How to Use Property Loan EMI Calculator?
Using our Property Loan EMI Calculator, you can calculate how much monthly and total expenditure you really incur by purchasing a Property using your bank Property loan.
Property Loan Details includes single premium loan insurance and processing fees.
- Property Value is the actual price of the Property you purchased (i.e., sale deed value).
- 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 Property Value.
- Loan Insurance is the single premium amount, for the Property Loan Protection Plan (HLPP) OR Term Insurance Plan, that gets included in your Property loan amount. If you want to guesstimate this amount, use the LIC premium calculator to calculate yearly premium for eTerm plan using your age, loan term and loan amount for Sum Assured. You then multiply this number by your loan tenure.
- Loan Amount is calculated as Property Value + Loan Insurance — Down Payment.
- Interest Rate is…the 10th wonder of the world! When its compounded, it ranks 8th.
- Loan Fees & Charges includes Processing Fees, Administrative Charges etc. along with service taxes, entered either in Rupees or as a percentage of Loan Amount.
Propertyowner Expenses can be entered either in Rupees or as a percentage of Property Value. You will not pay property taxes and Property insurance premium each month, but it is included in the total monthly payment with the assumption that you are setting aside this amount (either through Recurring Deposit or some other means) every month. This will ensure that you will have the necessary money to make the payment once or twice a year. Please note that the recurring expenses will change over the lifetime of the Property loan due to inflation and other factors. They will also continue beyond the Property loan tenure. You should consider all these factors, especially when making a Rent vs. Buy decision.
- One-time Expenses can include Registration Fees, Stamp Duty, bribe you paid to that pan chewing Govt Babu, money you spent on sprucing up your new Property and performing a lavish house warming ceremony (after all, this is a great occasion for your spouse to show off in front of his/her friends & relatives).
- Property Taxes is the annual payment that you grudgingly make to your local municipal body.
- Property Insurance is the yearly premium you pay to insure your home—if it isn’t already covered by loan insurance plan.
- Monthly Maintenance Expenses is what you pay to keep your apartment shining, clean and ‘water-full’. If its an independent house, you can assume your annual maintenance expenditure to be about one percent of your Property value. Divide this number by 12 to arrive at monthly maintenance amount.