A Home Loan EMI Calculator helps you figure out your monthly loan payment, or EMI, for your mortgage. It serves as a tool for financial planning for home buyers and is simple to use. You can use a home loan EMI calculator to help you decide on the purchase of a new property. Moreover, planning your cashflows for house loan servicing using the EMI calculator is helpful.
Additionally, employing a house loan EMI calculator will assist you in figuring out the length of your loan and the repayment schedule. Simply input the parameters for the desired loan amount, term, and interest rate into the calculator. The calculator will then display the total interest due and the EMIs that apply to the loan's term.
Formula to calculate home loan goes like:
P x R x (1+R)^N / [(1+R)^N-1]
Here, P stands for Principal amount, N stands for Loan tenure in months, R stands for Monthly interest rate.
For instance, if an individual avails of a loan of ₹ 12,00,000 at an annual interest rate of 8% for a tenure of 12 years (144 months), then his entire amount payable will ₹ 24,80,973. The monthly EMIs will stand at (24,80,973 /144) ₹ 17,228.
As is clear, using the procedure to manually calculate the EMI might be time-consuming. You can easily calculate your loan EMI with the help of NDTV Profit's EMI Calculator.
A home loan calculator can help you in many ways. They include:
1. It aids in budgeting your spending in line with your income.
2. Indicates the total amount of interest you'll be paying when your loan term is over.
3. It aids in helping you decide, in accordance with your budget, whether to lengthen or shorten the term.
4. It is a quick and simple tool that anybody can utilise.
5. It is dynamic, and changing the figures is simple.
It eliminates the need to provide your personal identity and other information. This is the best method to compute house loan EMI information without being concerned about security.
Additionally, based on your home loan request, you can determine your EMI in advance utilising an EMI calculator. This will enable you to organise your payments and let your lender know that you have a strategy in place. Users don't have to perform lengthy and difficult calculations because it is free to use as often as they like.