Home Loan EMI Calculator

Calculate your Home Loan amount and EMI using this calculator

All fields are mandatory *

Please enter loan amount between 1,00,000/- to 1,20,00,000/-
Years Please enter loan tenure between 1 to 30 years
% Please enter interest rate between 7% to 11%

Your EMI

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Total Interest 0
Total Payout 0
Home Loan EMI Calculator
A home loan EMI calculator is a handy tool that helps home loan borrowers to plan their loan well in advance. While you may prepare a budget and do a careful assessment of your current and future financial condition, you can use the home loan EMI calculator for better planning.

What Is Home Loan EMI?

EMI, which stands for Equated Monthly Instalment, is a loan repayment method that allows you to repay the principal amount and the interest in equal instalment every month until the end of the loan tenure. Knowing in advance the exact EMI amount, you must repay every month to the lender can help you set aside the required amount, and thus manage the repayment better.

The EMI amount you pay to the lender includes both the principal amount and the interest. During the initial few years of the loan tenure, a major chunk of the EMI goes towards the repayment of the interest amount. As you continue to pay the EMI, during the later years, a higher portion of the EMI is used to repay the principal amount.

The lenders usually decide the EMI based on several factors, including the amount you borrow, credit score, age at the time of applying for the loan, loan tenure, etc.

What Is a Home Loan EMI Calculator?

The home loan EMI calculator is an online tool that allows the loan borrowers to calculate the EMI of their loan. Repaying the home loan is a big commitment, and it requires careful financial planning. Before you apply for a loan, it is paramount that you assess your repayment capacity to avoid the hassles of non-repayment.

This is where the EMI calculator plays an important role. With this online tool, you can know the exact EMI payable based on the input you provide, including interest rate, the amount applied, and the duration. You can change the data multiple times and know the maximum EMI you can afford to repay. This helps you to apply for an affordable loan.

Apart from helping you know the EMI payable, the EMI calculator also helps you know the exact payment schedule and the total payment break-up.

How Does the Home Loan EMI Calculator Work?

Today, almost all the lenders in India have this tool on their website to help the customer calculate the EMI. You can also calculate the EMI on other comparison websites.

Most home loan EMI calculators work on the following mathematical formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

In the above formula, P, R, N are variables, which means you can change the value of these components, and the EMI amount will vary based on the value of the variables.

  • P stands for the principal amount (the actual loan amount you apply for)
  • R stands for the interest rate.
  • N stands for the loan tenure. For EMI calculation purposes, it is better to enter tenure in months.

Let us under the above formula with an example:
Assuming that you apply for an Rs. 30 lakhs at 9% interest rate per annum for 15 years, then as per the formula,

EMI = [300000*.75 /100*(1+.75 /100) ^180] / [(1+.75 /100)^180-1] = Rs 30,428

You can calculate the EMI manually or through MS Excel, but if you have no experience with the calculation, the process may seem overwhelming and time-consuming. To avoid such hassles, it is better to use the EMI calculator and get faster and accurate results.

What Are the Benefits of Using a Home Loan EMI Calculator?

There are many benefits of using the home loan EMI calculator, which are listed below:

  • First and foremost, using the home loan EMI calculator is easy. Anyone can use it, and there is no need to have any technical expertise. You must only enter the inputs in the calculator, and the tool will automatically do the complex calculations.
  • Even though you pay the home loan EMI consistently, you may not know the exact break-up of the amount. This tool gives you an accurate breakdown of the EMI, including interest payable, and the processing fee. Since most lenders tend to present the various costs as part of the loan amount, knowing the exact value can help you understand the actual loan cost.
  • Another significant benefit of the home loan EMI calculator is that it allows you to compare the offers from different lenders. You can know actual loan costs and the respective EMI, which can help you find the right lender that offers the loan at a competitive rate.
  • When you apply for a home loan, choosing the right tenure is critical as it has a direct impact on the EMI and the affordability. If you can afford to pay a higher EMI, you can choose a loan for a shorter duration and pay off the loan faster. If you are looking to reduce your monthly EMI payment, you can apply for a longer period.
  • When you negotiate a home loan offer with the lender, you must verify the repayment schedule using the EMI calculator. Remember, sometimes, there may be a difference in the numbers. This happens because the lenders include various charges, apart from the interest in their EMI calculations.
  • During the loan tenure, if you get any additional funds to make prepayments, you must calculate how repaying the part of the loan can help you close the loan account before the actual tenure. The EMI calculator can help you do the calculations.
  • Since the home loan EMI calculator is an online tool, you can use it for free. You can use the tool any number of times without incurring any cost. Also, the tool is available 24x7, and you can use it to calculate your EMI as per your convenience.

What Is Home Loan Amortization Schedule?

Loan amortization is the process of reducing the home loan debt by consistently repaying the EMI through the loan tenure. A home loan amortization schedule is essentially a table that lists the amount you have repaid to date, including the interest component and the principal amount.

You can use the EMI calculator to get a clear understanding of the ratio of the principal amount to interest. The tool also provides an amortization table explaining the repayment schedule; it gives you a complete break-up of the interest and the principal amount.
Final Word
The home loan EMI calculator is a handy tool that all home loan borrowers must use before applying for a loan to calculate the EMI and plan their finances so that repayment is easy.

Home Loan EMI Calculator FAQs (Frequently Asked Questions)

How Do I Apply for a Home Loan?

To apply for a home loan, visit the page of your loan provider. Fill the online application form and the representative will contact you within the stipulated time.

What is an E-Home Loan?

An E-Home Loan is an online home loan that can be borrowed to purchase a house. It enables a borrower to complete the entire home loan application process online.

What is Home Loan EMI?

A home loan EMI is a monthly payment that a borrower makes in order to repay the home loan amount. An EMI stands for Equated Monthly Instalment. The principal amount, along with interest, is paid to the bank via EMIs.

What is the Benefit of Calculating EMI?

An EMI is a fixed amount that a borrower must pay every month in order to repay the loan amount. Therefore, by calculating EMI, an individual can find out loan affordability, decide the loan amount, and plan the monthly budget.

When Does My Home Loan EMIs Start?

EMIs start just after the month in which loan disbursement was made.

How do Part-Prepayments Impact Your EMIs?

Part-prepayment lowers the outstanding loan amount. Thus, it reduces the interest amount due. Therefore, the contribution of EMI for principal repayment increases. Hence, part-prepayment helps in repaying the loan faster.

How Does Home Loan EMI Payment Reduce Tax Obligation?

Under the Income Tax laws, a home loan borrower can claim tax deductions on the principal and interest payments made to repay the loan amount.

DisclaimerThe information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.