People who do not have enough funds can also dream of owning a house that they desire, courtesy home loans. With a housing loan, one can purchase their dream house and comfortably repay the amount over the years as per their comfort and financial viability. However, while this convenience has made availing a housing loan easier, it has emphasised applying for a home loan carefully. When you avail a home loan, you must ensure it is within your budget and affordability. Repaying the home loan should not ruin your other plans or hamper you financially. A home loan EMI calculator can help you avoid such a critical situation.
Here is a guide on EMI calculators and how they can help you get an optimal deal.
What is a home loan EMI calculator?
An EMI home loan calculator is an online computation tool that helps you determine your EMI and total repayment amount. You can find the calculator on an aggregator or lender’s website for free of cost. This tool provides details about your loan amount and a breakdown of the interest and principal components. A home loan EMI calculator can help you determine the best tenure and aid in effective financial planning. An EMI calculator works on the following mathematical formula –
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1],
Where,
P – loan amount
R – interest rate
N – the repayment tenure
Unlike calculating the EMI manually through this formula, it is easy to get the results from an EMI calculator by just entering a few variable figures. You can find the values by inputting your loan amount, interest rate and tenure.
How to use an EMI calculator
- Visit the home loan page and click on EMI calculator
- Enter the loan amount
- Enter the chosen tenure and tentative interest rate
- You will get the results instantly.
The home loan EMI calculator results include the total repayment value, the interest component of the repayment amount, and your EMI. You can either input the values manually in the space or use the sliders.
How can an EMI calculator help you?
- It is accurate and easy to use
You need no special training to use the calculator. It is simple to use and available free online. Moreover, it is precise and accurate. You can rely on the calculator to get accurate results and avoid time-consuming manual calculations.
- It helps in planning your finances
When you know your EMI amount beforehand, you can make provisions to pay it comfortably. With the awareness of the total loan amount, budgeting and allocating funds for different needs becomes easier too. By using a home loan EMI calculator, you can plan your finances in a better manner.
- It helps you find an optimal deal
You can alter the variable values any number of times and find a suitable tenure for you. You can reduce the tenure to lower EMI and vice versa.
With a home loan EMI calculator, you can compare different loan offers and choose the most suitable one for you. Moreover, you can do better financial planning without divulging any personal details. So, check your affordability and apply for a housing loan today.
