An online home loan calculator is a self-help planning tool offered by most lending institutions. This tool helps you calculate an approximate figure for the total monthly instalment payments or EMIs for the home loan that you avail of. It helps you plan your finances before applying for a home loan considering various factors, such as the funds in hand for the down payment, current home loan interest rates, the home loan tenor, and other factors.
How Is an Online Home Loan Calculator Used?
Using an online home loan EMI calculator is an easy task. The calculator will give you an estimated home loan EMI figure to help you plan your budget accordingly. You just need to enter the following to know the approximate monthly EMI:
- The loan amount (rupees)
- Loan term (months or years)
- Rate of interest (percentage)
Benefits of Online Home Loan Calculator
It is Easy to Use
Using an online home loan EMI calculator is simple. Just enter the required loan amount, interest rate, and the suitable loan tenor for you. You will receive an estimated EMI amount within seconds. Now, plan your finances accordingly.
Helps You Select the Right Tenor
Once you know the approximate loan EMI, you can tweak the loan tenor and see what tenor best suit you. For some, longer tenor is better while others may prefer a shorter tenor. The EMI amount changes as per the change in tenor.
It Helps with Proper Loan Management
The online home loan EMI calculator can also give you information regarding the impact of prepayment of home loans on your EMIs and how you can save on interest through such prepayment.
Using the online home loan EMI calculator tool, you can compare loans and the different interest rates by various lenders. This will help you choose the most suitable option for you.
Final Words
All in all, the online home loan EMI calculator is an essential financial planning tool. It helps you get a clear picture of the EMI required to be paid monthly among other expenses. Now you can easily plan your monthly budget keeping in mind all incomes and expenses using the online home loan calculator.
Read Also: Benefits of Using Home Loan EMI Calculator
