Don’t feel confident when it comes to crunching numbers? Here’s how an EMI Calculator can come to your rescue.
An EMI Calculator is an online tool that allows you to calculate your monthly installments for loan you take. You need to enter the amount you wish to borrow, loan tenure, rate of interest, and then processing fee rate.
The basic formula that is used to calculate
EMI is : E = P x r x (1+r)^n/((1+r)^n – 1)
In this formula,
• E stands for the equated monthly instalment or EMI.
• P is the sum that you wish to borrow
• R is the rate of interest on a monthly basis
• N is the tenure of the loan
It’s a fact that some among us are good with numbers, but it’s equally true that many get nightmares whenever it comes to making calculations. If things like tenures and interest rates confuse you, then you have landed on the right place. Let’s see how the Bankbazaar EMI calculator works.
Here’s the link to the calculator –
Suppose you’re planning to buy a house, and your home loan amount is Rs. 50 lakh and the loan tenure is 15 years. Assume your lender is charging a fixed interest rate of 10% p.a. throughout the loan tenure apart from a processing fee of 0.5% on the disbursed amount.
If you run the numbers on the calculator, you’ll realize that your EMIs will cost Rs.53,730 every month for 15 years.
If you simply increase your loan tenure to 30 years and hit the calculate button, you’ll see now your EMI comes down to Rs. 43,879.
Please note : All the figures that have been used here are stated as example and they are for reference purposes only.
Bankbazaar not only allows you to calculate your loan installments easily, but also offers a wide range of options to choose from. Ensure that you look at all the Home Loan products available on Bankbazaar and compare them before you apply for one.