Benefits of Home Loan EMI Calculator

Overview

A Home Loan is a long-term commitment that requires proper financial planning. The tenor for these loans usually goes up to 40 years. If you are planning to avail of a Home Loan, it is essential to understand your EMI obligations in advance to plan your budget accordingly.

A housing loan EMI calculator is a handy tool that allows borrowers to understand their EMIs concerning a specific loan amount, thereby allowing them to better plan their loan journey.

How to Calculate Home Loan EMIs?

You can use our Home Loan EMI Calculator to estimate your EMIs. It is a free-to-use tool, which requires only three values — the Home Loan amount, the repayment tenor, and the rate of interest — to calculate your EMIs for a Home Loan instantly. You can view a repayment schedule, also known as an amortisation schedule, to understand the month-wise breakup of your EMIs towards the loan repayment.

Benefits of Using a Housing Loan Calculator

It Omits Any Chances of Errors

To calculate your Home Loan EMIs manually, you can use the following formula:

Home Loan EMI = P x R x (1+R)^N / [(1+R)^N-1]

Here,

P = Principal loan amount or the loan value

N = Loan tenor in months

R = Monthly interest rate

Calculating EMIs manually can be a complex task prone to errors. A housing loan EMI calculator omits any scope of errors and delivers accurate results.

It Can be Used Multiple Times

Since a Home Loan is a long-term commitment, one must make sure to figure out the right EMI amount that they can easily manage to pay each month. Usually, figuring out this EMI value requires one to try various combinations of the loan amount, tenor, and interest rate. With an EMI calculator, you can try various permutations and combinations to determine a suitable EMI amount, all at no cost.

It Helps You Plan Your Finances

By knowing your monthly EMI in advance, you can plan your finances more effectively. The calculator allows you to ensure that your monthly expenses are manageable alongside your loan repayments.

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