Saurabh Gupta
Anvi Staff answered 2 years ago
A home loan EMI calculator is a tool that helps you calculate the monthly instalments (EMI) you will need to pay towards your home loan. EMI stands for “Equal Monthly Installment” and is the amount of money you will need to pay to your lender every month to pay off your loan.
The calculator uses the following inputs to calculate the EMI:
-
- The loan amount you wish to borrow
- The interest rate on the loan
- The loan repayment tenure (in months)
It then uses an mathematical formula to calculate the EMI, which is usually the following:
EMI = P x r x (1+r)^n/((1+r)^n-1)
Where:
-
- P is the Principal or loan amount
- r is the rate of interest per month
- n is the number of monthly instalments
Once you have entered all the details, the calculator will give you the EMI amount that you will have to pay each month. It also shows you the total interest paid over the loan tenure and the total amount paid (Principal + Interest). This helps you plan your finances and budget accordingly.
It is important to note that the EMI calculator is an approximate tool, and the actual EMI may differ based on the lender’s terms and conditions.
KITAPP KITAPP Staff answered 2 years ago
A home loan EMI calculator is a tool that helps you calculate the monthly instalment (EMI) you will need to pay towards your home loan. EMI stands for “equated monthly instalment” and it is the amount of money that you will need to pay to the lender each month to repay the loan.
The calculator uses the following inputs to calculate the EMI:
- The loan amount: the total amount you are borrowing from the lender.
- The interest rate: the percentage rate at which the lender charges interest on the loan.
- The loan tenure: the number of months over which you will repay the loan.
The calculator typically works by taking these inputs and applying the mathematical formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where P is the principal amount (loan amount), R is the rate of interest per month, and N is the number of monthly instalments.
This formula calculates the EMI by taking into account the interest rate, the loan amount, and the loan tenure. It uses this information to determine the total interest you will pay over the course of the loan, and the monthly payments required to pay off the loan in full by the end of the loan tenure.
A home loan EMI calculator can be a useful tool for anyone looking to take out a home loan. It can help you estimate your monthly payments, and it can also help you compare the costs of different loan options. This can help you make a more informed decision about which loan to choose, and it can also help you plan your finances more effectively.