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It is a dream of everyone to have a home of their choice. One who doesn’t have his own home, dreams of buying one and one who has his own home still dreams of moving to a larger house.
One who has more than one home in a city dreams of having a home in another city. Then people dream of country houses, duplexes, penthouses, and villas, the list continues.
This has increased the demand for real estate. However, the charges of real estates in India are higher, it becomes challenging for a common man to own a home without any external financial help. That’s when the home loan comes into action. Home loans serve as a boon to those who really want to buy or build a new home.
It is also important to know how much EMI you can afford while repaying the loan without affecting your balances. With the help of a proper Home Loan EMI Calculator, you can effectively manage your finances and avoid possible dangers.
This is a step-by-step guide to calculate your home loan EMI.
What Is EMI?
EMI or equated monthly installment is a fixed amount that you need to pay the investor every month as a repayment if your home loan. The EMI consists of two main parts namely the principal loan amount and interest. The size of the EMI varies depending upon your chosen repayment tenure.
With the help of an Home Loan EMI Calculator provided by PNB Housing, you can easily analyze the various home loan EMIs for different variables of a loan amount and tenures. It is important to maintain a balance between your monthly expenses and the interest rate. By fixing your tenure, you can select an EMI that suits your financial status, repayment abilities, and future goals.
How To Calculate Your Home Loan EMI?
There are three ways by which you can calculate your Home Loan EMI.
- By using a simple mathematical formula in which you can calculate your EMI by putting the numbers in the formula
- You can calculate your home loan EMI by using an excel sheet.
- You can also use online EMI Calculators to calculate your home loan EMI.
Step 1: By Using The Mathematical Formula
The mathematical formula for calculating a home loan EMI
EMI = P x R x [{(1 + R)^N} / {1 – (1+R)^N}]
Where P is the principal loan, R is your monthly interest rate [(annual rate/12)/100], and N is the total number of months during the loan tenure.
Step 2: By Using An Excel Sheet
With the Excel sheet home loan EMI calculator you can calculate the present value of payments (PMT).
- Firstly, collect all required data such as the principal amount, home loan interest rate, and tenure.
- Now, open an Excel sheet and enter the formula
EMI = PMT(rate/12, tenure in months, principal amount).
= PMT (R, NPER, PV)
In this R is the rate of interest, NPER is the number of months for which the money has to be paid, and PV is the present value of the loan or the principal amount. After placing the formula, press “Enter” to get the monthly EMI value.
Step 3: By Using Online EMI Calculators
Many banks and financial institutions like PNB Housing, now provide online home loan EMI calculators to make the EMI calculation more precise and convenient. You just need to input the credentials like the loan amount, interest rate, and tenure. By this, you can get a precise breakout of the loan.
Conclusion
When considering your home loan, consider using an EMI calculator is the best choice. It allows you to plan your EMIs effectively. You can also manage your expenses, get clear information about your loan repayment possibilities, You can compare the best deal and get the best Home Loan EMI providers like PNB Housing.
Enjoy the Benefits Of EMI with the PNB Housing EMI Calculator.
