How can you use a home loan calculator in 2023?

People with dreams of owning a brand-new property should wait no further. A home loan is ideal for those who want to buy a new place but lack money and opportunity. However, it is not as easy a process as it sounds; instead, it is quite the opposite considering the debt amount and loan tenure. Hence, proper planning is pivotal.

And, in this planning process, a home loan calculator will be the best option for you. You can use this calculator and get to know your EMI amount in seconds.

How to Use a Home Loan Emi Calculator?

A housing loan calculator is an online financial tool that would estimate your home loan monthly instalments that you will have. Moreover, using this online financial tool is very simple as all you have to do is enter your loan amount and the tenure of your loan in years, the going home loan interest rate will be applied to your home loan. Within seconds you can see your estimated value of EMI on the screen.

Moreover, if you want to calculate your home loan EMI manually, you can use a formula that is: P x R x (1+R)^N / [(1+R)^N-1]

In this formula, 

P= Principal amount

R= Monthly rate of interest

N= Loan tenure in months

This rate of interest (R) is calculated per month, R= Annual interest rate/12/100

Features of Home Loan Calculator

A few features of the home loan calculator will help you with the difficult task of calculating your EMI amount per month. This calculator helps you by –

• Showing you the total amount to be paid till the very last date.
• Giving you a proper estimation of your monthly EMI.
• Giving you the opportunity to compare your EMI at multiple rates of interest to find out which one is the most feasible for you.

Please note that the EMI calculation rendered will not be the exact amount. There may be some additional fees and charges that your lender may charge. These are not factored in to the calculations.

Benefits of Home Loan Calculator

Here are some benefits of a home loan calculator that you should know to make a wise decision by using this calculator for your home loan.

• Simple Usability

Home loan calculators are indeed straightforward to use. You can use this calculator by visiting your lender’s online website. Once you will see your EMI to be paid, total interest to be paid and your total debt, all in a very organised way.

Moreover, the user interface of most of the calculators is clean and easy to understand. Hence, even if you are not familiar with the jargon of a loan, you can also use this device and understand the loan details.

• Compare Different Offers of Home Loan

Since loan amount, tenure, interest rates and other loan terms vary across lenders, this digital tool gives you the opportunity to compare different lenders before making a solid decision. You have to enter the loan details from various lenders and get the result EMI on the screen. This way, you can see the difference between EMIs and choose the most suitable loan offer.

• Loan Amortisation Schedule Accessibility

Another significant advantage of using this tool is the accessibility to loan amortisation schedules. This table makes you understand your loan better by giving details about various things. Here you can see how your loan is progressing throughout your tenure; you can see how much of your EMI goes to your principal, interest repayments, etc. 

Also, access to the loan amortisation schedule will help you to plan your part payments. You will know that most of your EMI go to your interest payments in the initial years. Therefore, you can plan to make part payments in the initial years so that your loan burden comes down and you can save money as well.

• Accurate and Quick Results

To avoid any risks or complications regarding your home loan, you can use this calculator to estimate your EMI before applying for a home loan. This online tool will give accurate results within a few seconds. And the result will help you think wisely and make a decision accordingly.

• Free for Everyone

The home loan EMI calculator is free for everyone to use. Before taking a home loan, you just have to visit the online portal of your lender, and you can see the calculator. You can enter the required details, and it will show the results on the screen.

Additionally, you don’t need to enter your personal details to access this financial tool. It is a significant advantage.

• Customisable

This online calculator is dynamic. Therefore, you can alter the values as many times as you want to see and compare different results. You can change the loan amount, tenure and interest rate with the sliders to see different results. Or else you can also enter the values manually.

You can get these benefits by using a home loan EMI calculator. It will definitely help you go through different options and choose a loan offer that suits you the best. 

Parting Thoughts

It is a troublesome process to calculate your EMI before choosing a loan, yet it is essential to manage your finances in a better way. However, it is also difficult to always run to an accountant to calculate and get an estimation which often can be wrong.

In such cases, opting for an online financial tool like a housing loan EMI calculator is the correct option. It helps you manage your finances better by giving you results accurately and swiftly. Therefore, if you plan to get a home loan, use this loan EMI calculator to know and understand your loan better.