Check your monthly EMI for Home Loan
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EMI Amount = *
Capitalneed.com Home Loan EMI calculator helps you properly plan your EMI. Planning your secured loan optimally is a prudent way to ensure that your repayment journey is comfortable. This is especially true for a mortgage loan, as you pledge your assets as collateral. The EMI calculator is the perfect tool during the planning stage, as it offers instant and accurate results every time.
How to Use EMI Calculator?
Step 1: Visit the calculator webpage.
Step 2: Enter the loan amount you require.
Step 3: Fill in the interest rate offered to you by Capitalneed.com.
Step 4: Enter the loan duration under the section ‘Tenure’.
Step 5: View the results under the section ‘EMI Amount’.
This will calculate and show your EMI quickly. Also, you have an option to click on ‘Check Repayment Schedule’ button to understand amortization schedule based on your input.
3 Components that Impact EMI Rates
Monthly instalments (EMIs) are impacted by three main factors mentioned below:
- Sanction: This is the loan amount or the approved sanction amount. It directly impacts the EMI amount; borrowing a larger sum will increase the EMI payable.
- Interest rate: This is the interest rate charged on the principal amount for the tenure. Naturally, a higher rate will result in higher EMIs, so you must try to secure the lowest mortgage loan rates.
- Tenure: This is the repayment timeline, which ranges between 3 and 15 years. If you opt for a longer period to repay your dues, your monthly payments will be smaller. However, you will be paying interest for a longer period and a higher amount. Similarly, opting for a shorter tenure increases the EMI amount, and decreases your interest payable.
The tentative amount payable is calculated based on the principal amount, the interest charged & tenure input by you.
Different Ways to Calculate Home Loan EMIs
- Manual calculation:
To calculate the loan EMI amount manually, use the following formula:
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)]
Here,
‘P’ denotes the principal amount
‘N’ denotes the tenure in months
‘R’ denotes the interest rate applicable every month
- Online calculator: The Home Loan EMI calculator is a digital tool that offers the easiest solution. All you must do is input values for the ‘Tenure’, ‘Loan Amount’, and ‘Interest Rate’. The calculator automatically computes results based on your inputs and displays them instantly.
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Microsoft Excel: For this method, use the Microsoft Excel program. Choose a cell on the sheet, select the ‘PMT’ formula, and enter the loan data into the following variables accurately:
- ‘Rate’: This is the rate of interest monthly.
- ‘NPER’: This stands for loan tenure in months.
- ‘PV’: This denotes the loan amount or principal value.
Enter the values for ‘FV’ and ‘Type’ as 0 and 1, respectively.
How to Reduce EMIs On a Home Loan?
Knowing how to reduce EMIs is a useful skill to have. Always keep your monthly instalments affordable so that your property kept as collateral is never at risk during the loan repayment term. Here are some handy tips to reduce EMIs:
- Borrow for the amount you require.
- Negotiate for a lower interest rate.
- Opt for a long tenure loan.
- Prepay the loan at least once during the tenure.
