Calculating your home loan EMI before buying a home is an essential prerequisite. This helps people i.e. potential loan applicants improvise their repayment plan as per their repayment capacity which further makes repaying easier. If you believe it makes sense, here’s how you can calculate your monthly EMIs. 1. Manual Calculation: Before the arrival of EMI calculators, bank officials used to manually calculate the applicable EMI themselves. So, if you don’t trust technology and want to take the matter in your own hands, you can use the formula and do it yourself. The mathematical formula for calculating EMIs is: EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month. That said, if you do trust technology and want to get done with EMI calculation quickly, below is how you can use a housing loan EMI Calculator. 2. EMI Calculator Formula: Home loan EMI calculator is an online tool and it is quite like your everyday calculator. The only difference is, this particular calculator is pre-equipped with EMI formula.
How to Use Home Loan EMI Calculator? The simplest way is to navigate to online calculator page and fill in the required details: (1) Loan amount, (2) interest rate, and (3) tenor of investment. Once you are done with sharing these details, click on ‘submit/ calculate’ button and you’ll get the required results along with your repayment schedule. Reference Read: The Different Methods of Calculating Home Loan EMI
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |