InvestorQ : How can I calculate my home loan?
Deepali Khupte made post

How can I calculate my home loan?

Rohit Lad answered.
2 years ago

Home Loan is the loan taken from any financial Institution for buying a home. Owning a home is a desire, hence, the home loan is one of the biggest and most sought out loans in the present scenario. Since the value of the property goes on increasing, so owning a home is a very good idea both from an owner view as well as from an investors view. To fulfill the same in an easy way you have Home loan option available with banks.

Home loan, usually taken is a big amount, for a longer period of time, upon which certain percentage of interest is levied. So a well planned EMI calculator is an important tool which will ease all your doubts within seconds.

It consists of a box, with 3 sliders, mainly Loan Amount, Loan Tenure, and Interest Rate. It is as simple as that, once you fill in the details you will be given how much EMI (Equal Monthly Installment), you need to give to the bank every month, in order to repay the loan to the Bank.

You can calculate your EMI Amount with the help of the mathematical formula:

EMI Amount = [P x R x (1 R)^N]/[(1 R)^N-1], where, P, R, and N is the variable, which means the EMI value will change every time you change any of the 3 variables.

p>Let’s discuss these 3 variables in detail.

P, Stands for the ‘Principal Amount’. The principal amount is the original loan amount given to you by the bank, on which the interest will be calculated.

R stands for the rate of interest set by the bank.

N means the number of years for which the loan has been taken. Since EMIs are paid every month, the duration is calculated in the number of months.