Calculating a home loan is a complex undertaking. Furthermore, the lengthy and painstaking mathematical calculation can take hours to complete when you’re considering getting one. Therefore, simplifying or making the calculating process easier for home loan EMIs using an online calculator would help. Every type of loan has three basic parts: the required loan amount, the interest rate provided by the lender, and the loan’s tenure (in months or years). Once you have all that information, you can calculate the EMIs with the Home Loan EMI Calculator.
The evaluation tool on freeemicalculator.in makes it accessible to instantly compute the EMI for home and other loans with complete accuracy and no errors.
Home Loan EMI Calculation Formula
The formula used in the EMI Calculator home loan is the standard formula to calculate home loan EMI manually. The following is the complete presentation of it.
E = [p x r x (1+r)^n]/[(1+r)^n-1]
where,
- E: denotes equated monthly installment,
- p: denotes principal or loan amount,
- r: the interest rate on a loan, and
- n: number of monthly installments or loan tenure in months.
Now that you know its basics and what’s the calculation formula, let’s quickly look at the process of using the home loan EMI calculator. Suppose you’re planning on getting a home loan. In that case, this tool will help you in preparing better by undertaking various factors and figures.
How to Utilize the EMI Calculator for Home Loans
We know that interest rate, loan tenure, and the principal amount are the three main components of calculating EMI for a home loan. Gathering those values from a different bank and authorized lending facilities, you can compute the EMI with the following instructions.
- First, open the EMI Calculator for Home Loan by tapping here.
- Next, input the loan’s principal amount.
- Now, enter the given interest rate and loan term after that.
- Once you have substituted all the details, the home loan EMI calculator will provide the monthly EMI and total interest to be paid on the chosen principal amount.
- Further, you can adjust these values using the slider or manually entering them. With that, you’ll be able to use the tool to compute the EMI from different financial institutions.
Note: Ensure to compare the processing fees and foreclosure costs while comparing the home loans offered by different institutions (if any).
Benefits of Using a Loan-Specific Calculator
India is one of the biggest hubs that acquire financial aid, like loans, to support their needs. Therefore, using the loan-specific calculator will give you all the clarity about the loan. Furthermore, it will help you determine whether you can afford the loan. Thus, using the EMI Calculator for that particular loan is highly recommended. Moreover, on this site, you can find those loan-specific calculators like the personal loan EMI calculator, car loan EMI calculator, business loan EMI calculator, and loan against property EMI calculator. Additionally, bank-specific calculators like HDFC Home Loan EMI Calculator and SBI Home Loan EMI Calculator are also available.
The use of an EMI calculator for home loans has a lot of additional benefits. Here are a few of them:
- Makes Computation Simpler
Calculating a home loan is a difficult process that can take hours to complete. Thus, the calculator makes it effortless for you to evaluate EMI. This will help you with the probability of getting the loan before submitting the application and required documents.
- Use It Anytime, Anywhere
You may compute all the loan-related facts from anywhere at any time with the use of an online home loan calculator. The principal amount, interest rate, and tenure are the variables you need to compute the values and save time by getting instant results in the comfort of your home.
- Easier to Compare Loan Offers
It is crucial to check the home loan interest rates being given by several financial institutions before purchasing one. Interest rates differ from bank to bank. The duration of a loan is longer than that of other loan products, so even a tiny difference in the interest rate will significantly impact the monthly payment and the total amount of interest accrued on the principal loan amount.
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