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Home Loan EMI Calculator
Calculate your Home Loan amount and EMI using this calculator
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● Quick & Accurate EMI Calculation: Get your monthly EMI, total interest payable and total payment promptly.
● Comparison of several loan scenarios: Try different loan amounts, interest rates, and tenures to make a payback schedule that suits your needs.
● Easy repayment schedule planning: Arrange your payback schedules upfront and borrow smartly.
What Is Home Loan EMI?
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?
How Does the Home Loan EMI Calculator Work?
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 = [3000000*.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.
Key Features and Benefits of Home Loan EMI Calculator
● Simple to use: Simply enter your loan amount, home loan interest rate, and tenure to get quick EMI calculations.
● Instant Results: See your monthly EMI, total interest payable, and total repayment amount in seconds.
● Flexible Inputs: Compare different payback scenarios by changing the loan amount, interest rate or tenure.
● Amortisation plan: Look at the detailed repayment plan, including the principal and interest component of each EMI.
Benefits
● Better Financial Planning: Calculate your EMI in advance and choose a repayment plan that fits your budget.
● Try different strategies: Consider alternative loan amounts, tenures and interest rates to get the best option.
● Better Borrowing Decisions: Understand the whole cost of your home loan before you apply.
● Free & Available Anytime: Use the online calculator as many times as you want, anytime, anywhere.
What Are Key Features of Home Loan EMI Calculator
1. It Helps You Calculate the EMI Amount
A home loan EMI calculator allows you to calculate the EMI that you are required to pay. Based on the details entered by you, such as the loan amount, interest rate, and tenure, the calculator will provide you with the result.
2. It Helps You Find the Right the EMI Amount
You can use this calculator multiple times until you get the desired result. You can keep changing the loan amount, tenure, and interest rate in the calculator until the estimated EMI amount fits your budget.
3. It Helps You Create a Financial Plan
As repaying a home loan is a big responsibility, it becomes essential to create a good financial plan. Following this plan will allow you to repay the loan without any financial hassles.
As a home loan EMI calculator helps you calculate the EMI amount, you will know how much money you need every month for loan repayment. This EMI amount will be a crucial factor in your financial plan. Therefore, a home loan EMI calculator can help you plan your budget.
How does EMI calculation help in planning the home purchase?
Once you determine the right the interest rate, loan amount, and tenure for you, it will become easy for you to understand your home loan eligibility. Thus, you can compare different lenders based on your calculation. Therefore, by knowing the EMI, the process of applying for a home loan can become convenient for you.
What Is Home Loan Amortisation Schedule?
Loan amortisation is the process of reducing the home loan debt by consistently repaying the EMI through the loan tenure. A home loan amortisation 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 amortisation table explaining the repayment schedule; it gives you a complete break-up of the interest and the principal amount.To better understand the home loan EMI journey, here is a 5-year amortisation table for a Rs.20 lakh home loan with a 20-year tenure at 8.5% interest:
| Year | EMI for 12 months (Rs) | Interest in a year (Rs) | Principal in a year (Rs) | Closing Balance (Rs) |
|---|---|---|---|---|
| 1 | Rs.2,08,278 | Rs.1,68,473 | Rs.39,805 | Rs.19,60,195 |
| 2 | Rs.2,08,278 | Rs.1,64,955 | Rs.43,323 | Rs.19,16,872 |
| 3 | Rs.2,08,278 | Rs.1,61,125 | Rs.47,152 | Rs.18,69,720 |
| 4 | Rs.2,08,278 | Rs.1,56,957 | Rs.51,320 | Rs.18,18,400 |
| 5 | Rs.2,08,278 | Rs.1,52,421 | Rs.55,856 | Rs.17,62,544 |
ABCD's Flexible Repayment Plans for Better Loan Eligibility
What is a Pre-Approved Home Loan?
After the validation process is finished, the lender will issue a pre-sanction letter. You must keep in mind that there is a validity period for finalising the property. If you fail to finalise a property within the validity period, then you will have to re-apply for the pre-approved loan.
What is Flexible and Fixed Home Loan EMIs?
Here are some options-
1. Flexible Home Loan EMIs
Mainly, there are two types of flexible home loan EMIs- step-up and step-down loan. If you have opted for a step-up loan, then the EMI amount will increase during the tenure. However, the EMI amount will decrease during the tenure if you have selected a step-down loan.
2. Increase in Floating Rate of Interest
The floating rate of interest varies based on the repo rate. If the floating rate of interest increases, then the lender might increase the loan tenure and not change the EMI amount. However, the lender might increase the EMI amount if the new tenure exceeds the maximum loan period that is allowed.
3. Prepayment of the Loan
The lenders allow you to pre-pay your home loan. This can have an impact on your EMIs.
For instance, if you make a partial prepayment of your home loan, then you can reduce the loan tenure to repay the remaining loan amount and keep the EMI amount same. You can also choose to reduce the EMI amount and keep the loan tenure constant.
What is a Home Loan Pre-EMI?
These pre-EMIs will stop when the loan is disbursed fully. After that, the payment of your regular EMIs will start.
What are the Tax Benefits of Paying Home Loan EMIs?
Availing a home loan can provide you with a few tax benefits, such as-
- Under Section 80C, the contributions you make towards the repayment of the principal amount can be claimed as a tax deduction of up to Rs. 1.5 Lakh.
- Under Section 22(2) (Previously 24(b)), the contributions you make towards the payment of the interest can be claimed as a tax deduction of up to Rs. 2 Lakhs.(only for rented properties)
- Under Section 130 (Previously 80EE), an additional tax deduction of up to Rs. 50,000 can be claimed for the payment of interest every year.(only for homebuyer in FY 2016-17 and for those who got home loan in FY 2019-2022)
Home Loan EMI Calculator FAQs (Frequently Asked Questions)
What is the Benefit of Calculating EMI?
Calculating your EMI helps you check loan affordability, compare different lenders and repayment options, and plan your monthly budget before applying for a home loan.
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?
Yes, you may claim deductions on principal repayment under Section 123 (previously 80C) of new Income Tax Act, interest paid under Section 22(2) (Previously Section 24(b)), and an additional deduction under Section 130 (Previously Section 80EE) for eligible first-time homebuyers, subject to applicable conditions.
Can I reduce my home loan EMI after taking the loan?
Yes. Your EMI can be reduced by opting for a longer loan tenure, making part-prepayments, or if your lender lowers the applicable interest rate.
What happens to my EMI if the interest rate changes?
If your home loan has a floating interest rate, your EMI or loan tenure may change depending on whether interest rates increase or decrease.
Is it better to reduce EMI or tenure on prepayment?
Reducing the loan tenure generally helps you save more on total interest, while reducing the EMI lowers your monthly repayment burden. The better option depends on your financial goals.
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.