Know all About How to Calculate Home Loan EMI in a Few Steps

Ramesh Kumar March 21, 2023

A home loan EMI calculator is an online tool that calculates your EMI in real time based on the loan amount, tenor period, and interest rate you require. You can calculate your total interest payable, total principal payable, and loan amortization schedule in addition to your EMI. These particulars will help you better understand your financial situation by allowing you to plan your finances based on your repayment capacity.

A home loan EMI calculator is based on an algorithm that produces error-free and accurate results every time, eliminating the need for you to be concerned about human errors when performing these calculations manually. Because you will be paying this amount for the duration of your tenor period, your monthly instalment is the most important aspect of your home loan.

Here are some of the benefits of using a home loan EMI calculator:

  • A home loan EMI calculator will allow you to better understand how much you can borrow based on your financial capacity.
  • Based on the information provided by an EMI calculator for a home loan, you will be able to establish your home loan eligibility criteria.
  • You can compare the multiple offers that you receive from lenders and decide on the housing loan interest rate based on your affordability.
  • You can decide if you want to opt for a long-term or short-term loan.
  • You can decide the amount you want to pay towards your home loan down payment.
  • You can plan your finances accordingly to ensure that you make timely repayments.
  • You can compare the lending terms between the two lenders using a home loan EMI calculator if you want to choose a home loan balance transfer.

Here are the steps to using a home loan EMI calculator:  

Step 1: Go to one of the numerous online home loan EMI calculators.

Step 2: Fill in the blanks with the necessary information:

  • Required home loan amount. 
  • Interest Rate 
  • Home loan tenor 

Step 3: Submit your information to see the following results:

  • Monthly Installments (EMI) for the tenor period. 
  • Total Interest Payable 
  • Total Principal Amount 
  • Loan Amortization Schedule 
Ramesh Kumar

Posted by Ramesh Kumar

Ramesh Kumar is an experienced financial advisor who is well known for his ability to foretell the market trends. I love to share my knowledge and expertise with people who are interested in finance and business. I have written numerous pieces on home buying, housing finance, financial investment, etc. and how they affect the customer in the present market scenario.

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