People may need to buy a house at any point in their life. But before that, they need to think properly.

They will need to think about many factors before taking such an important decision in their life because buying a house is not something to be done overnight. People looking to buy a housing property need to take into account their economic standing, budget, and future savings plan for this big choice.

People who want to want to buy a house also need home loans. This helps them to deal with huge amounts of money to spend on houses. So how should we calculate EMI for our home loans with a Home Loan EMI Calculator? And how will it help us to know in more detail about the loans we are about to take? Let us find these out.

Basic points about a Home Loan EMI calculator

When you are planning to take a home loan, you need to calculate the EMI. A Home Loan EMI Calculator comes in handy while doing that. Using such an EMI calculator, you can make better decisions as to buying a house.

This is because calculating EMI will help can understand a lot of details regarding your EMI for yourself. It is very useful for you to plan your cash flows. It also helps in better servicing of your home loan. This calculator is very easy to use. It is also a great planning tool for those willing to buy a house by taking loans.

How is EMI Calculated with a Home Loan EMI Calculator

Find an illustration below of the formula in which a Home Loan EMI Calculator can help you calculate EMI for your home loan.

The formula is as follows:

P x R x (1 + R) ^N/[(1+R)^N-1], where

P = Principal Loan Amount,

N = Loan tenure (In Months)

R = Monthly rate of interest

Annual rate of interest/12/100 = R

Please also note that the interest rate is calculated on a monthly basis.

How a Home Loan EMI Calculator helps in better choices regarding home loans

• A Home Loan EMI Calculator helps you to get a clear understanding related to your EMI amounts payable against a home loan.
• It gives you the scope to make better decisions regarding the monthly cash flow for your home loan in terms of EMI.
• It also helps you to calculate the amount of home loan that you will be able to take based on your budget, future investment capabilities, and preference across a wide range of residential properties.
• It helps you understand the requirements related to your own financial contributions and the cost of the property you are about to invest in.

Thus, an EMI calculator for home loans helps to understand if you are eligible for a loan or not. It will also let you properly plan your investment.

How do you use a Home Loan EMI Calculator?

Normally, you can very easily use a Home Loan EMI Calculator. You can go about with simple steps and easily calculate EMI.

• Input loan amount: To calculate EMI, the first step that you need to follow is to input the amount. Input the amount of money you want to get as a loan.
• Tenure of the loan (in years): The next thing you need to do in order to calculate your home loan EMI in an EMI Calculator for home loans, is to input your desired tenure. Input the amount of time or the period for which you wish to take your loan. You should also remember something else about the time period of your loan. The longer the time is, the easier it will be for you to repay it. Input interest rate: In order to calculate the EMI for your home loans, the last step that you need to follow is to put in your interest rate calculated in percentage per annum.

What are the benefits of using a Home Loan EMI Calculator?

After reading this article, you must have understood why knowing about EMI is important before taking loans. All who are planning to buy a house and need a loan should think about a lot of factors.  A Home Loan EMI Calculator will help you as you plan your monthly payments after taking a loan. So what are the many benefits you will have by using such a calculator? Keep reading to find out.

• Advance planning: A Home Loan EMI Calculator helps a lot in advanced financial planning for greater confidence in a big decision like taking a home loan.
• Easy to use: EMI calculators are very easy to use. You can calculate EMI by just entering in the amount of loan, time period, and interest rate. Some EMI calculators can also help you by breaking up the interest and principal amount of money. They will show you how much you need to pay in a given time. This will show you what to do to repay the loan.
• Brings focus on property search: A Home Loan EMI Calculator helps you find the best home loan amount suitable to the constraints and limits of your budget. According to your financial position and investment planning, the EMI calculator will help you find the perfect tenure of your loan. This in turn helps to bring more focus to your property search.
• Easy to access: An online EMI calculator for home loans is easily accessible on the web from anywhere at any time. You can also try various combinations of the input variable as many times as necessary to arrive at the right amount for home loan, EMI and the tenure best suited to their needs.

Final Note

A Home Loan EMI Calculator is a great tool for home loan takers to make an informed decision regarding monthly installments against that loan. This article illustrates how EMI calculators can easily calculate the EMI amount and help make more informed decisions by indicating the perfect tenure and focusing on property search.