When availing a home loan, you must ensure that a home loan EMI is well within your budget. This will help you repay the home loan without straining your finances. Also, you must not forget that a home loan is a secured loan, and defaulting on it can cost you dearly. An affordable EMI will reduce the possibility of a default and make repayment easier.
You can make use of a home loan EMI calculator to get an estimate of your home loan EMI. A home loan EMI calculator is an easy-to-use online calculator that will give a fair idea as to whether you can afford the loan or not.
Here’s how you can calculate your home loan EMI using an online home loan EMI calculator.
You can easily calculate your home loan EMI with the help of 3 parameters, i.e., loan amount, loan tenure, and interest rate. Enter these details into the EMI calculator, and you’ll be able to calculate the estimated EMI. You can use various permutations and combinations of these three inputs to obtain the EMI that suits you the best.
EMI Calculators formula
E = P x r x (1+r)^n/ ((1+r)^n-1),
- E = monthly instalments,
- P = home loan amount you wish to borrow,
- R = monthly rate of interest, derived using the formula R = (annual interest/12) x 100,
- N = loan tenure in months.
Having an estimate of a home loan EMI will help you plan your monthly budget efficiently, thereby allowing you to repay your home loan within the specified tenure.
Features of a Home Loan EMI Calculator
Some of the features of a home loan EMI calculator are enlisted below:
An online home loan EMI calculator is extremely simple to use. With the help of basic inputs such as loan amount, interest rate, and loan tenure, you can obtain a home loan EMI conveniently.
The output of a home loan EMI calculator is error-free. This helps in getting a proper estimate of home loan EMI, thereby allowing you to plan your monthly budget wisely.
You can calculate the monthly instalment of your home loan instantly. The process is quick and hassle-free.
By calculating your home loan EMI beforehand with the help of an online EMI calculator, you will be able to make a well-informed decision regarding the loan amount and tenure you should settle for. You must note that the lesser your home loan EMI, the longer will the loan tenure be. By opting for a long-term home loan, you would be spending more towards the interest outgo. On the contrary, by paying higher EMI and clearing the loan sooner, you can save on the total interest pay-out on your home loan. Thus, you must evaluate your finances carefully and settle for an EMI that suits you the best.