Thinking of planning to purchase a home? A home is always a dream of every Indian that fulfills your status and offers you security. However, a home needs a very huge investment and maybe a good amount from your salary every month. A home loan helps you give support to your home purchase and offers you an easy purchase. Since it is a big investment, you must consider good planning to go well with it. Whenever it is about calculation, it is always a calculator. Be it your school days or your adult loan period days, you must keep a home loan EMI calculator handy to work out things well. An EMI calculator is a great help that offers you good planning and makes your purchase easy.
What is an EMI calculator?
An EMI calculator looks like a normal calculator but it is designed to meet different needs. You cannot use this calculator for your school or college purpose, but only for calculating your EMI. It helps you with an amount that you need to pay monthly as your EMI. This EMI needs to be designed in such a way so that you don’t end up investing your entire amount of salary in paying your EMI bills. A calculator will make an easy and instant calculation and help you with the exact amount so that you can compare and choose the best.
Elements of EMI calculator
An EMI calculator has few elements that it’s takes to offer you an exact EMI amount. It includes factors like:
- Principal amount: The principal amount is the loan amount that you are offered by your bank or any financial institution. It does not include any rate of interest or any hidden charges. The principal amount is exactly the amount you have asked for. You need to put your principal amount in the calculator to know your EMI amount.
- Rate of interest: You will have to give an interest in the loan amount you are borrowing. This amount can vary and is subjected to change. A slight range in the rate of interest can make changes in the EMI amount. Hence, a rate of interest is an essential factor that you can compare and input so that you get the right amount.
- Tenure: The tenure is counted in terms of months and you will have to enter the number of months you are looking up for. You can increase and decrease the number of months in the calculator to get an amount that may or may not suit you. Whatever slight changes you make in months that will reflect in your EMI amount.
Benefits of EMI calculator
Easy and instant: An EMI calculator is easy to use and offers instant calculation. If you were never good with calculation, you may end up having a mess with pen and paper. The loan includes a huge amount and calculating that can create a lot of hurdles. You can just use an EMI calculator and enter any amount and get an exact amount instantly. Keep changing your interest rate or tenure, and get comparable rates.
Zero errors: If you are calculating your EMI amount you cannot go wrong anywhere. You cannot afford to use pen and paper where a slight change in one number can cause you serious issues. Hence, go ahead and use an EMI calculator so that you get instant accurate results without any room for errors.
Plan your finance: If you know your EMI amount you can plan your finance well. The moment you know your amount monthly, you can plan your expenses accordingly from your salary. If you know what you need to pay every month you can manage your other expenses and go ahead with the right management. An exact amount offered by the EMI calculator can tell you if that is fine for you or not.
Take an informed decision: If you use an EMI calculator you can take an informed decision. You can make slight changes in the interest rate and tenure to get the variable number. Out of the entire amount that you get, you can choose the amount that suits you well and that makes your payment process easy. It is not responsible enough to go for a scheme that has high EMI and you end up not being able to pay that EMI and you lose out on your credit score.
A home loan EMI calculator can help you out in deciding the right EMI amount for yourself. Make sure your EMI amount does not be a burden to you and take away all your other expenses. Use a calculator every time you sit to calculate and go for the best amount that you can pay off easily.