Home Loan EMI Calculator & Calculation Method
This Home Loan EMI Calculator Online helps you to calculate EMI( Equated yearly Installment) on your Home Loan, along with total interest quantum you’ll pay throughout the loan term.
Keep in mind that advanced the loan term, further interest you’ll pay while repaying your home loan.
WHAT IS HOME LOAN EMI CALCULATOR
Home Loan EMI Calculator Online helps you to calculate home loan EMI( Equated Monthly Installment). This computation helps you in planning for loan to buy or construct new house so that you get the idea of yearly loan EMI you’ll be paying.
HOME LOAN EMI CALCULATION METHOD
- I have already explained about home loan EMI calculation here
- Home loan EMI can be easily calculated in excel using PMT function
- PMT function takes 3 parameters: Interest Rate, Remaining months and Principal value remaining
- Interest rate provided should be the monthly home loan interest rate divided by 100
- Remaining months is the number of months remaining for which EMIs are yet to be paid
- Principal value is the outstanding principal amount remaining in your loan account
- Remember, your EMI consists of 2 things: Principal Amount and Interest Amount
- Interest Amount is high initially, and decreases with time
- Principal Amount is low initially, and increases with time
FACTORS AFFECTING LOAN EMI
- 2 factors affect Loan EMI – Interest Rate and Tenure
- Higher the interest rate, more interest amount you will be paying
- Longer the tenure, more interest amount you will be paying
- To save the most money on interest, aim to take out loans with low interest rates and short terms.
- Book a call to know more about loan EMI calculations and saving of loan interest