You can compute the appropriate home loan EMI with this principle:
EMI= P x r x (1+r) n/((1+r) n-1) where:
N= Number of months in the loan tenor
R = Home loan interest rate
P = Principal amount
But, calculation of the EMI manual using this formula is not only boring and awkward but also leaves plenty of scope for mistakes. This is where a home loan EMI calculator can be of great benefit.
Using a home loan calculator is quite trouble-free. You just require entering the values in given fields as given in the calculator and within a minute, you will know the amount of EMI. You need to enter the following in the calculator:
- Loan amount
- Tenor
- Rate of interest
Besides informing you about the EMIs to be paid each month you would also come to know about the total interest payable and the overall payment including interest and principal.
When you use a home loan EMI calculator, the posibilities of going incorrect with EMI computation is almost nil. This is a big benefit as you will know the correct EMI you require shelling out towards your home loan in India.
