Different Methods to Calculate Your Home Loan EMI Efficiently

Different methods of calculating monthly home loan EMI offer different inputs. For instance, home loan EMI calculator, most common method, can be used to run several home loan EMI calculations. But, it can be used to determine your affordability as well. So, let’s explore numerous methods of calculating monthly home loan EMI.

Home loan EMI calculator:

This is a simple online tool. It is used to identify principal amount and interest rate that you can afford based on working years and income. You can use it identify EMI you can afford on a monthly basis. This EMI calculator offers several other insights. Some of the home loan EMI calculators in India can calculate EMI according to repayment options. You can see an amortization table to explore the flow of principal amount and interest throughout the home loan tenure too. So, this simple tool is more than a calculator. But, as always, home loan EMI calculator can be used to make approximate calculations only. For the exact details, you will need to contact your relationship officer or wait for a home loan offer.

Excel sheet:

Several online resources are available for people considering a home loan. Quite a few of them offer the formulae for undertaking home loan calculations. These simple and advanced formulae can be used to calculate home loan EMI. Excel sheets are equipped to execute these calculations easily and effectively. These details may not be available in several home loan EMI calculators in India. So, make the most of it with right formulae.

Manual calculations:

It is the toughest option available. But, you can use it if you deem it useful. But, it is hardly a recommended one since it will take the most time in executing the numbers manually.

So, most housing loan borrowers utilize a combination of these methods to run home loan calculations. The only common factor among all is the undertaking different home loan calculations. You may or may not consider different repayment options. But you must consider their impact on your housing loan EMI and your monthly cash flow. You must take an amortization table into account while considering different repayment options. Will you consider floating or fixed home loan rates? Most common choice in India is floating interest rate since it is the most economical one. But, do not select the home loan rate without considering its impact on your monthly home loan EMI. So, use these methods to your advantage to understand the different versions of reality possible. All the best!