Things You Should Know About a Borrowing Calculator

Things You Should Know About a Borrowing Calculator

Your EMI is calculated instantaneously using a home loan calculator based on the amount of money you want to borrow, the interest rate, and the length of time you want to borrow it. After evaluating your repayment ability, the online Borrowing Calculator also provides total interest charges, total principal payable, and a repayment timeline to assist you in understanding and managing your housing loan payback.

The Advantages of Using a Calculator

You may calculate your monthly installments with a house loan EMI calculator before applying for a mortgage, which can help you decide:

  • What is the maximum amount you may borrow on a house loan?
  • Choosing between a long-term and a short-term house loan
  • The amount to put down on the house as a down payment
  • How to organize your budget so that you can make timely loan payments?
  • EMI calculators help you prepare for your home loan by projecting the possible EMI you’ll have to pay even before your loan is approved.
  • Manual calculations and mistakes are no longer necessary with the EMI calculator.
  • It allows you to customize the loan amount and term by inputting various combinations and permutations of the loan balance and term to come at a reasonable EMI.
  • Knowing the EMI ahead of time assists you in organizing your money and managing your budget so that you can cover the EMI without jeopardizing other essential costs.

How to Use an EMI Calculator?

Using a Housing Loan Calculator is quick and straightforward, allowing you to compute the EMI amount in seconds. However, before you utilize it, you should approximate the principal loan value you require and the EMI you can afford, depending on your regular income and costs.

The EMI calculator calculates the EMI amount using the equation: 

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


  • The letter P denotes the primary loan amount.
  • The monthly rate of interest is R.
  • N is the total number of monthly installments.

Note: To calculate a monthly interest rate, divide the yearly interest rate by 12 and multiply by 100. A house loan EMI calculator makes the computation easier.

Enter the loan’s principal amount, a fair rate of interest, and the loan’s duration. The EMI amount will be calculated promptly using the online tool. With the quick calculator, you may determine your housing loan EMI in three easy steps:

  • Loan Amount: Enter the loan amount you’d want to take out.
  • Input the appropriate loan duration (in years) for which you intend to obtain a house loan.
  • Longer tenure improves eligibility. 
  • Interest Rate (percent per annum): Enter the interest rate.

How Can You Lower Your Home Loan EMI?

Consider the following methods if you’re looking for strategies to reduce your house loan EMI payments:

Whenever Feasible, Make Partial Prepayments:

When you complete a partial advance payment, you are paying a portion of the amount owed early, giving you the choice of lowering your EMI or extending your loan term. Only choose a smaller EMI if you intend to pay off your loan. A house loan usually includes a one-year lock-in period. After that, you can pay back the loan or in part.

Balance Transfer:

You can transfer your outstanding loan balance to lenders who offer cheaper interest rates, longer terms, or both. Before transferring your home loan amount, do a cost estimation to ensure that the interest savings surpass the transfer charges. Also, utilize an online house loan calculator to see how your EMIs would decrease if your home loan rate is reduced.


A Borrowing Calculator is also a valuable tool for financial planning. It helps you maintain a consistent cash flow in the system after accounting for all high costs, such as a loan EMI.

Clare Louise