Repaying a home loan requires proper financial planning and calculating the monthly instalment at the very onset, comprises one of them. Doing so will help borrowers determine their monthly financial liabilities and manage their finances better. In this regard, they can take the aid of an home loan EMI calculator that most lenders offer nowadays.
Borrowers can also use this housing loan EMI calculator to compare different lenders and avail the best terms of service.
Following is a comprehensive guide on how to use this online tool -
- Visit the online portal of your preferred lender and navigate to their home loan page.
- Select home loan calculator from the drop-down menu.
- Enter these details - loan value, tenure and interest rate offered to you and click on “calculate”.
- You will get these results - total payable interest, your monthly EMI and the total amount payable (interest + principal).
If you want to know about the details of interest payable, you can also use the lender’s online home loan interest calculator. This online calculator can also be helpful if you are looking to avail a home loan with the best features and terms of services.
A house loan calculator utilises the following formula to calculate the loan EMI amount -
Monthly Instalment = [P x R x (1+R)^N]/[(1+R)^N-1]
Here, P = Principal
R = interest rate
N = number of EMIs
The formula for calculating the EMIs is complicated and leaves room for sizable errors if initiated manually. Thus, with the assistance of a home loan EMI calculator, you can not only save a lot of time but also get an error-free result as well.
