Table of Content
For this, select cell J11 and insert the addition formula into that cell. Subsequently, select the first month of principal remaining. At this moment, we will calculate the monthly principal with the help of a simple subtraction method. So, we put the previous cell in for the first month but with the absolute reference. In the first place, we will create columns for Months, EMI, Principal, Interest, Principal Remaining, and Prepayments. The Principal Amount and Interest Amount are the two basic components of the EMI.
If you make additional payments, you'd expect the loan to paid sooner. The spreadsheet assumes that the extra mortgage payments are made every month. Optional extra payment - if you want to add an extra amount to each monthly payment then add that amount here & your loan will amortize quicker. If you add an extra payment the calculator will show how many payments you saved off the original loan term and how many years that saved. Before that, we all should know what EMI actually is.
# Principal and Interest paid after a specified period
A home loan tenure is referred to as a home loan payback term. This is the amount of time that we have to return our total home loan, including interest. It is a governmental organization for payment institutions and a global public service bank with its headquarters in Mumbai, Maharashtra.
You also have to check that the total of the EMIs should not be more than 40% of your net monthly income. The majority of lenders in India like Grihashakti offer prepayment facilities to their home loan customers. Right click on any of the above images to save a copy of our Excel loan calculator spreadsheet, or click on them to directly open it. Each month, your payment consists of both interest and principal.
Home Loan - Fees and charges
Also, we made a Prepayment of $5,000 while taking the loan. Prepayment refers to the early repayment of a loan. It is an instalment payment before its due date and is usually a lump sum amount. The minimum sum required to initiate the prepayment of your home loan with Bajaj Finserv is the equivalent of three of your EMIs.
You can figure out how much you need to pay extra to close the loan at the early date. Finally, no matter what the interest rate cycle is, I always believe that LIABILITY is always a LIABILITY. However, I love to live a debt-free life rather than work for someone else. This is with respect to the economy or slowdown in your profession.
Home Loan Calculator with Prepayment
I have created a free download excel sheet for a home loan EMI calculator with certain unique features. I tried my best to include the major features of the home loan EMI calculator. A home loan is probably the biggest loan you will ever take in your life. At least for the vast majority of people who aren’t into business requiring business loans. So you should understand how to calculate EMI on home loan correctly even if you have to use a loan EMI calculator in excel or otherwise.
The SUMIF function determines if a condition is true or false before adding the values in a range. When the result is larger than 0, this formula will provide results. Now, we have all the information to calculate the principal remaining. In the beginning, select cell C7 and put the formula to calculate EMI. Finally, select cell D6 and type the formula below.
Analyzing an Existing Mortgage
It includes repayment of the principal amount and payment of the interest on the outstanding amount of your home loan. You can download the Home Loan EMI Calculator with the prepayment option and use the template for your work. Without making any kind of prepayment, our loan status would like the image below. When you prepay a part of your home loan, you have two options.
If you are taking out another loan from another HFC or bank to make the prepayment. Along with the fixed repayment options like monthly and yearly, you have the option to enter irregular repayments. Here, you can check after specified years what the total interest paid, balance paid, and the outstanding principal balance is. It is a monthly installment that a borrower has to pay to the lender. Your EMI depends upon the principal amount of the loan, tenure and the interest rate offered to you. This is the final template of the SBI home loan EMI calculator in an Excel sheet with a prepayment option and a chart for visualizing the data.
It will remain the same throughout the loan tenure (unless there is a change in the interest rate or you wish to reduce/extend the loan tenure). The priority of any EMI is to first clear the outstanding interest for the loan principal. The remaining part is utilized towards the prepayment of the principal. This article shows you how to create a home loan calculator with a prepayment option in an Excel sheet. Using a home loan Excel calculator, you can easily calculate the EMI, monthly interest, remaining principal amount, etc. Here, we will take you through an easy and convenient method on how to create a home loan calculator with a prepayment option in an Excel sheet.
In this formula, r stands for the rate of interest. The calculator updates results automatically when you change any input. This will serve as proof that property is now debt-free and it belongs to you entirely.
The initial principal amount is lower, but it rises over time. Additionally, the interest charge is large initially before declining over time. This is why we want to make an effort to pay in advance throughout the first few months. In this step, we’ll calculate the monthly Interest that we have to pay in our EMI. Finally, you can easily download the Excel-based spreadsheet and enjoy the benefits.
One cannot afford to buy dream house without taking a home loan. Every month it takes out more money from your pocket. To understand this in detail, you need to prepare your EMI table which is also known as amortization table or Home Loan EMI Calculator. A home loan is an amount of money borrowed to buy a house from a bank or financial organization. Home loans include a fix or a variable interest rate as well as payment periods.
Step 5: Evaluate the Total Amount to be Paid of Home Loan Calculator with Prepayment Option in Excel Sheet
If the home loan has been availed of by an individual on a fixed interest rate. Assumes that you will continue to pay the same EMI as per the original schedule after making the part pre-payment. Does not take into account any penalty charges / bounce charges / late payment fees, etc. You are forwarded to payment gateway, select your payment option, you can also easily scan the bar code and make the payment. Down Payment, aka Margin, is the total money you paid to the seller or builder from your own pocket, entered either in Rupees or as a percentage of Home Value.
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