As per the recent data revealed by the Reserve Bank of India, all-India Housing Price Index (HPI) grew by 2.8% during the first quarter of 2020-21. This data indicates a decrease in real estate prices. On top of that, the banks’ MCLR is down approximately by 155 basis points. Primarily, a combination of these two factors has made homes affordable than ever. Hence, it makes an excellent opportunity for prospective homebuyers to negotiate for a lower home loan EMI and other feasible terms of service. Nevertheless, top NBFCs in India have also introduced an online home loan EMI calculator so that borrowers can get an insight into the repayment scheme and overall cost of a home loan. What is a home loan calculator? As the name suggests, a home loan calculator helps borrowers to estimate different aspects of a home loan. Starting from determining the eligibility to calculating the EMI, home loan calculators can be of any type. However, primarily it denotes home loan EMI calculator that forecast the payable EMIs, after taking loan amount, tenure, and interest rates into consideration. However, apart from home EMI calculator, other calculators are Home loan eligibility calculator Balance transfer calculatorPart prepayment calculator Stamp duty calculator Income tax calculator Debt consolidation calculator Besides, using these calculators, individuals also need to have a clear idea of how home loan EMIis calculated and its formula in detail. How is home loan EMI calculated? One of the benefits of calculating EMI before taking a home loan is that individuals can make their financial plans accordingly and determine the affordability of the same. However, first, they need to understand what EMIs comprise of. It primarily includes three components. Principal- It directly links to the EMI component of a loan. Higher the loan value, higher will be the EMIs and vice-versa. Tenure- It implies to the stipulated time within which one needs to repay the borrowed credit. EMIs are inversely proportional to tenure. Thereby, longer the tenure, lower the EMI and vice-versa. Interest rate- The home loan interest rate is another crucial determinant of the EMI amount. Since, it is directly proportional to EMI, lower the interest rate, more affordable will be EMIs. After availing a home loan, borrowers need to pay this Equated Monthly Instalment (EMI) containing some portions of both principal and interest amount. Therefore, it will be wiser for borrowers to compare with different lenders to make an informed decision. Selected financial institutions offer a home loan worth up to Rs.3.5crore with flexible tenure and competitive interest rates to eligible candidates. They also extend a pre-approved loan offer that simplifies the loan application process and saves a lot of time. Besides home loans, this offer is also available for other secured loans like loans against property and others. All you have to do is submit your name and contact number to check your pre-approved loan offer. What is the formula for home loan EMI calculation? Individuals can use the following formula to calculate the EMI payable. EMI of a loan / Here, P Principal or loan amount; R rate of interest per month; N number of instalments (monthly). However, now, one does not need to calculate this manually thanks to home loan instalment calculator. It offers several benefits like instant calculation and so on to make a loan servicing effortless. What are the benefits of a home loan calculator? Following are some of the benefits of a home loan calculator. Prompt calculation- Using a home loan EMI calculator, one can calculate the EMIs swiftly. All he/she has to do is enter relevant information in the specified fields to fetch the results in seconds. Error-free calculation- With an online calculator in place, there is no chance of erroneous results. Free unlimited calculations- You can use this calculator for as many times as you wish for free. It thus helps in comparing different home loan terms. Helps planning repayment – A home loan EMI calculator makes life easier as you can determine the EMI beforehand and structure the repayment accordingly. Nonetheless, along with using a home loan EMI calculator, you should also learn about the benefits of home loan foreclosure calculator. It will guide you through closing a home loan efficiently so that it reflects on your credit reports positively and improves your overall loan eligibility.