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What is a Home Loan Calculator?
If you're planning to buy a house and don’t have enough funds, you will likely need a home loan to finance it. However, obtaining a home loan can be complex and overwhelming, especially if you're unfamiliar with the various factors that come into play when calculating your monthly payments. That's where a home loan EMI calculator comes in handy. A home loan EMI calculator is an online tool that helps you calculate the EMI (Equated Monthly Instalments) or monthly repayment amount (EMI) and interest.
How Does Home Loan EMI Calculator Work?
The working of the online home loan calculator is simple. You'll typically need to input information such as the loan amount, the tenure or duration (in years), and the interest rate. The calculator will then use this information to calculate the EMI. The home loan EMI calculator uses a simple formula to calculate the EMI.
Home Loan Calculator Formula
The formula used to calculate EMI for a home loan is as follows:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P = Principal amount
R = Interest rate per month (divide the annual interest rate by 12)
N = Number of monthly instalments or loan tenure in months
Let us consider an example to understand this better. If Anjali takes a home loan of ₹1,00,000 from a bank at an interest of 12% per annum for 5 years. Here is how the EMI would be calculated:
P = ₹1,00,000
R = (12/12)/100 = 0.01
N = 5*12 = 60
EMI = [1,00,000x0.01x(1+0.01^60)/[(1+0.01)^60-1]
EMI = ₹2,224.45 per month
However, manual calculations are time-consuming and are prone to errors. This is where an online home calculator by Angel One comes to your rescue. It calculates the EMI on your home loan in less than a minute without any errors.
How To Use Angel One Home Loan EMI Calculator?
The usage of the Angel One home loan EMI calculator involves a few steps as follows:
- Enter the loan amount.
- Enter the interest rate for the loan.
- Enter the duration of the loan in years.
Let us consider an example to understand how to use the home loan EMI calculator on Angel One better.
Suppose you want to get a home loan of ₹15,00,000 at an interest rate of 8% for a duration of 20 years. Enter these values on the Angel One home loan EMI calculator. The calculator computes the values as follows:
- EMI = ₹12,547/month
- Principal Amount = ₹15,00,000
- Interest = ₹15,11,184
- Total Payable = ₹3,011,184
The results show that the EMI on your home loan will be ₹12,547. Now, you can check if the EMI fits well with your monthly budget or else you can check for loans with less interest rate, increase the tenure or reduce the loan amount accordingly. You can compute the home loan EMI for various scenarios using the Angel One home loan EMI calculator.
Benefits of Angel One Home Loan EMI Calculator
The home loan EMI calculator is a smart tool that can help you in various ways while planning to buy your dream home. Here are a few benefits of using the Angel One online home loan EMI calculator:
- Plan finances: Angel One home loan EMI calculator helps you know the monthly EMI you must pay for your home loan. You can plan your monthly budget better and manage your cash flows.
- Compare home loans: Angel One home loan EMI calculator helps you compare different home loan offers from various lenders and choose the one that suits your needs and affordability. You can see how different loan amounts, interest rates, and tenures affect your EMI amount and total interest payable.
- Determine loan amount: The online home loan calculator helps you decide how much loan amount you can afford and how long you want to repay it. You can adjust the input values and see how it affects your EMI amount and total payment. You can also see the break-up of your payment into principal and interest components.
- Error-free results: Angel One home loan EMI calculator helps you avoid miscalculations or errors in computing your home loan EMI. You can get accurate and instant results with the online home loan EMI calculator without any hassle.
What Factors Affect Your Home Loan EMI?
- Interest rate: The interest rate is the most important factor affecting your EMI. A higher interest rate will result in a higher EMI, and vice versa.
- Loan amount: The loan amount is another important factor affecting your EMI. A higher loan amount will result in a higher EMI, and vice versa.
- Loan tenure: A longer loan tenure will result in lower monthly EMIs, but you will pay more interest overall.
Home Loan EMI Calculator FAQs
Are there any tax benefits on paying home loans?
Home loan comes with certain tax benefits:
- Section 80C: Home loan borrowers can get a deduction of up to ₹1.5 lakh under Section 80C every year on the principal amounts repaid.
- Section 24: Home loan borrowers can also claim up to ₹2 lakh deduction on the interest component you pay each year.