# Check your Home Loan Affordability through Housing Loan Calculator

Housing loan calculator has made possible for the applicants, to calculate their home loan EMIs instantly. No matter, housing loans are sanctioned on the parameters such as the property cost and the borrower’s repayment capacity. The loan amount would only be sanctioned when the eligibility criteria of an applicant fulfill the norms of the bank/HFC’s. EMI Calculator for Home Loan:

A housing loan calculator is a tool used to calculate the EMIs which are to payable towards a home loan. In order to calculate the monthly installments, the total interest outgo and the total amount (principal + total interest), an applicant has to enter these details in the EMI calculator:

• Loan Amount (in  ₹ Lakh)
• Number of Months
• Interest Rate (in %)

The resultant value will be the EMI which is likely to be paid towards loan calculator.

Housing Loan EMI Calculator Formula:

The formula given below is applied by the EMI calculator for calculating the EMI.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

where,

EMI= Equated Monthly Installment

P= Principal Loan Amount

R= Monthly Interest Rate

N= Number of Monthly Installments

Why use Housing Loan Calculator?

Housing Loan Calculator is useful because of the following reasons:

Speed: The long ‘boring’ calculations can be calculated within seconds.

Simplicity: Difficult calculations can be also be done by using housing loan calculator, which earlier was not possible due to technical limitations of a normal calculator.

Experiment: Housing loan calculator can do other tests as well such as computation of interest rate and tenure for knowing about the right kind of home loan to apply.

Free: Since it is user-friendly & has internet accessibility anywhere at anytime. Anybody can operate this calculator which is 100% free on the internet.

How Housing Loan Calculator works?

The calculation of EMI is based on the details entered by an applicant applying for home loan. The EMI calculator works as per the below criteria:

Loan Amount: The sum borrowed for purchasing a house is known as the loan amount. The borrowed amount is dependent upon the property cost and the repayment capacity of the borrower.

However, a lender is eligible for 80% of the property value as loan.This is known as the principal amount of the loan and the rate of interest levied on it. The final amount derived after applying interest rate then gets apportioned throughout the loan tenure. Enter an amount by keeping in view, EMI or monthly installments which cannot be more than 40% of the monthly income of an applicant.

Interest Rate: This is the rate which is applied to the lending amount. The rates of home loan differ from one lender to another, so it is best to consider the interest rates before applying for home loans. There are two types of interest rates -fixed or floating. In the case of fixed interest rate, the rate of interest remains unaltered throughout the loan tenure and so will be the EMIs.

However, in the case of floating interest rate, the rates vary with respect to the changes in the base rate and consequently, EMIs will change.

Tenure: It is the time specified or predetermined as a repayment towards home loan. Some of the loans are also available with flexible loan tenures. Home loans are long terms loans which have a long repayment period of up to 20 years, in some cases even lasts till 30 years. The borrower needs to decide the tenure as per own choice but needs to remember longer the tenure, more will be the interest.