According to CBRE reports, there was a 3% increase in housing sales in India. With financial lenders offering low-interest rates, sales are expected to increase even further in the latter half of this year. So if you want to purchase a house, now is the best time to avail a home loan to do so.
However, before applying for an advance, you should check if you can afford it comfortably. The best way to check affordability is by using a home loan calculator to check your monthly repayment amount.
How Does an Online EMI Calculator Work?
An EMI calculator uses the following parameters to calculate your loan repayment amount –
- Your loan principal
- Rate of interest for the advance
- Loan tenure
Why Is It Easier to Use This Tool?
Calculating your home loan repayment amount can be a cumbersome process with room for mistakes. The equation to calculate is EMI is –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where P is the principal amount, R is the rate of interest and N is the number of monthly installments.
The online loan EMI calculator can give you the EMI amount you have to pay, by using this equation, in a matter of seconds.
Additional Read: Use the Housing Loan Calculator to Ease Your Financial Planning
How Can You Make Financial Planning Easier by Using It?
Using the calculator gives you the following benefits –
You can plan your finances better by knowing the amount you have to repay.
It is fast and efficient.
You can avail the funds without any restrictions.
Thus, using the calculator can aid you to start planning your repayment even before you avail the loan. However, make sure you enter the required information correctly to know the exact EMI amount.
