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5 benefits of home loan EMI calculator

# 5 benefits of home loan EMI calculator

finance
July 25, 2022
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home loan calculation is not an easy task. the complex manual mathematical calculation can take hours and can be tedious for many of us. using an online home loan EMI calculator can make your life much easier when it comes to home loan EMI calculations.

home loan EMI calculation formula

the simple formula to manually calculate home loan EMI and other details are provided below for your reference

home loan EMI = [p x r x (1+r)^n]/[(1+r)^n-1]

where,

• EMI: equated monthly installment,
• p: principal or loan amount,
• r: interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
• n: number of monthly installments or loan tenure in months.

in addition to the interest rate over the principal amount, the banks also charge a home loan processing fee which is added to the overall cost of the loan. you can negotiate the home loan processing charge with the bank to get a better home loan deal.

if you are planning to take a home loan then you can use a home loan calculator to figure out a lot of details related to the home loan amount, interest rate, tenure, monthly EMI, total interest to be paid, etc.

why should you use a loan-specific calculator?

there are multiple types of loan calculators available online the internet. however, it's highly advised that you should use a loan-specific calculator. a loan-specific EMI calculator is much easier to use and can make your work much smoother. there are different types of calculators available online for every type of loan, for example, car loan calculator, personal loan calculator, financial loan calculator, home loan calculator, etc. though the basic parameters for all types of loans are the same, there can be few aspects where you will need to use loan-specific calculators. hence, it's highly advised that you use a specific home loan EMI calculator to find out accurate details as per your requirement.

there are many other advantages of using a home loan EMI calculator. here are some of the key benefits of using a home loan calculator:

#1. makes calculation easier

home loan calculations are complex processes and can take hours to compile. however, it is extremely important to calculate all the details related to EMI and the total interest amount to be paid before you submit your documents for the home loan application process. the decision to take the right amount of home loan for the right tenure and at the right interest rate - all of these depend on calculation. hence, if you are planning to apply for a home loan, it's highly advised that you should use an online home loan calculator. with the help of a home loan calculator, you can calculate all the details related to a home loan in three easy steps. you just need to enter the home loan amount required, the interest rate offered by the financial lender, and the tenure of the loan. enter all three details and within seconds, the home loan calculator will display the EMI amount and the total interest to be paid against the selected principal amount.

#2. use it anytime, anywhere

with the help of an online home loan calculator, you can calculate all the details related to the loan easily from anywhere and anytime. you can change the variables - principal amount, rate of interest, and tenure - to calculate details as many times as you want to depend on your convenience. you can use an online home loan calculator to save time and energy on visiting a bank branch and figuring out complex home loan calculations that may drive you crazy. you can use the home loan EMI calculator in the comfort of your home.

#3. saves a lot of time

the manual calculation to figure out the details of your home loan amount and interest rates can be a tedious and time-consuming process. you would lose your interest and your patience during the process. to avoid all these situations, it is highly advised to take the help of a home loan calculator. a home loan EMI calculator works smoothly and is quite efficient in displaying fast and accurate results in the blink of an eye. home loan calculations are very important and hence, you can not go wrong with the numbers. with an online home loan EMI calculator, you can rest assured that the result will be correct every single time.

#4. makes it easier to compare home loan offers

when buying a home loan, it is very important to compare home loan interest rates offered by various banks. home loan interest rates vary from bank to bank. since home loan tenure is longer compared to other loan products, the slightest difference in the home loan interest rate can significantly impact the EMI amount and the overall interest amount paid against the principal loan amount. you can use a free home loan EMI calculator to find out the best home loan offer along with the respective EMIs.

#5. no need to reveal personal details

when you use a free online home loan EMI calculator, you don’t need to reveal your personal identity and other details. hence, it is the safest way to calculate home loan EMI details without worrying about security issues.

now that you know a lot about home loan EMI calculators, it's time to use one. embark on your journey to your new home with the help of a home loan calculator by CRED.

how to use a home loan EMI calculator?

the online home loan calculator is a very simple and easy-to-access tool. there are three main components of a loan - the loan amount required, the interest rate offered by the lender, and the tenure (in months/years) of the loan. you also need to consider and compare the loan processing fee and foreclosure charges offered by the bank. once you have all these details, you can easily compare loan offers online using loan calculators and find the best loan offer for yourself.

here's a step-step guide to use the CRED home loan calculator:

• open the CRED home loan calculator
• select the principal loan amount
• select the interest rate offered by the bank/financial lender
• select the loan tenure
• once you have selected/entered all three details, the CRED home loan EMI calculator will display the monthly EMI and overall interest to be paid on the selected principal amount.
• you can change the three variables - principal, interest rate, and tenure - to customize and compare the home loan offers by various financial lenders

while comparing the home loan offered by various banks, make sure you also include - the loan processing fees and foreclosure charges (if any).

use the CRED home loan EMI calculator now