Use our Home Loan EMI Calculator to estimate the monthly EMI of your dream house and get a few PRO tips on how you can pay your home loan in a very short time using SIPs(Systematic Investment Plan).
What is Home Loan EMI Calculator?
Home Loan EMI (Equated Monthly Installment) is a fixed amount that a borrower needs to pay every month to the bank till the tenure of the Loan. Home Loan EMI Calculator calculates the monthly EMI of a Home Loan that contains both the Principal Part and Interest Part.
Formula to Calculate Monthly Home Loan EMI
Home Loan Monthly EMI is calculated based on Loan Amount, Interest Rate, and Loan Tenure. The Formula to Calculate monthly EMI(Equated Monthly Installment) is
PA * IR * [ (1+IR)^ LT / ( (1+IR)^ LT ) – 1 ]
| WHERE | |
|---|---|
|
PA |
Principal Amount or Loan Amount |
|
IR |
Interest Rate Monthly (IR/100/12) |
|
LT |
Loan Tenure (in Months) |
For Example, if the Home Loan amount is ₹10,00000, the Interest Rate is 8.6% and the Loan Tenure is 5 Years(60 months) then the monthly EMI will be 1000000 * (8.6/100/12) * [(1+(8.6/100/12))^60 / (1+(8.6/100/12))^60 – 1] = ₹20564.76. The Interest Rate needs to be converted into a monthly Interest Rate. Divide the IR by 100 and then by 12 to get the monthly Interest Rate.
Benefit of Using Home Loan EMI Calculator
- Accurate Monthly Budget Planning: After Calculating your monthly EMI(Equated Monthly Installments) you can effectively plan your Budgets and analyze whether you will be comfortable or not in paying EMIs. You can update the Loan Amount or Tenure to get the desired monthly EMI that you can afford to pay every month.
- Visual Representation of Loan Components: You can see the Principal Part and Interest Part visually in the Pie Chart to access how much amount you will pay as interest.
- Cost Analysis: Showing the total Interest Amount and Total Payable Amount lets you assess how much you will pay over the total tenure of the Loan.
- Comparison Tool: You can compare the different Loan Scenarios by adjusting parameters like Loan Amount, Tenure, and Interest Rate to find the most suitable EMI option for you.
- Time Saving & Convenient: The Home Loan EMI Calculator provides instant results for monthly EMI, saving users time and effort of manual calculation.
How to Use Home Loan EMI Calculator?
- Enter the Loan Amount in the First Input Field.
- Enter the expected rate of interest in the second input file. The default is 8.6%.
- Enter Loan Tenure in the third input field. That is for how many years you want the loan tenure to be.
- Prepayment if any done or planning to do that will directly go into your principal amount.
- Click on the Calculate button to see the Monthly EMI, Total Interest and Total Amount to be paid.
Check out our Compound Interest Calculator.
EMI is Equated Monthly Installments. In Simple words, it is the amount that borrowers need to pay the lender every month till Loan tenure ends. It contains both the Principal part and the Interest Part of the loan.
EMI is calculated based on Loan Amount, Loan Tenure(in Months), and Rate of Interest (every month). you can see the complete formula here
Prepayment is an amount that you pay on top of your monthly EMI. Prepayment if done in the first half of loan tenure will reduce your EMI as it goes completely as the principal amount. You will have the choice to reduce the monthly EMI or reduce the Loan Tenure. Since the Principal amount is reduced interest on that amount will for the rest of the loan tenure will be eliminated.