# Housing Loan Calculator

Buying a home is a very crucial decision both financially and personally, taking a home loan requires a thorough planning and research especially because of the loan's long tenure and high loan principal amount. The Housing Loan Calculator has been designed, keeping in view the user-friendly requirements of an applicant seeking for home loans. It helps the individuals to calculate their home loan EMIs instantly. However, housing loans are sanctioned on the basis of the property cost and the borrower's repayment capacity. There are long tenure housing loans also available, which has the repayment period of upto 30 years. Based upon the personal requirements and eligibility criteria of an applicant concerned-loan amount, tenure and interest rates are vital constituents to be concerned while calculating the home loan EMI.

Now let's understand what EMI is all about ? EMI, stands for Equated Monthly Installments which the borrower makes every month towards repayment of home loans. EMIs constitute the principal amount along with the accrued interest. EMIs are beneficial to the borrower as the amount lent is paid back in parts and which reduces the financial burden on the borrower.

## Housing Loan Eligibility Calculator

Housing Loan Eligibility Calculator allows the borrower to understand about the different combinations that can be availed for repayment of home loans. Moreover, an analysis can also be made which one will suit the borrower's need as per their own repayment capacity. The borrower has to fill the below details for knowing about his/her eligibility :

• Net monthly income
• Existing EMI
• Rate of Interest
• Loan Tenure

As the general rule , higher the capability of the borrower to pay back the loan, higher would be the amount that would define the borrower's eligibility. However, the loan amount will be higher for bigger tenures and have lower interest rates.

## Housing Loan EMI Calculator

Want to know how much EMI one has to pay towards their home loan? The housing loan calculator is a tool used to calculate the EMIs which are to be paid towards a home loan.For the detailed information on the monthly installments, the total interest outgo and the total amount (principal + total interest), an applicant has to fill in these details in the EMI calculator:

• Loan Amount (in ₹ Lakh)
• Number of Months
• Interest Rate (in %)

The calculated EMI value will be shown as a result to be payable towards home loan.

Now, let us take an example to understand about the calculation of housing loan. Assume that an applicant looking for a housing loan has the below requirements available :

Loan Amount- ₹ 75,00,000/- Tenure- 30 years

The interest rates offered by top major banks and housing finance institutions can provide him/her several alternatives to choose from. Let's take a look on how different interest rates can have an impact on EMI & total interest which is likely to be paid by him/her.

On the basis of this data, the monthly installments that the borrower will have to pay is:

Table for EMI per month, Total Interest Outgo and Total Amount

Banks Loan Amount (in ₹) Interest Rate (% p.a.) EMI (in ₹) Total Interest Outgo (in ₹) Total Amount (EMI+Interest) (in ₹)
SBI 75,00,000 8.60% (for women)-8.70% (for others) 58,201-58,735 1,36,44,565-1,34,52,316 2,09,52,316-2,11,44,565
ICICI Bank 75,00,000 8.65% 58,468 1,35,48,367 2,10,48,367
HDFC 75,00,000 9.15% (for women) - 9.30% (for others) 61,158-61,973 1,45,16,851-1,48,10,134 2,20,16,851-2,23,10,134
Axis Bank 75,00,000 9.15%-9.35% 61,158-62,245 1,45,16,851-1,49,08,166 2,20,16,851-2,24,08,166
Punjab National Bank 75,00,000 8.45%-8.95% 57,403-60,077 1,31,65,064-1,41,27,745 2,06,65,064-2,16,27,745
LIC Housing 75,00,000 9.15% (For Govt Emp)-9.15% - 9.60% (For Others) 61,158-63,612 1,45,16,851-1,54,00,319 2,20,16,851-2,29,00,319
Indiabulls Housing Finance Ltd 75,00,000 9.10%-9.15% 60,887-61,158 1,44,19,365-1,45,16,851 2,19,19,365-2,20,16,851
TATA Capital Housing Finance 75,00,000 9.10%-9.15% 60,887-61,158 1,44,19,365-1,45,16,851 2,19,19,365-2,20,16,851
Shubham Housing Development Finance Company 75,00,000 12%-14% (For Salaried)-15%-17% (for Self-employed) 77,146-88,865 (for salaried)
94,833-1,06,926 (for self-employed)
2,02,72,540-2,44,91,537for salaried)
2,66,39,989-3,09,93,234(for self-employed)
2,77,72,540-3,19,91,537 (for salaried)
3,41,39,989-3,84,93,234 (for self-employed)
PNB Housing Finance 75,00,000 9.30%-9.75% 61,973-64,437 1,48,10,134-1,56,97,169 2,23,10,134-2,31,97,169

### Housing Loan EMI Calculator Formula

The calculation in the EMI calculator is done through the below-given formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

where,
EMI= Equated Monthly Installment
P= Principal Loan Amount
R= Monthly Interest Rate
N= Number of Monthly Installments

### Why use Housing Loan Calculator?

Housing Loan Calculator is used because of the following benefits it provide:

1. Speed : The detailed 'boring' calculations can be calculated within seconds.
2. Simplicity: Complex calculations can also be performed which is somewhat not possible due to the technical limitations of a normal calculator.
3. Experiment : Housing loan calculator can perform tests by using any interest rate, tenure combinations for availing the right home loan.
4. Free:

Since it is available on internet, this friendly tool is 100% free which is accessible anywhere at anytime.

### How Housing Loan Calculator works?

Housing Loan Calculator computes the EMI on the basis of the details entered by an applicant seeking for home loan. The EMI Calculator for housing loan works on the following criteria :

Loan Amount : The amount of money borrowed for purchasing a house is the loan amount. The borrowed amount depends upon the cost of the property and the repayment capacity of the borrower. However, a lender is entitled to give 80% of the property value as loan. This is known as the principal amount of the loan and the rate of interest applicable on it. The final amount after levying interest rate then gets divided equally throughout the tenure of the loan. Enter an amount taking into consideration that EMI or monthly installments cannot account for more than 40% of the monthly income of an applicant.

Interest Rate : This is the rate at which interest is levied on the lending amount. The rates of home loan vary from one financial institution to another, so it is best to consider the interest rates before applying for a home loan. Interest rates are of two types-fixed or floating. When fixed interest rate is levied, the interest rate remains unchanged for the entire loan tenure and all EMIs would remain the same. However, in case of floating interest rate, the rates fluctuate in response to the changes in the base rate and subsequently, EMIs will change.

Tenure : It is the time allocated or decided for the repayment of the loan. There are some of the loans which come up with flexible loan tenures. Home loans are long term loans with long-term repayment period of upto 20 years, in some cases even lasts till 30 years. An applicant needs to choose the loan tenure as per own choice, but needs to remember the longer the tenure will have to pay more interest.

The home loan EMI calculator functions on the basis of two arithmetic formulae and includes two calculators- home loan interest calculator and home loan EMI calculator. The first calculator is used to calculate the monthly interest on your home loan and works on a simple formula. As compared to the latter where the calculation involves a lengthy and complex one and is used to calculate the home loan EMI. Therefore, it is better to use a housing loan calculator for calculating the EMI for the loan.

### Benefits of Using Housing Loan Calculator

Saves much time : When it comes to performing lengthy and time-consuming calculations, housing loan calculator calculates the EMI for a home loan within seconds. Enter the details in reference to your home loan, the EMI calculator will show the home loan EMI instantly.

Provides accurate results : Calculating EMI for a home loan manually often gives wrong results. The wrong calculations can change the home loan EMIs, thereby making a wrong decision. An applicant cannot always make a correct decision upon manual calculations. However, housing loan calculator is used for delivering to get authentic results.

Helps in making better plan for finances : Housing loan calculator can be of great use as it not only helps in calculating the home loan EMIs but also helps to assess the repayment capacity of an individual. By applying maximum permutation and combinations to the key elements related to the Home Loan in the calculator, the result will show the EMI amount that an applicant is comfortable paying each month.

Offers a complete list of other home loan deals to compare : After calculating the EMI using housing loan EMI calculator, the latter shows the entire list of home loan quotes that can suit the requirement and eligibility of an applicant. These quotes are merged through the tool after thorough research of the loans available in the market. This list also consist of the distinctive characteristics of each loan, like the interest rate, tenure, loan amount, among others, in order to make an informed choice. An applicant can have the options to select the best suited loan amongst the other home loan schemes.

## Housing Loan Tax Saving Calculator

A person willing to take home loan can also look to save taxes on his/her income. Income tax deductions can also be claimed by an applicant against principal and interest payments that are made towards repayment of home loans. In the housing loan tax savings calculator, just type the following details :

• Loan Amount
• Interest Rate
• Loan Tenure
• Loan Start Date
• Gross Annual Income

The type and existing deduction under Section-80C/D of the income tax is made available against repayment of Home Loan, which is governed by the applicable Income Tax Laws of Government of India. The result derived from the calculator will help an applicant know about how much taxes have been saved as repayment towards home loan.

### Housing Loan Repayment Calculator

If an applicant is making regular monthly payments on home loan, still he/she can know about how much time is left in order to pay-off the entire borrowed loan at a given interest rate and on applicable EMI. Housing Loan Repayment Calculator can help to do so. The interest rate used in the calculator is a monthly reducing balance interest rate.

### What is Amortization ?

Amortization is the process of repayment of a home loan over a specific period of time through regular payments. The portion of the payment goes towards :

• interest costs(what the lender receives as a payment of the loan)
• and minimizing the loan balance(also known as paying off the loan principal)

At the beginning of the loan, the interest costs are at the highest. Especially with long-term home loans, the majority of each regular payment is an interest expense, and the borrower will pay-off a small portion of the home loan.

As time progresses, more and more of each payment goes towards the principal amount and the borrower is required to pay less in interest each month.

### Amortization Schedule Calculator

An applicant seeking for home loan can access the home loan repayment amortization schedule in order to know about the monthly EMI, Interest, Principal and the monthly loan amount outstanding balance on home loan. It also ascertains how much of your repayments will go towards the principal and how much will go towards interest. Just fill the details and get the results :

• Loan Amount
• Total number of EMI Payments(in Months)
• Annual Interest Rate
• Loan Start Date