Home Loan EMI Calculator

Each one of us dreams of becoming a home owner by a certain age in our lives. We usually plan to buy a home in our 30s. But since our salaries cannot match the ever increasing property rates, we can afford to buy a home only by taking it on a loan and paying it off in EMIs over a stipulated tenure. You can use a housing loan calculator to calculate your EMIs.

What is Home Loan EMI?

A home loan is a facility provided by your bank that allows you to purchase an apartment, flat, villa, bungalow, etc. The bank pays off the real estate company/ previous home owner the actual, current amount of the property and the borrower is expected to repay this amount to the bank. The borrower may repay this principal amount in instalments, by paying a set interest rate over a stipulated tenure. These instalments are known as Equated Monthly Instalments or EMIs. EMIs allow you to comfortably pay off the loan in small, affordable instalments.

EMI Calculator APR Calculator Amount Rate of Interest(%) Loan Terms Total Interest

Total Amount Monthly Payment Rs. 1,977.00

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How is my Home Loan EMI calculated?

Your home loan EMI is calculated with the help of a freely available online tool known as a home loan EMI calculator. The calculator is made up of three tabs.

Principal tab in which you need to enter the principal loan amount required. Interest rate tab in which you must enter the interest rate you can afford to pay. Tenure tab in which you must enter the loan tenure you’d prefer, in months.

Banks offer loans up-to 30 year tenures. When you calculate the principal, rate of interest and tenure in the home loan calculator, you arrive at the equated monthly instalment or EMI. EMI is calculated using the below formula

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

What Is a Home Loan Amortization Schedule?

The bank typically provides an amortization or repayment schedule with your home loan to help you keep track of your EMIs. You can keep viewing this schedule to understand the EMIs until the loan is paid off in full. The schedule provides you details about

The number of paid and pending EMIs

Due date of each EMI

Opening principal amount on which interest is charged

Principal and interest component of the EMI

Closing or remaining principal, post each month’s EMI payment

Rate of interest, per annum (fixed or floating)

Advantages

You can buy your dream house today and pay for it in comfortable EMIs over a stipulated tenure

Home loans come with low interest rates

Owning a home provides you with lifelong financial security

The housing loan EMI calculator facilitates 100% accurate EMI calculations, leaving no room for manual errors

You can earn tax benefits on principal loan amount and interest

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