When borrowing a home loan, its affordability is the primary factor that influences your ability to repay it. This affordability in turn depends on several factors including the tenor of the loan, the principal that you want to borrow, and the rate at which you are borrowing funds. The home loan EMI calculator allows you to make sense of this information and judge a loan’s pros and cons. Using it can help you ascertain your monthly expenditure towards repayment, as well as evaluate if the loan is pocket-friendly. So, it is essential to understand how to calculate home loan EMIs yourself. Before you proceed with calculating your EMIs, take some time to understand what the EMI calculator really is.
As mentioned before, the home loan EMI calculator is a handy online tool that simplifies the calculation of your home loan EMIs. It shows you the influence of the principal, interest rate and tenor on your EMIs. Its results help you see what your exact expenditure towards the loan will be, and allow you to compare it with that of other home loans. Now that you know what the EMI calculator does, take a look at the two ways in which you can calculate the EMIs for your home loan.
1. Using a formula
In order to calculate EMIs for your home loan, you can use the following formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
In the above formula ‘P’ represents the principal amount, ‘R’ determines the rate of interest calculated on a monthly basis, and ‘N’ is the length of your tenor. You can feed in the numbers into the formula and calculate the value of each EMI.
2. Using an EMI calculator
Calculating your EMIs manually is time consuming and does not guarantee accurate and error-free results each time. So, use the home loan EMI calculator instead. It will give you results quickly and correctly, every single time.
Simply visit your preferred lender’s website and look for the home loan EMI calculator tool. Adjust the slider or input the amount pertaining to the principal, tenor and interest rate to see the EMIs that you will have to pay.
When you use the Bajaj Finserv home loan EMI calculator, you benefit from being able to view your total expenditure. The results will tell you the total interest that you have to pay, the full amount that you have to pay—including principal and interest, as well as the EMIs. The results are accompanied by a visual representation of the repayment schedule, making it even more informative.
Using a housing loan EMI calculator not only helps you save time, but it also benefits you in the following ways.
• It has a simple interface that makes the calculator user-friendly
• You can use the calculator multiple times, anytime and anywhere
• You can use the home loan EMI calculator to compare results from various lenders and choose the one that offers you the best deal
• You can see your financial obligation even before you apply for the loan and plan your finances for repayment accordingly
So, if the question uppermost in your mind is how to calculate loan EMI, simply use the home loan EMI calculator. This tool allows you to make an informed choice when it comes to selecting the best lender and loan offering. With this calculator, you can view your EMI in a matter of seconds and make an informed borrowing decision.