While you search for home loan EMI calculators online, plenty of search results will be laid. You must know that home loan calculator mainly act as general self-help Planning Tools. Your calculations depend on various factors, including your deliberate assumptions.
Nevertheless, these free sites certainly do not provide guaranteed accuracy. So we suggest you not trust their predicted applicability to your circumstances. Also, remember that the interest rates broadly vary from bank to bank as it is their sole discretion. So the rates are subject to change as per the applicable changes in the market.
So, before you apply for a housing loan, you need to calculate your repayment value. This will help you determine your capabilities and whether or not you will be able to repay your debts.
You will learn how to use a home loan EMI calculator through this article. Further, you will also learn how to calculate your home loan EMI. Keep reading until the end to explore more about calculating home loan EMI. Let’s get started!
1Home Loan EMI – What is it?
EMI or Equated Monthly Installment is a dedicated sum of money you pay every month to repay your outstanding home loan. Your payable EMI comprises both the principal and interest amount placed against the loaned amount.
So the monthly EMI that you need to pay against your loan depends on the amount you have loaned. It also depends on your repayment tenure and the levied interest value. Remember that a longer tenure loan comes with a lower EMI, while the shorter tenure value loan comes with a higher one.
So before you finalize your ideal home loan, make sure you go through every instruction. This will help you find the best home loan, and you can calculate your EMI accordingly.
2Ways to Use a Home Loan EMI Calculator
A home loan EMI calculator is straightforward to use, and you can calculate your EMI amount within a few seconds. But before you start punching your details and begin using it, make sure you figure out a rough estimation of the principal loan amount. So, according to your monthly income and expenses, you can determine the EMI you are capable of paying.
For computing your EMI amount, a home loan EMI calculator uses a specific formula: EMI = [P x R x (1 + R) ^ N]/[(1 + R)^N – 1]. All you need to do is enter the principal loan amount you require. Besides, you also need to put the tenure of your desired loan and a reasonable interest rate.
Read More: Interest is Best for Home Loans
The home loan EMI calculators will compute your EMI amount within no seconds. However, if you know the techniques and can assume an approximate amount, calculating your home, EMI will be a smooth procedure altogether.
3How Can a Home Loan EMI Calculator Prove to Be Beneficial?
Listed here are some of the compelling benefits offered by a home loan EMI calculator:
- The online home loan EMI calculator deliberately eliminates the requirement for manual calculations. So in a way, the EMI calculators will prevent any significant error.
- With EMI calculators, you can start preparing yourself for the home loan you’re about to take. This calculator helps predict the potential EMI payable value before your home loan is sanctioned.
- Since EMI calculators help streamline your finances, you can carefully plan your budget. So this will help you to accommodate your EMI without affecting other mandatory expenses.
- You can adjust your loan amount and tenure with different permutations and combinations.
You will surely know how to calculate your home loan EMI. So, before that, determine the loan amount, tenure and interest, and calculate your EMI accordingly.