Home Loan Calculator – Your Financial Planning is Only a Click Away
Financial Planning Easy with Home Loan EMI Calculator Amidst a clutter of lenders and loads of information, it becomes difficult for a prospective home buyer like you to match your requirements with the lender’s offerings.
Different lenders are to be evaluated on parameters like home loan interest rate, tenure, loan amount to find the best option that suits you.
You can calculate the EMI for a home loan by using the formula E=[P x R x (1+R)^N]/[(1+R)^N-1]
- Where E is Equated Monthly Installment.
- P is Principal or loan amount
- R is the Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate)
- N is the number of monthly installments or loan tenure in months.
This a complex formula that requires enormous time and effort.
Here comes the role of an online comparison tool like a home loan EMI calculator that makes your life easy. The speed and accuracy of the home loan EMI calculator make the comparison among lenders convenient.
How does a Home Loan EMI calculator work?
You only require three inputs – principal loan amount, home loan interest rate, and the loan tenure to feed on the online home loan EMI calculator tool. You can also use the sliders in the home loan EMI calculator tool to adjust the figures of the inputs.
A marginal difference of 0.5% does have an impact on the EMI if you keep the principal amount & tenure constant. The various combinations of inputs coupled with instant & accurate results help you choose the most affordable home loan.
Financial Planning Made Easy With a Home Loan EMI Calculator
- Determinant tool to finalize the principal amount according to your affordability, home loan interest rate, and tenure. The calculator gives you the option to change the value of the loan parameters as many times as you want. For example, if you find your EMIs exceeding the budget, you can either decrease the loan amount, extend the tenor, or do both to make them more affordable.
- The forecasting tool guides you to maintain a reasonable balance between inflow & outflow of funds to maintain stability.
- Summation tool that displays the loan amortization schedule, i.e. the home loan interest rate, in detail. This handy schedule becomes helpful if you are planning to do a part repayment or foreclosure of the loan by utilizing a bonus or incentives.
- Visual aid represents the total interest due and the principal amount due every month after the EMI payment.
- You can view how much of the paid EMI is divided between interest payment and principal amount repayment. For instance, if you opt for a loan of INR 40 lakhs for 15 years at a rate of interest of 7%, you’ll find that your EMI is INR 35,953. Total due over 15 years i.e. 15*12 months=180 months is INR 64,71,540. Of this amount, a certain percentage goes towards interest, and the rest goes towards the principal.
Conclusion
This user-friendly home loan EMI calculator tool gives you the privacy of assessing your affordability much before the lender’s credit manager approves the loan. You are empowered to decide the most affordable home loan and the reputed lender to make your coveted dream home come true.
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