Trying to figure out if a 20-year or 30-year tenure makes more sense? A home loan calculator can be your best friend in making informed home loan decisions.
In this comprehensive guide, we’ll break down everything you need to know about home loan EMIs, interest rates, tenure, and loan amount.
Found the Right EMI? Get the Perfect Home Loan with Us!
How to Use Credit Dharma’s Home Loan Calculator?
The Home Loan Calculator makes it easy to explore different home loan scenarios with just a few clicks. Whether you’re curious about monthly EMI, loan tenure, loan amount, or interest rates, this tool provides quick answers to guide your financial decisions.
Step 1: Choose Your Calculation Mode
The Home Loan Calculator offers four calculation modes. Select the one that matches your goal:
- Monthly EMI: Find out your monthly EMI based on loan amount, interest rate, and tenure.
- Loan Tenure: Determine how long it will take to repay the loan given your desired EMI and interest rate.
- Loan Amount: Calculate the maximum loan you can afford based on your chosen EMI and interest rate.
- Rate of Interest (p.a.): Identify the interest rate required to meet your targeted EMI and repayment period.
Step 2: Input Your Details
Once you’ve selected a mode, use the provided sliders or input fields to enter the necessary details. Each mode requires different inputs:
A. Monthly EMI Calculation
- Loan Amount: Enter the amount you plan to borrow (e.g., ₹80,00,000).
- Rate of Interest (p.a.): Adjust the interest rate (e.g., 8.5%).
- Loan Tenure: Set the repayment period in years (e.g., 20 years).
- Result: Instantly view your calculated EMI (e.g., ₹69,425.86/month).
B. Loan Tenure Calculation
- Loan Amount: Specify the amount you wish to borrow.
- Rate of Interest (p.a.): Provide the applicable interest rate.
- Desired EMI: Input the monthly payment you can afford.
- Result: The tool estimates how many years it will take to pay off the loan.
C. Loan Amount Calculation
- Desired EMI: Enter the monthly installment you’re comfortable with.
- Rate of Interest (p.a.): Input the applicable interest rate.
- Loan Tenure: Set your preferred repayment period.
- Result: The calculator reveals the maximum loan amount you can take on.
D. Rate of Interest (p.a.) Calculation
- Loan Amount: Enter the total amount you wish to borrow.
- Desired EMI: Specify the monthly payment you can afford.
- Loan Tenure: Provide the repayment duration.
- Result: The calculator determines the interest rate required to meet these parameters.
Step 3: Experiment with Different Scenarios
Feel free to adjust the values for loan amount, interest rate, tenure, or EMI. This allows you to compare multiple scenarios, helping you understand how small changes can affect your overall cost and repayment strategy.
Real Life Scenario: Case Study
| Scenario | Inputs | Result |
|---|---|---|
| Monthly EMI | Principal: ₹1,00,00,000 Interest : 8.75% p.a. Tenure: 30 years | EMI: ₹78,670/ month |
| Loan Amount | EMI: ₹50,000 Interest Rate: 8.75% p.a. Tenure: 30 years | Principal: ₹63,55,660 |
| Rate of Interest | Principal: ₹90,00,000 EMI: ₹80,000 Tenure: 30 years | Interest Rate: 10.15% p.a. (approx.) |
| Loan Tenure | Principal: ₹90,00,000 Interest: 8.75% p.a. EMI: ₹75,000 | Tenure: 24 years (approx.) |
What is a Home Loan Calculator?
A 360-degree home loan calculator is an interactive tool that helps you determine a single variable at a time—monthly EMI, loan tenure, loan amount, or rate of interest. You simply choose the parameter you want to find, then adjust the other values accordingly.
Benefits of the Home Loan Calculator
| Benefit | Description |
|---|---|
| Time-Saving | Enter details once and get immediate results. |
| Holistic View | View EMI, interest, tenure, and loan amount in one place. |
| Informed Decisions | Quickly compare scenarios to find the best fit. |
| Greater Focus | Reduce confusion by eliminating multiple calculators. |
| Easy Customization | Adjust variables instantly without switching tools. |
Tips for Choosing the Right Loan Parameters
- Set an Affordable EMI: Consider your monthly income and expenses. Choose an EMI that you can comfortably afford.
- Select a Suitable Tenure: A longer tenure lowers monthly EMIs but increases total interest. A shorter tenure raises EMIs but reduces total interest.
- Evaluate Interest Rates: For potentially lower future costs, choose a floating rate. For stability, choose a fixed rate.
Conclusion
By centralizing all key variables—EMI, interest rate, tenure, and loan amount—into one convenient tool, you save time, gain clarity, and make more informed decisions.
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
The EMI depends on the interest rate. As an example, if the interest rate is around 8.5% p.a., the EMI for a ₹70 lakh loan over 20 years would be approximately ₹60,748 per month.
The EMI varies with the interest rate and tenure chosen. For instance, at 8.5% p.a. over 30 years, the EMI might be around ₹30,757 per month.
Yes, most banks and housing finance companies offer home loans with tenures ranging from 5 to 30 years, including a 10-year option.
A 15-year loan strikes a balance between manageable EMIs and lower overall interest costs compared to longer-term loans. Whether it’s a good choice depends on your financial situation and long-term goals. It typically saves more on interest than longer tenures while keeping monthly payments more affordable than very short tenures.
Union Bank of India, Bank of India, and Bank of Maharashtra offer the lowest interest rates in the home loan market, starting from 8.35% p.a.
HDFC Home Loan
SBI Home Loan
