How Does a Home Loan Calculator Work? - Loan Trivia


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Friday 1 July 2022

How Does a Home Loan Calculator Work?

Housing loans are long-term liabilities, which can last for 20 years or more in some cases. Therefore, before availing such a credit, potential borrowers must undertake extensive financial planning. A home loan calculator can help significantly in this process.

What is a home loan EMI calculator?

Such calculators are online tools using which potential borrowers can determine their monthly liabilities from a home loan. To find out the exact EMIs that one must pay, he/she would need to enter certain specific details of the credit in question. These include –
  1. Principal amount or loan amount
  2. Loan tenor
  3. Home loan interest rate charged by a lending institution
Using all of these pieces of information, a home loan calculator computes monthly instalments. Additionally, borrowers can also acquire an idea about the total interest cost for the said credit. Some financial institutions’ calculators may also divulge the amortisation schedule for a home loan upon EMI calculation.

How to calculate home loan EMI using this calculator?

Calculating your loan EMI is simple using such online tools. All you need is to follow the steps mentioned below to acquire an estimate of your monthly liabilities – 
  • Step 1: Visit your financial lender’s official website and find the home loan EMI calculator page.
  • Step 2: Once the calculator page opens, fill out the various fields with appropriate details of your loan. Enter principal amount, repayment tenor and interest rate quoted by your chosen housing finance company.
  • Step 3: After entering all necessary data, click on ‘Calculate’.
Thus, using a calculator is not only beneficial but also simple. A potential borrower must always compute EMIs beforehand to ensure repayment without additional financial burden. 

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