One of the most crucial parts of availing a housing loan is to gauge its affordability. If you don’t calculate your EMI amount before availing the loan, you can risk defaulting on your payment. Therefore, if you want to avail this advance, you should first use a housing loan EMI calculator to calculate your repayment amount.
Calculation of Housing Loan EMI in India
In India, calculation of housing loan is done by using the following equation:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where P gives the principal amount, R is the rate of interest and N is the number of monthly instalments.
However, calculating the interest amount using this equation can take a long time and leave room for errors. Thus, using a calculator is the best way to get your accurate EMI amount.
With this calculator you need to enter parameters like your loan amount, interest rate and tenor to get your repayment amount.
Additional Read: Use EMI Calculator Before Finalising the Home Loan
How to Use the Calculator?
There are various financial institutions that provide the home loan calculator on their website. To make use of it, you need to follow the steps below
Visit the page of housing loan EMI calculator
Enter the details and then click on “calculate EMI”
The calculator will then compute the EMI amount you will need to pay for your loan within a matter of seconds. It will help you save time and avoid making mistakes while calculating the repayment amount.
