Home Loan EMI Calculator 2024
The home loan market in India has seen significant growth over the past few decades, driven by factors such as rise in disposable income, people’s desire to have their own homes, proliferation of gated communities all over India. Banks and non-banking financial companies (NBFCs), offer a range of home loan products with competitive interest rates and flexible repayment options.
People are availing home loans primarily through:
Online Platforms: Digital marketplaces like Fincover allow users to compare various loan offers and apply for loans conveniently.
Bank Offers: If you have a good relationship with bank like having a savings account for a long period, maintaining good balance, having high-value fixed deposits, then banks will go out of the way to offer you home loan to build your dream home
What is a Home Loan EMI?
A Home Loan EMI (Equated Monthly Instalment) is the fixed amount that a borrower pays each month as a repayment to the lender for the home loan he/she availed. It includes both the principal and the interest components.
What is a Home Loan EMI Calculator?
Calculating the Home Loan EMI which carries both the principal and interest part can be complex. A Home Loan EMI calculator helps you to determine the EMI based on the loan amount, tenure, and interest rate. By entering these details, the calculator will provide the EMI that you are obligated to pay towards the loan taken
How Does Home Loan EMI Calculator Work?
Home Loan calculator uses a formula to compute the EMI. You must input the loan amount, tenure, and the interest rate and the calculator automatically computes the EMI you need to pay. It also provides an amortization chart
Formula for Home Loan EMI Calculation
EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
Where
- P is the principal loan amount,
- r is the monthly interest rate, and
- n is the number of monthly installments.
Example
For a loan amount of ₹60,00,000 at an interest rate of 7.5% for 20 years, the EMI will be approximately ₹40279.66
Benefits of Home Loan EMI Calculator
- Accurate EMI Calculation: Easily calculate your monthly EMIs based on loan amount, interest rate, and tenure.
- Financial Planning: Helps you plan your future by giving a clear representation of how much amount you will pay each month
- Comparison Tool: It can be used to compare EMIs from various financial institutions so that you can take a better informed decision
- Time-Saving: Eliminate the hassles associated with manual calculation
How to Use Home Loan EMI Calculator?
- Enter the Input amount, tenure, and interest rate
- The EMI calculator will automatically compute the EMI and total interest rate towards the loan.
FAQs for Home Loan EMI Calculator
1. How does the calculator incorporate changes in interest rates during a floating rate loan?
The EMI calculator can simulate fluctuating rates by recalculating your EMI whenever there is a fluctuation in Home loan EMI calculator
2. Does prepayment impact only EMIs or the tenure too?
Prepayments can reduce either the EMI or the tenure, depending on the amount that you pay and your preference for the same.
3. How accurate are the results of the EMI calculator?
A Home Loan Calculator will help you instantly compute the exact EMI that you are going to pay.
4. Does the calculator display the amortization schedule?
Some calculators also show an amortization schedule, giving a breakdown of the principal and interest components for each EMI.
