How The Home Loan EMI Calculator Manage My Payments?

While borrowing a loan for the financing of your house every individual does the calculations. And to make those calculations easy for you there is a home loan EMI calculator offered by every bank or financial institution. The EMI word associated with the calculator denotes the equated monthly installment. As you know payment of the loan is paid in EMI and if you skip an EMI a penalty would be charged. So to manage those payment issues of your home loan you can use the calculator. Read this article to know the functions of the home loan EMI calculator and its benefits.

Calculations of the home loan EMI calculator!

The home loan calculator works in a mathematical formula of [P x R x (1+R)^N]/[(1+R)^N-1]. Here in this formula P is the loan amount you have borrowed for the home finance and N is the duration of payment. And R is the rate of interest charged on your loan amount for the duration. If you have applied for a home loan with a floating rate of interest then you can check regularly the next EMI with the help of a home loan EMI calculator. Because it gives the result taking the interest rate fixed for your loan.

To understand it better take an example, a person borrowed INR 3 lakh for the home renovation at an interest rate of 12.45% for 5 years, the computed EMI for the period would be INR 6,748. He decides to foreclose the loan in the rest of 3 years, now his outstanding balance is INR 1,42,580 out of which INR 21,811 is the interest rate. So to save his time he paid INR 5,000 foreclosure fee and completed his home loan and met his needs.

What is the advantage on my home loan, if I use an EMI calculator?

There is a long list of benefits you can get when you use the home loan EMI calculator. Have a look at them in the below-mentioned pointers.

Payment without delay: You can not miss a single payment of your home loan EMI if you know about them do not you. So insert your loan details and generate your EMI and avoid the dues and late payment. Because banks and NBFC provide you with the loan to make your living comfortable.

Select desired duration: If you don’t know which is the best time for your home loan payment EMI calculator will help you with that. Enter your details of the home loan and change tenure according to your needs. Or, choose the loan tenure in which your loan amount and interest rate fits the best and EMI comes under your monthly income.

Make prepayment or foreclosure easier: It also helps you with the prepayment of the loan as you can check your outstanding balance and rest of the interest rate. Because most of the users want to get rid of the loan quickly and save the interest rate amount of their home loan. 

Now, whenever you apply for a home loan do not forget to use the EMI calculator. Because it will give you an insightful idea for your loan payments.