Home Loan EMI Calculator

Buying a home is one of the major milestones for almost every household in India. In most cases, the purchaser spends his or her lifetime earnings on buying a home. Even that often becomes insufficient due to the ever-increasing real estate prices.

In such cases, prospective buyers opt for a home loan. According to a recent report in The Economic Times, around 28% of all loans in India are housing loans.

Compared to developed countries like the USA, where about 55% of loans are housing loans, the percentage is lower. However, considering India’s large population, 28% is still a significant number.

Many people opt for a home loan without clearly understanding what their EMI will be or how they can smartly reduce it or close the loan quickly. A Home Loan EMI Calculator can help you in this regard.

What Is EMI ( Equated Monthly Installment )?

EMI stands for Equated Monthly Installment. It is the amount you need to pay to the bank every month for your loan. The EMI is determined based on the rate of interest and the loan tenure.

EMI consists of two components: the principal and the interest. During the initial years, the principal component is lower compared to the interest component. After a few years, the principal portion gradually increases, and the interest portion becomes lower.

Most home loan companies calculate the principal and interest components on a monthly reducing balance basis. This means that every month, the remaining principal and the remaining tenure are recalculated, and based on that, the new interest and principal components are determined.

What Is a Home Loan EMI Calculator?

Calculating the home loan EMI manually is time-consuming and error-prone. The Home Loan EMI Calculator is an intuitive online tool that helps you figure out your EMI based on the loan amount, loan tenure, and rate of interest.

The calculator also allows you to check how much you can save and how quickly you can close your home loan if you make regular part-prepayments or a one-time part-prepayment.

Please note that any prepayment you make toward your home loan is deducted from the principal. This means you will pay less interest over time, and your loan tenure will also get reduced.

How Home Loan EMI Calculator Work?

The Home Loan EMI Calculator works on the following formula.

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

Where,

• E = EMI amount
• P = Principal amount
• R = Interest Rate
• N = Loan Tenure

For Example,  If you take a home loan of Rs 60 lakh for 20 years at an interest rate of 8.85%, your EMI would be Rs. 53,406 per month.

E = [60,00,000 x 8.85 x (1+8.85) ^ 20] / [(1+8.85) ^ 20-1]

How To Use The Home Loan EMI Calculator?

To use the Home Loan EMI Calulator, you need to provide the following inputs.

• Loan Amount
• Loan Tenure
• Loan Rate of Interest
• One-time Prepayment Amount and Month
• (In case you are making a one-time prepayment)
• Prepayment Amount and Frequency
• (In case you are making regular part-prepayments)

Based on these inputs, the calculator will give you following outputs.

• Your Monthly EMI
• Total Payment
• Total Interest Payable
• A message showing how much you will save and how quickly you can close your loan if you make part pre-payments (monthly or one-time)

Benefits Of Home Loan EMI Calculator

• The use of this Home Loan EMI Calculator is completely free and unlimited.
• You will get an idea of what your EMI will be.
• You will understand how much you can save if you make pre-payments.
• You will see how quickly you can close your loan if you opt for part-prepayments.
• The amortization schedule will give you a detailed monthly breakup of your principal and interest components.

Conclusion : Home Loan EMI Calculator

The Home Loan EMI Calculator can make your life easier by helping you plan your finances better. The Part Pre-Payment module helps you decide whether it makes sense to use your surplus money for pre-payment so that you can save on interest.

On top of that, this online Home Loan EMI Calculator is completely free to use without any restrictions. The intuitive pie chart helps you visualize the breakup of the principal amount and the total interest payable over the full loan tenure.

You no longer need to depend on assumptions — you can now make an informed and sensible borrowing decision with proper financial planning.

FAQ | Home Loan EMI Calculator