Home loan interest rates directly impact your EMI, which is the monthly instalment paid by the borrower towards loan repayments. Each EMI consists of the principal amount and the payable interest on the loan. When availing a home loan, borrowers should choose an appropriate EMI that does not adversely affect their monthly budget. A home loan calculator is a useful financial tool that can help you pick the right EMI for your housing loan.

What Is a Home Loan Calculator?

A house loan calculator is specifically designed with the objective of simplifying loan-related calculations. Manual computation could get complex and tedious with the possibility of errors. A housing loan calculator may be accessed online for free. You can calculate the EMI outgo for each month. The schedule and break-up of the loan principal and interest amount will also be seen alongside, enabling you to make suitable financial choices.

How Does a Home Loan Calculator Work?

Home loan EMI is influenced by the principal amount, repayment tenor and interest rate. Users need to enter details of these three factors to compute their effective EMI. You may even change their values and perform calculations using different combinations to view the results in seconds. This way, you can customise your loan as per convenience and budgetary requirement. You could also run comparisons of several other loan offerings to estimate the best deal. 

The calculator helps you perform the following functions:

• Alter the repayment tenor and loan amount to determine a comfortable EMI pay-out
• Analyses different loan schemes so that you can pick the best home loan and lender
• You can plan loan pre-payments using the amortization schedule
• It is easy to use and provides accurate results instantly, letting borrowers plan their investments better.

Also Read: All About Home Loans