI is by using an home loan EMI calculator. It is an online calculator that can be used to determine the monthly EMIs for a specific loan amount. The calculator takes into account the loan amount, the bank’s interest rate, and the payback period to calculate the amount of EMI the borrower will have to pay each month during the chosen period. The formula for the same is-
[P x R x (1+R)N]/[(1+R)N-1] = EMI
Here, P represents the principal and the loan amount.
N is the number of monthly instalments.
R is the home loan interest rate.
A home loan EMI calculator will help the loanee determine whether he/she can afford the long-term financial commitment of a home loan. Depending on the number of home loans the borrower is taking and the time period for which they’ll be paying the equivalent monthly instalments, they can increase or decrease their EMI amount.
Features of home loan emi calculator-
Calculating the home loan EMI can be challenging due to the large sum involved. The EMI calculator,
- Give a detailed look at your monthly EMI.
- Shows all monies due till the end of the month.
- One can compare EMI at different interest rates to discover the best one for them.
- By entering the type of interest rate, amortisation duration, and loan amount into a home loan calculator, the applicant can get customised results.
- Home loan calculators are very simple and handy to use because they can perform calculations quickly and provide an overview of loan possibilities accessible in the market.
Benefits one gets with the EMI calculator are-
- It calculates the exact EMI amount due over the term, hence giving an individual complete power to change their outlays to pay the EMIs.
- An EMI calculator will assist an individual in comprehending the numerous financial expenses linked with their house loan, such as the total payable interest, loan processing fees, stamp duty fees, and so on.
- The loan calculator can be used to compare loan offers from different institutions. This will assist the borrower in determining the most viable choice.
- There are no mistakes when it comes to calculating the exact loan EMI.
- One may get an approximate sense of the monthly payable EMIs towards the loan by using the EMI calculator, which allows the borrower to input different interest rates and tenures. As a result, they may plan their budget while keeping their EMI amount in mind.
- An individual is spared the trouble of manually calculating the EMI amount.
- Organizing one’s funds becomes a lot easier and less time-consuming.
Now that after knowing how to calculate a home loan EMI, start looking for a home loan with low interest rate and value-added features to make borrowing easier. Various banks and financial institutions use home loan calculators on their websites to attract more customers and attain their satisfaction. It is one of the most reliable ways to receive a modest home loan interest rate starting at just 6.75% and on fair terms. To get started, one can use the home loan eligibility calculator to check if they are qualified and apply online today.
