Use the “5, 20, 40” rule to buy a house with ease:

• The value of the house shouldn’t be more than five times your annual income.

• The loan tenure period should be 20 years or less.

• Your monthly EMI amount should not exceed 40% of the monthly income.

A home loan calculator is a financial tool that calculates the amount of the EMI for a home loan. You can calculate the EMI amount by just entering the following inputs in the calculator:

• Loan amount

• Interest rate

• Loan tenure

All the three inputs have significance and affect the EMI amount differently.

1. Principal Amount (P): 

   The principal is the amount provided by the financial institution to the individual to facilitate the purchase of the house. The loan amount is generally 80-90% of the value of the purchased House. Until the full repayment of the principal amount with the interest is made, the financial institution has full ownership rights over the property.

2. Interest Rate (R): 

   The interest rate is the cost of borrowing money or the reward for bearing the risk by the lender. Banks often offer competitive interest rates on home loans, with special concessions for female home buyers.

3. Loan Tenure (N): 

   The loan tenure is the period between the loan amount's disbursement and the closing of the loan or complete repayment of the principal amount along with the interest. The longer the tenure period, the smaller the monthly EMI, or vice versa. There is an inverse relationship between the loan tenure period and the EMI amount.

• Simplification: 

  Calculating home loan EMIs with a regular calculator can be complex, especially for those less comfortable with numbers. Online home loan EMI calculators simplify this process.

• EMI Estimate: 

  Home loan EMI calculators provide an estimate of your monthly EMI. They offer a rough estimate of what to expect when borrowing a certain amount.

• Cost Efficiency: 

  Our Home loan calculator is free to use, saving you fees paid to financial advisers. The calculator requires only a few numerical inputs to estimate your dream house's monthly instalments.

• Time Efficiency: 

  Calculating EMI amount using a traditional calculator is a time-consuming process, especially for those unfamiliar with mathematical terms. Home loan calculators can save a significant amount of your time.

• Comparison: 

  These calculators can help you compare the loans offered by different banks, aiding better decision-making. Since the EMI depends on the loan amount, tenure, and interest rate, it can vary between institutions.

The home loan EMI calculator works on a mathematical formula that considers the following components:

E= (P*R*(1+R)^N)/(( 1+R)^(N-1))