# How to Calculate Your EMI with a Mortgage Loan Calculator?

With a mortgage or secured loan, a borrower needs to pledge collateral to borrow credits from a lending source. The amount one borrows from a lender must be repaid in instalments throughout the tenor. This instalment amount, paid by way of EMIs, can be calculated using an EMI calculator. So, to calculate the EMIs of a particular mortgage-type loan, you will need a mortgage loan calculator.

More about a mortgage loan EMI calculator

Loan EMI calculators are available on the internet and mostly free to access. You can find one on the websites of most commercial lending companies and NBFCs. The tool calculates the instalment amounts of a loan based on three factors, namely:

• Loan amount
• Repayment tenor (or number of EMIs)
• Rate of interest

Here, the interest rate is the only input not decided by the borrower. For example, if you wish to avail a loan against property or mortgage loan, the lender’s loan against property interest rate will be applicable.

Through this calculator, one can demystify the misconceptions regarding a loan against property, especially those related to the cost of borrowing. Below is a list of some of the other advantages of a mortgage loan calculator.

• It helps you explore different borrowing figures; you can adjust and use different values (loan amount and tenure) to check the resulting EMIs.
• It helps you draw a comparative analysis of loan schemes extended by different lenders. You can put in the respective mortgage loan interest rates charged by various lenders to see the difference in loan cost.
• Prospective borrowers often get confused and overwhelmed by complex terms, conditions, expenses, etc., mentioned in loan documents. With a mortgage loan EMI calculator, they get a clearer picture of the same, eliminating any confusion.

One should note though that a loan EMI calculator cannot offer definite results of EMIs if a borrower has chosen a floating rate of interest on his/her loan. Floating interest rates keep changing from time to time, which is why there is no fixed EMI. Instead, the EMI varies according to the changes in interest rate. It is upon the borrower to decide whether a fixed or floating rate of interest is better for a loan against property.

How to use a mortgage loan calculator

Firstly, you must start by finding a user-friendly loan EMI calculator online. You can also find one on the portal of the company from which you plan to avail the LAP. Follow these steps to know how to use this calculator:

1. Open the calculator to find sliders and boxes of the above-mentioned inputs
2. Enter the amount you wish to borrow
3. Select a tenor according to your preference
4. Mention the rate of interest charged by a lender

After you put in these values, the loan against property calculator displays your:

• EMI
• Net interest payable
• Net payment (including interest and the principal)

With a mortgage loan calculator, you get a clear idea of your future repayment liabilities on the loan. Apart from helping you determine loan affordability, it also aids you in financially preparing for the repayment of a loan against property.

These days, many leading financial institutions provide exciting loan offers, including a range of pre-approved offers. These are valid on several types of loans, such as loan against property and home loan, and enhance your credit-available experience. Check your pre-approved offer by simply providing basic details before you apply.

Even before you begin inquiring on what is a mortgage loan and the terms and conditions under the scheme, use an EMI calculator to compute your liabilities. Having the figures in your mind will help you interact better with the lender, which is why most lenders suggest customers use a mortgage loan calculator before applying for a loan.