Home Loan Calculator

Yes, you can, provided you have Python installed in your system. Here's how you do it:

1. Click the link below to download the distributable version of this program.

Download the distributable
2. Then, extract the folder "home-loan-calculator" from the zip file you just downloaded.
3. Install the required modules by executing pip install -r requirements.txt in your system command shell.
4. Then, run python main.py to run this program.

Optionally, before you install the required modules, you can open up a new virtual environment with python -m venv venv (make sure that you execute this command in the ~/home-loan-calculator directory), then activate the virtual environment by venv\scripts\activate. Only then you install the required modules by executing pip install -r requirements.txt. Then, to run the program, at the same directory, execute python main.py.

Requirements: You need to have Chrome installed as part of this app uses Chrome.

A home loan repayment refers to a housing loan in which the monthly repayments covers a portion of the capital amount loaned as well as the accrued interest. This means that your home loan balance will gradually decrease each month, and with faithful (steady) repayments, the loan would be fully paid by the end of its term.

But what is home loan exactly?

One of the most common forms of debts, housing loans are offered by a mortgage company, bank or other financial institutions for the purpose of acquiring a property.

Under a home loan, the title of the property is transferred by the owner (borrower) to the lender (banks or financial institutions) as collateral (guarantee). It would be transferred back to the owner once the housing loan is fully paid and all other terms are met.

This gives more people the chance to own a home as the entire payment of the house does not need to be provided up front. With a tenure of 10 to 30 years, home loans have two main types – fixed rate and adjustable rate. In a fixed rate home loan, a borrower pays the same interest rate throughout the duration of the loan. In an adjustable rate home loan, the interest rate charged by the lender varies.

Generally, adjustable rate home loan has lower interest rates than fixed rate home loans as the borrower bears the risk of a hike in interest rates.

A person wanting to secure a home loan must submit an application and the information on his/her financial history to the lender to prove that he or she is capable of repaying the loan.

Calculating a housing loan is no easy feat – what with all the jargons you will have to face as well as the numbers and formulas to determine your monthly home loan repayments.

An accurate calculation of home loan could significantly lighten a borrower’s efforts to acquire a home. A wrong calculation could affect your home loan instalments, which could eventually lead to the foreclosure of your house.

Thankfully, we have a Home Loan Calculator – a special calculator created to help homebuyers determine how much money they would have to pay monthly and how long it would take to fully pay the loan. With this tool, a homebuyer can easily see if he or she could afford the monthly loan repayments for their dream home.

This Home Loan Calculator takes into account the principal on the loan and the repayment of interest to arrive at the length of time that a homebuyer would have to pay off the loan. To achieve the most accurate figure, a homebuyer should ask the lender the interest rate in which they qualify.

The calculation of housing loan is based on the term of the loan as well as the size of down payment given by the homebuyer.

Paying a large down payment can help a homebuyer secure a high credit ceiling with a relatively low home loan amount. This is based on the assumption – with a fixed period of time – the bigger the down payment paid by the homebuyer, the smaller the home loan gets.

Homebuyers who cannot afford to pay a large down payment, can opt for a longer loan term to keep the monthly home loan repayment low. It has to be noted, however, that a longer instalment period means more money would have to be paid due to the accrued interest.

Using this Home Loan Calculator will help you get an estimate of the monthly home loan repayments for your dream home. It's easy to use and gives you a clear view on how much housing loan is needed. Take note that home loans (also known by some as ‘mortgage’) are subject to interest. Therefore, this calculator will help you to find out what’s the total price of the house that you need to pay in comparison to purchasing the house in cash.

In addition to estimating the monthly repayment, this Home Loan Calculator can also help you find the right combination between the amount of interest and the duration of the loan term, so that you can be confident committing to the monthly instalments.

Using this home loan calculator is simple. You only need to fill in four indicators:
- Property price
- Down payment in percentage
- Interest rate in percentage
- Period in years (and months if any)

Another thing that needs to be considered is that banks usually offer fixed interest rates for the first few years. This means that the interest rate during this period remains unchanged. After that, you will enter the floating interest period. Floating interest means the amount of interest changes according to national economic development – it may fluctuate up or down.

Do take note that this Home Loan Calculator is a simulation, not a certified reference for actual instalments. The actual instalments will be determined by the developer (for new projects) or seller (for subsale) and the bank you apply your home loan from. After knowing the calculation of home loan with this calculator, the next step is to understand the procedure and how to apply for a housing loan.

Do you feel that a bank’s computation for your monthly home loan instalment is wrong or too high? Are you afraid of being cheated into paying too much? Have no fear, we created a guide that details how your housing loan instalment is computed.

Calculating the monthly repayment for home loans is not the same as that for personal loans and hire purchase loans (which is often used for cars).

This is because home loans use the Reducing Balance Rate (also known as the Diminishing Balance Rate), which only imposes interest on the loan’s remaining principal balance. In comparison, personal loans and hire purchase loans come with Flat Rate Interest, meaning the interest remains the same during the entire loan tenure.

For instance, if the interest component for a personal loan is RM500, then during the last repayment schedule, the interest component will still be RM500. On the other hand, the interest component of a housing loan declines as interest will only be charged on the remaining principal balance.

What is the Formula for Monthly Home Loan Repayment?

Below is the formula for determining your monthly housing loan instalments.


Legend:
P = Principal Loan Amount
i = Monthly Interest Rate (Convert annual interest rate into decimal and divide by 12)
n = Loan Tenure in Months (Multiply annual loan tenure by 12)

But if you find that manually calculating the monthly loan instalment is a hassle, no worries! Just use this Home Loan Calculator!