Once you avail the home loan facility to buy your dream home, you need to repay the same in the form of EMIs over the tenure.
The home loan is a long-term commitment and affects your outlays and expenses till the time it gets repaid. And that is why it becomes vital to know about an exact home loan EMI amount before availing it. This way, you may know how much you need to adjust your expenses to make way for the smooth payment of the EMI each month.
To be sure of an amount, you can use the home loan EMI calculator on your lender’s website for free.
Here’s how the monthly home loan EMI gets calculated
The home loan EMI is calculated on the basis of a mathematical formula.
In the loan EMI formula, P denotes the principal amount, and R showcases the home
loan interest rate on a monthly basis. N denotes is the duration of the tenure. You can put in home loan numbers to calculate the value of the EMI.
- Open the home loan EMI calculator on your lender’s website.
- Enter loan details like your desired housing finance amount, tenure of repayment and the applicable rate of interest.
- Once you choose these elements, the home loan EMI calculator will showcase total interest + total payment (interest and principal) + exact EMI amount.
Using the home loan EMI calculator, you can know the precise EMI payment figure that you need to manage paying per month for the duration of the home loan. It saves your time and efforts in knowing the home loan EMI amount.
