Home Loan EMI Calculator

How Does A Home Loan EMI Calculator Work?

A home loan EMI calculator helps you to figure out your monthly payments by considering three main factors:

1. Loan Amount (P): The total money borrowed.
2. Interest Rate (r): The rate at which interest is charged, calculated monthly.
3. Loan Tenure (n): The total time period for which the loan is taken, in months.

The formula to calculate EMI is: EMI = (P × r × (1 + r)ⁿ) / ((1 + r)ⁿ - 1)

This formula gives you the amount you need to pay every month to repay your loan. You just enter the necessary details into the provided fields, and the calculator quickly gives you accurate results based on that information.

Some EMI calculators also show a payment schedule, which tells you how much of each payment goes towards interest and how much pays off the loan balance over time.

It’s important to remember that these calculations assume a fixed interest rate and regular monthly payments. However, the actual EMI will depend on the specific terms of your loan.

Let’s say you take a home loan of ₹30 lakh at an interest rate of 10% per year for 15 years. Here’s how you would calculate the EMI:

1. P = ₹30,00,000 (Loan Amount)
2. R = 10% per year, or 0.0083 per month (Interest Rate converted to months)
3. N = 15 years, or 180 months (Loan Tenure)

Now, using the EMI formula:

EMI = 30,00,000 × 0.0083 × (1 + 0.0083)¹⁸⁰ / ((1 + 0.0083)¹⁸⁰ - 1)

Here’s a streamlined method for using a free online house loan EMI calculator:

1. Search for an EMI Calculator online.
2. Fill in the loan amount, interest rate, and loan term.
3. Click ‘Calculate’ to get your EMI details.
4. Review the result for monthly payments and total costs.