Individuals put in a lot of effort to fulfil their basic needs. Shelter is one of these necessities; it might need to be clarified whether to own or rent a home. However, with constantly rising costs for housing, it becomes difficult for people to satisfy this fundamental need. Therefore getting a home loan is one of the simplest ways to fulfil your dream of owning a house.

Through the Equated Monthly Instalment (EMI) facility, a housing loan gives you financial resources and a convenient repayment mechanism. However, you should always calculate the EMI amount before applying for a home loan. After all, procuring a housing loan is a significant financial commitment.

A set monthly payment while repaying your home loan is known as an Equated Monthly Instalment (EMI). A percentage of the principal amount borrowed and the interest component charged on the borrowed money is included in the EMI. 

You can determine the loan's monthly EMI by the amount borrowed, the interest rate charged, and the time duration taken to repay the loan. As a result, the EMI amount is often lower for home loans with longer tenure and higher for loans with shorter terms.

Why should you use a Home Loan EMI Calculator?

Calculating a home loan is a challenging job. The lengthy and tedious mathematical calculation can take hours to complete. Therefore, when it comes to EMI calculations, using an online home loan EMI calculator can significantly simplify your life. The following are many benefits of using a home loan EMI calculator:

1. Simple to Use, Fast & Accurate Calculations

Making manual mathematical calculations to predict EMI amounts are prone to mistakes. You can resolve this issue with the help of a house loan EMI calculator, which consistently produces accurate results within seconds.

2. Helps in Futuristic Financial Planning

The EMI loan calculator will assist you in preventing future financial difficulties. In addition, you may plan your budget more effectively and receive an amount that suits your budget and other expenses if you know your home loan's EMI in advance.

Consumers can compare loan offers from various banks using a loan calculator. In addition, the online loan calculators display the overall cost of borrowing along with the monthly EMI amount. This comparison would enable consumers to select a loan that best suits their needs.

You don't have to worry about security concerns using a free online home loan EMI calculator. You don't have to reveal your personal information and identity, making it safe to use.

How do you Use a Home Loan EMI Calculator?

Determining the monthly EMI amount with a home loan EMI calculator is simple and quick. However, before using any loan calculator, you should have a rough idea of the principal loan amount you require and the monthly EMI amount you can pay depending on your annual income and expenses. 

The following is the basic formula used for calculating home loan EMIs:

Home Loan EMI = [p x r x (1+r)^n]/[(1+r)^n-1]

"p" indicates the principal or loan amount

"r" stands for the monthly interest rate 

"n" denotes the number of monthly EMIs or the duration of the loan in months

You only need to enter the required principal loan amount, the agreed interest rate and the loan tenure while using a house loan EMI calculator. Then, you can promptly calculate the EMI amount using the online tool.

For example, someone takes a home loan for Rs. 1 crore with a 15-year tenure and a 12% interest rate. Thus, using the formula:

Home Loan EMI = [1,00,00,000 x 12 x (1+12)^15] / [)1+12)^20-1]

You may quickly determine the exact amount using a house loan EMI calculator, which in this illustration should be Rs. 1,10,108.

You can use a house loan EMI calculator to determine information, including the loan amount, interest rate, tenure, monthly EMI amount, and the total interest you need to pay. At the same time, you decide to procure a home loan.

Housing loan EMI calculators are available from several trusted financial resource providers and are easy to use. With only a click, you can determine the proper EMI amount by entering the loan amount, interest rate and loan tenure.