Most people take home loans when they are buying a property, and for the same they would want to calculate the EMI or Equated Monthly Instalment precisely. Doing the calculation manually is a tedious job and one can go wrong anywhere. It is, therefore, safe to use the home loan EMI calculator- an online tool that will help you learn about the EMI as quickly as possible.
The home loan EMI calculator online tool requires minimal inputs and assures customized results.
What are the parameters that are required to use the loan EMI calculator?
- You need to include the tenure of your home loan repayment procedure by moving the slider.
- Also, write the loan amount on the slider tool.
- Input the interest rate in the designated field. Since the entered area is earmarked with the percentage (%) sign, you do not have to manually input it.
- When using the EMI home loan calculator, bear in mind about prepayments. You have to choose any of the options, yes/no, which shows as the final input.
The reasons why you should use home loan EMI calculator is that it has many advantages which include speed, simplicity of the process, free to use and experimental since it is capable of testing different interest rates along with varying tenure combinations.
Using the EMI home loan calculator, you can easily manage home loan repayments. How?
EMI home loan calculator is user-friendly and is particularly designed to simplify the tedious job. The calculation is performed in the shortest possible time. It is the best online tool to manage your home loans better than you had ever imagined. Now that we have discussed about EMI home loan calculator, let’s understand the formula used for calculating home loan EMI.
The basic formula to calculate the monthly instalment of your home loan is:
E= P x r x (1+r)^n/(1+r)^(n-1)
What is P?
P is the principal amount which is borrowed.
What is r?
R is the rate of interest which is provided on a monthly basis. Remember that the interest rate is provided annually. To include the interest rate on a monthly basis, you should use r=(annual interest/12)x100.
While this formula is used to manually calculate the EMI, it may not be accurate as the home loan EMI calculator.
How the online tool works?
The online home loan EMI calculator is a convenient and user-friendly interface. The essential inputs are loan tenure, loan amount, applicable processing fee, applicable interest rate, and along with this you have the choice of ‘yes’ or ‘no’ for pre-payment option. Then, click on the ‘’Calculate’’ button and you will get the desired result.
What are the benefits of home loan EMI calculator?
- The calculator helps to understand the differing financial charges like the processing fee value and total interest paid.
- The home loan EMI calculator enables to ascertain the EMI amount in seconds. With inputs such as rate of interest, loan amount and loan term, you will know the EMI amount payable.
- If you know the EMI value, it will help you choose the tenure of the loan. If the tenure is small, the EMI is higher.
- Also, the home loan EMI calculator helps you in loan management. If you have a special objective to pay off the loan before time, then the EMI calculator will help you make your choice.
Thus, using the home loan EMI calculator serves as the best way to calculate EMIs and to know how easily and quickly you can pay off the loan.
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