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Home Loan EMI Calculator

Enter Loan Amount

₹

Please enter a valid number.

₹ 2 Lac ₹ 2 Crore

Select Tenure (months)

months

Please enter a valid number.

24 months 360 months

Select Interest Rate

%

Please enter a valid number.

9% 15%

Monthly EMI ₹17,674

Total Amount Payable ₹22,41,811

Monthly EMI ₹19,968

Interest

₹ 22,41,811

Principal Amount

₹ 20,00,000

Total Amount Payable

₹ 42,41,811

Monthly EMI

₹19,968

Home loan play a pivotal role in helping you achieve your plan of buying your dream home. The mechanism of home loan is quite simple. You can get up to 80% of your home value financed from a bank or financial institution and repay it in monthly instalments in 2-30 years.

However, setting the right instalment is crucial, as a poor decision can either negatively impact your finances or lead to excessive interest payments. This is why calculating your home loan EMI (equated monthly instalment) in advance is both important and wise.

What is Home Loan EMI?

The basic principle behind most loans is that you receive funds from a financial institution and repay the same in instalments, along with interest. Home loan repayment is divided into monthly instalments of a fixed amount. These instalments are known as home loan EMIs. An EMI includes both the principal and interest components.

How to use Home Loan EMI Calculator?

A home loan calculator can help with quick EMI calculation and using it is simple. You need to enter the loan amount, home loan interest rate and tenure to know the exact EMI amount you need to pay. This enables you to evaluate various home loan options and select the best tenure and loan amount that fit your budget.

Formula to determine Home Loan EMI Amount

To calculate your house loan EMI amount, you need to use the following home loan EMI calculation formula:

P x R x (1+R)^N / [(1+R)^N-1]

Where,
P = Principal amount
N = Loan tenure in months
R = Monthly rate of interest

You can understand the above formula with a simple example. Suppose you have taken a loan of ₹ 50,00,000 at an annual interest rate of 7.8% per annum for a tenure of 20 years (240 months). You can calculate the EMI amount using the above home loan EMI formula in the following way:

EMI = 50,00,000 x 0.0065 x (1+0.0065) ^ 240 / [(1+0.0065) ^ 240-1]

EMI = ₹ 41,202

Therefore, after taking a loan of ₹ 50 lakhs at 7.8%, you will have to repay the same in monthly instalments of ₹ 41,202 over 20 years. That sums up to ₹ 98,88,480. Therefore, the total interest component throughout the loan tenure is ₹ 48,88,480. However, the above formula for calculating home loan EMI can be difficult for most people, making a home loan calculator essential.

Features & Benefits

Manual EMI calculations can be error-prone and time-consuming. A simpler way is to use a home loan EMI calculator by inputting the loan amount, interest rate, and tenure. Here's why it's beneficial:

Quick Calculations

Instead of lengthy manual calculations, you get instant results by entering three inputs.

Comprehensive Insights

It provides the monthly EMI, total interest, and amount payable, aiding better financial decisions.

Easy Comparison

It allows you to quickly compare loan offers by calculating EMI, interest outflow, and tenure options.

Error Free

The automatic process ensures accuracy, minimizing mistakes common in manual calculations.

What is Amortisation Schedule?

The home loan amortisation schedule shows the bifurcation of the EMI amount into principal and interest for each month. This gives you a clear idea of the interest portion and principal portion of your house loan EMI amount for each month and the balance of the loan remaining after the EMI repayment.

Certain home loan EMI calculators with monthly breakup also generate the home loan amortisation schedule. No additional input is required to prepare the amortisation schedule. Loan amount, tenure and interest rate are sufficient to generate the schedule along with the home loan EMI calculator chart providing you with a visual representation. However, ensure that you use a home loan EMI calculator that includes a repayment schedule.

What are the factors that affect Home Loan EMI?

Home loan EMI shows the amount of loan you need to repay each month. The following are the different factors that affect the home loan EMI:

1

Loan Amount

The loan amount directly affects EMI. A higher loan means a higher EMI, while a lower loan means a lower EMI. Choose the loan amount based on your budget, income, and expenses.

2

Interest Rate

EMI depends on the interest rate—higher rates lead to higher EMIs, and lower rates reduce EMIs. Interest rates are influenced by RBI policy and repo rate.

3

Loan Tenure

A longer tenure lowers EMI but increases interest costs. A shorter tenure raises EMI but saves on interest due to quicker repayment.

Frequently Asked Questions (FAQ’s)

A home loan calculator has become more of a necessity than a choice for home buyers. It allows home buyers to calculate the EMI amount beforehand till the end of the loan tenure. Further, it also facilitates the comparison of different loan options. This helps you make informed financing decisions and choose the right lender.

It also helps you get a clear idea of the ideal downpayment to make and the amount that you should finance through a home loan. The EMI calculation can be done anytime and anywhere, simply by using your smartphone.

The home loan principal repayment can be claimed as a deduction under Section 80C of the Income Tax Act, 1961 of up to ₹ 1.50 lakhs for each financial year. Further, the home loan interest can also be claimed as a deduction under Section 24(b).

A home loan calculator is highly accurate as there is no chance of human error. The entire calculation is automated. All you need to do is enter the home loan amount, tenure and interest rate to calculate your home loan EMI.

While home loan is meant for the purchase or construction of your home, you can also use the funds for home extensions, improvements, or renovations.

To avail of a home loan, you need to fulfil certain eligibility criteria of the lender. This includes residential status, age criteria, income and occupation criteria, etc.

Home Loans are one of the most affordable loans as they are a type of secured loan. Therefore, the interest rate on home loans is quite affordable. The exact interest rate depends on the profile of the borrower and the type of property.