A Home Loan EMI calculator allows you to calculate the Loan instalments or EMIs you must pay the bank until the end of the tenure. After calculation, the equated monthly instalment amount you receive depends on your Loan amount, interest rate, and tenure. It is amongst the best financial tools for a person desiring to purchase a home. Its features include:
- Comparative analysis
With the assistance of a Home Loan calculator, you can compare Loan schemes offered by different banks and calculate how much money you can save by opting for a scheme from a particular bank.
- Look out for options
To determine the total mortgage cost, the applicant can enter different Loan amounts, tenures, and interest rates in the online calculator to assess various payment options. You can compare Housing Loan schemes and look for the most affordable ones that fit your financial status without strain.
- Repayment scenarios
Applicants can use Home Loan calculators to get results based on their repayment schedules by entering details such as monthly payments, interest rates, and Loan tenure. You can get a good idea of your EMI amounts comprising the principal and interest payments over the tenure and adjust the parameters to arrive at an affordable scheme.
- Customised calculations
A Home Loan calculator allows the applicant to get customised results by entering the type of interest rate, amortisation period, and Loan amount.
- Handy and quick
Home Loan calculators are extremely easy and convenient to use. They can make calculations in less time and help an applicant get an overview of the Loan options available in the market. You escape the probability of errors involved in manual calculations while saving time and energy.
- Helps understand the product better
Since Home Loan calculators are easy to use, they help better understand the products and services instead of having a rich description in text formats. These are user-friendly and do not involve complex formulas for calculating the results. You get the results in a tabulated form, offering a breakup of the principal, interest, EMI, and maturity amounts.
- Retains customer satisfaction
Various banks now include tools like the Home Loan calculator on their Online Banking platforms, ensuring customers a safe borrowing journey. This helps attract more clients and retain their satisfaction.
Conclusion
The formula used by the calculator to compute the EMI for Home Loans is EMI=[PxRx(1+R)^n]/[(1+R)^n-1]. In this equation, P is the Principal Loan amount, R is the interest rate, and N is the number of monthly instalments.
In the results, you would see the EMI, a breakup of interest portions in the EMI, and the Loan payments, including the repaid principal Loan amount and the interest paid out of the EMI till the end of the tenure. They vary based on the inputs entered and owing to the difference in interest rates.
