Home Loan Calculator

Today every individual apply for a loan for different causes and borrows money under different types of loan such as personal loan, payday loans, home loan, vehicle loan, etc. So for repayment of the loan the borrower tries to know different ways to repay his/her loan. In this case the use of loan calculator is very important.

The loan calculator is very useful for borrower to calculate the monthly installments of repayment of his/her loan. Almost all reputed financial institutions and banks like HDFC, ICICI, AXIS, etc. provide their loan calculator for borrowers’ convenience. These Loan calculators help the borrower to arrive at a comfortable EMI. This will help them to plan their borrowings as well as loan payments according to their requirement. 

 
home loan calcilator
EMI is the Equated Monthly installment which is paid to the banks or financial institution until fully repayment of loans. It consists of interest as well as principle amount to be borrowed. The interest of loan is higher initially and reduces with payment of EMI. With each successive payment borrower will pay more towards principle and less towards interest. 

The formula to calculate EMI is as Follows. This formula is applicable for all types of loan including home loan.



home loan calculator

Where

E    =  EMI
P     = Principle loan Amount
r     =  Rate of interest calculated on monthly basis
n     = Loan duration

Calculation of EMI for different combinations is very lengthy and difficult. So, EMI calculation on Loan calculator available on different authorized sites is reliable.

The Loan calculator is very easy to use. You can calculate EMI for different types of loan such as home loan, personal loan, etc. You have to enter following information in respective fields on loan calculator 
  • Principle Loan amount (P) 
  • Loan duration (n)
  • Rate of interest in percentage (r)

You can enter or change the values in the fields with slider or manually. Each time the calculator will give you updated EMI. In the case of home loan calculator after entering the P, n and r you will get the home loan EMI. In some home loan calculator pie charts giving information about break up of principle and interest are provided.

While calculating the EMI on Home loan calculator you have to consider variable rate EMI because the amount borrowed will be high and fluctuations in the interest rate may change your EMI up to great extent. In this case you have to observe your Emi for two extreme cases i.e. optimistic scenario and pessimistic scenario.

The optimistic scenario is deflationary and you have to assume that rate of interest will come down by nearly 1% to 3%. In this case calculate the EMI and it will come down or you have to reduce the duration of loan repayment.

The pessimistic scenario is inflationary and you have to assume 1% to 3% hike in the interest rate and calculate the EMI. It may cause high increase in EMI.

Generally home loans have large principle amount and tenure of repayment. So, it is very important to calculate the EMI on home loan calculator to plan your monthly installments. 

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3 comments:

  1. Read your blog its really informative and keep updating with newer post on home loan calculator

    ReplyDelete
  2. Thank you for sharing such great information. It is informative, For More Details Visit: Home Loan Calculator

    ReplyDelete
  3. "Mortgage Loan Software is very important when you are working in a mortgage industry. All the loan officers, mortgage brokers and loan processors need a way to organize and keep track of all their loans in their pipelines"!!

    ReplyDelete

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