The House Loan Calculator Makes Loan Planning Easier

Purchasing a new house or refurbishing an old one demands a huge sum. It is a financial move that one needs to ponder for quite a long time before proceeding. However, if you are opting for a home loan, then you must be completely aware of how a house loan calculator can make the process a lot easier. Using a housing loan EMI calculator doubles your chances of getting a house loan that suits your budget.

What is a Housing Loan EMI Calculator?

A house loan calculator is an online tool designed to calculate housing loan EMIs. Most lenders offer this feature for the convenience of borrowers. All you have to do is provide the home loan amount you wish to apply for, choose an affordable housing loan interest rate, and pick a suitable loan tenor. The EMI calculator instantly works out the estimated amount you will be paying every month till the loan is repaid. The online calculator also helps determine an appropriate housing loan amortization schedule based on your financial health. 

Top 5 Benefits of a Housing Loan Calculator 

There are multiple benefits of using a housing loan EMI calculator. Below, we discuss some of the benefits. 

• Easy to Use

The online housing loan EMI calculator is extremely user-friendly, which certainly makes the job easier for first-time borrowers. It does not involve too many complexities and can be accessed from anywhere through a Smartphone, laptop, or computer.

• Accurate Results 

The chances of making mistakes when calculating the numbers manually are higher – furthermore, the process is taxing and time-taking. However, when using an EMI calculator to calculate the housing loan, one can rest assured that the results are accurate and free of errors. This is because the online tool uses a mathematical formula, which cannot go wrong. This also saves ample time as you can simply check the results with a tap of your finger.

• Aids Financial Planning

A housing loan EMI calculator helps you plan your finances ahead of time. Once you have an estimate of the monthly instalments, you can sort your funds, make a prepayment schedule if needed, and pay back the home loan before the end of the loan tenor.

• No Restriction on Usage  

The online tool comes with zero restrictions on its usage. This means one can use it as many times as needed and try out various combinations until the desired result is achieved. Thus, it also helps compare EMI options offered by different lenders. 

• Fee and Secure 

A housing loan calculator is available free of cost on the lender’s portal. One of the many reasons why it is preferred by borrowers is because it keeps the identity of an individual safe, thus offering a risk-free experience.  

As a borrower, you should consider all your financial angles before applying for home loan. It is important to take the source of income, monthly expenses, and existing liabilities into account to complete the home loan repayment process smoothly. It is also advisable to review your financial status occasionally to make sure you have enough savings after paying the monthly instalments. 

How to Use a Housing Loan Calculator?

As mentioned, the steps to calculate housing loan EMI using an online calculator are quite simple:

• Log in to your chosen lender’s portal.
• Access the online ‘Housing Loan EMI calculator. 
• Enter the following:

1. Principal amount (P)
2. Housing loan interest rate (R)
3. Loan tenor (N)

• Get the estimated value of your monthly payable EMIs 

As per the mathematical formula, 

Your monthly EMI = P x R x (1+R)^N / [(1+R)^N-1] 

Now that you are well-versed with a housing loan calculator – its uses, benefits, and how it works to make your home loan planning easier, look for a lender who can offer you the best home loan deals and attractive housing loan interest rates. Also, it would be wise to opt for a longer tenor so you can spread out the EMI payouts evenly without feeling the burden on your shoulders.