How to Find Out Home Loan EMI Using EMI Calculator?

Taking a home loan is an important financial decision that can affect the future of you and your family. Therefore, it is important that you understand and plan your home loan monthly installment (EMI) correctly. The EMI calculator provided by Investormart helps to make this process easy and clear. In this article, we will learn in detail how to use Investormart's EMI calculator and why it is considered necessary.

What is EMI?

EMI (Equated Monthly Installment) is a fixed amount that the loan taker has to pay every month. It includes both the principal amount and interest. The calculation of EMI depends on three main factors:

Loan amount: This is the amount you take as a loan.

Interest rate: This is the rate at which interest is charged on the loan.

Loan tenure: This is the time period for which the loan is taken.

What is EMI calculator?

EMI calculator is an online tool that calculates your monthly EMI by taking into account the loan amount, interest rate, and loan tenure. This tool gives you accurate results in a matter of seconds, allowing you to make better decisions about your loan.

How to use Investormart EMI calculator?

Investormart EMI calculator is very simple and straightforward to use. You can easily calculate your EMI by following the steps given below:

Visit Investormart website: First, visit the official website of Investormart. You can find it by typing in your web browser.

Find EMI calculator section: Find the “Home Loan EMI Calculator” section on the website. It will usually be found under ‘Loan Tools’ or ‘Calculators’.

Enter loan amount: Enter the loan amount you wish to avail in the field provided on the calculator. This amount can be in lakhs, such as ₹20,00,000.

Enter interest rate: Next, enter the interest rate that the bank or financial institution charges you. It is expressed in percentage, such as 8.5% per annum.

Enter loan tenure: Enter the loan tenure (in years). It is usually between 5 and 30 years.

Click on the 'Calculate' button: After entering all the required information, click on the 'Calculate' button.

View results: The calculator will instantly show you your monthly EMI amount. It will also tell you the total interest amount and the total amount to be paid.

Benefits of Investormart EMI Calculator

Time saving: This calculator gives you quick and accurate results, saving you time.

Simple and easy to use: The calculator is extremely easy to use. You only need to enter three details.

Help in planning: With the advance information about EMI, you can plan your finances better.

Free service: This tool of Investormart is completely free and can be used at any time.

Future Planning: This tool helps you to plan your future finances, such as savings plan, investment plan, etc.

EMI Calculation Formula

EMI is calculated using a certain mathematical formula:

EMI=P×r×(1+r)n(1+r)n−1\text{EMI} = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1}EMI=(1+r)n−1P×r×(1+r)n Where,

• P = Loan Amount (Principal)

• r = Monthly Interest Rate (Annual Interest Rate/12/100)

• n = Loan Tenure (in months)

Example

Suppose you have taken a loan of ₹20,00,000, at an interest rate of 8.5%, and the loan tenure is 20 years. In this case, the EMI calculation will be as follows:

1. Loan amount (P): ₹20,00,000

2. Interest rate (r): 8.5% per annum, monthly rate = 8.5/12/100 = 0.007083

3. Loan tenure (n): 20 years = 20 x 12 = 240 months

Now calculate by plugging the values ​​in the formula: EMI=2000000×0.007083×(1+0.007083)240(1+0.007083)240−1\text{EMI} = \frac{2000000 \times 0.007083 \times (1 + 0.007083)^{240}}{(1 + 0.007083)^{240} - 1}EMI=(1+0.007083)240−12000000×0.007083×(1+0.007083)240

This will give you your monthly EMI amount.

Why use Investormart EMI Calculator?

Investormart EMI Calculator is different and better than other calculators in a few ways. Here are some of the main reasons:

1. Accuracy and reliability: Investormart EMI Calculator gives accurate and reliable results. It uses advanced algorithms that ensure accurate calculations.

2. Easy to use: Its user interface is very simple and intuitive, making it easy for anyone to use.

3. Flexible input options: You can easily adjust the loan amount, interest rate and loan term and see how changes in these factors affect your EMI.

4. Detailed information: This calculator not only calculates the monthly EMI but also shows the total interest amount and the total amount to be paid.

5. Mobile friendly: This tool by Investormart is mobile friendly, so you can use it on your smartphone as well.

Things to keep in mind while using the EMI calculator

1. Enter accurate information: Always enter correct and accurate information so that the calculator can give accurate results.

2. Compare different interest rates: Compare the interest rates offered by different banks and financial institutions to choose the best option.

3. Consider the loan tenure: Choose the loan tenure carefully. Longer-term loans have lower EMIs but higher total interest.

4. Consider prepayments and advance payments: If you have extra funds, you can prepay the loan. This will reduce your loan tenure and also reduce the total interest amount.

Other uses of EMI calculator

Investormart's EMI calculator can be used not only for home loans but also for other types of loans, such as:

1. Personal loan: You can use this tool to calculate EMI for personal loan.

2. Car loan: You can also use this calculator to calculate EMI for car loan.

3. Education loan: This tool is also helpful in calculating EMI for education loan.

Important tips while planning EMI

1. Make a budget: Plan EMI keeping in mind your monthly budget. Make sure your monthly income is sufficient to pay the EMI.

2. Keep an emergency fund: Always keep an emergency fund that can help you in unforeseen situations.

3. Keep track of all expenses: Keep a record of your monthly income and expenses so that you know how much you can save and how much you can invest in EMI.

4. Consult a financial advisor: If you are confused about any financial decision, consult a financial advisor. They can guide you in a better way.

Investormart EMI Calculator and Your Financial Planning

Investormart EMI calculator not only helps you calculate your EMI, but it also helps you create a holistic financial plan. Using it, you can reap the following benefits:

1. Better Financial Planning: Accurate EMI calculation helps you understand and plan your financial goals better.

2. Loan Tenure and Interest Rate Comparison: By comparing the tenure and interest rates of different loans, you can choose the most suitable loan plan.

3. Plan for Prepayments and Extra Payments: The calculator can help you plan for prepayments and extra payments, which will reduce your total interest and shorten the loan tenure.

Example and Analysis

We will understand here through an example how Investormart EMI calculator works and how it can be analyzed.

Example

Suppose you have taken a home loan of ₹25,00,000, at an annual interest rate of 7.5%, and the loan tenure is 15 years.

1. Loan amount (P): ₹25,00,000

2. Interest rate (r): 7.5% per annum, monthly rate = 7.5/12/100 = 0.00625

3. Loan tenure (n): 15 years = 15 x 12 = 180 months

Now calculate by putting the values ​​in the formula: EMI=2500000×0.00625×(1+0.00625)180(1+0.00625)180−1\text{EMI} = \frac{2500000 \times 0.00625 \times (1 + 0.00625)^{180}}{(1 + 0.00625)^{180} - 1}EMI=(1+0.00625)180−12500000×0.00625×(1+0.00625)180

This will give you your monthly EMI amount.

Analysis

The calculator will help you find out the following:

1. Monthly EMI: What your monthly installment amount will be.

2. Total interest: Total interest amount over the loan tenure.

3. Total payment: Total amount to be paid over the loan tenure (principal + interest).

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Conclusion

Investormart’s EMI calculator is a useful tool that is very beneficial for anyone taking a home loan. It not only simplifies EMI calculations but also helps in financial planning. By incorporating it into your financial decision-making process, you can make better and informed decisions.

If you have any questions or need more information, you can contact Investormart’s customer support team by visiting their website. Using this tool, you can make your home loan planning more organized and effective.