Home Loan EMI Calculator – Calculate Your Housing Loan EMI Online

Given the high price of real estate in India, purchasing a house can be a challenging task without an external source of finance. An increasing number of prospective home buyers are opting for this type of credit to fund their house purchase. It is no surprise that housing credit grew by over 16% in FY18.

The primary responsibility of a potential borrower is to have an exact estimate of the EMI amount they are liable to pay. One can take advantage of a home loan EMI calculator to arrive at the precise number.

How can home loan EMI calculator help you?

Equated Monthly Instalment or EMI is a fixed amount that a borrower must pay back to the lender every month till their tenure ends.

Calculating the EMI and its components can be a cumbersome exercise for first-time financers. A home loan EMI calculator India can do these complex calculations in no time, and save you from the trouble of doing it manually.

• Manually performing such complicated home loan EMI calculations can be both time-consuming and inaccurate. A home loan EMI calculator saves the valuable time of prospective home buyers.
• It gives you an accurate estimate, which is pivotal for financial planning. There is no probability of any inaccuracies or ambiguity.
• The EMI calculation procedure for each type of loan is different. For example, home loan EMI calculation is different from personal loan EMI. The EMI Calculator for Home Loan is specific only for home loans.
• The online calculator is free for unlimited use. You can check the EMI for various loan amounts and determine which amount suits your financial situation.

The formula to determine home loan EMI amount

All online calculators use a specific home loan EMI calculator formula to arrive at the exact EMI amount, which is –

A home loan EMI calculator online can help you find the exact amount without fail.

For example, assume that a person avails a home loan worth Rs. 1 Crore for a tenure of 15 years at an agreed-upon interest rate of 12%. So, according to the formula –

E = [1,00,00,000 × 12 × (1 + 12)¹⁵] / [(1 + 12)¹⁵ − 1]

A home loan EMI calculator India will instantly help you compute the exact result, which in this case should be Rs. 1,10,108.

Now, each loan EMI has two components – a principal component and an interest component. At the beginning of the tenure, the interest component is high, and the principal part is relatively low. The equation changes with every passing month, as the total interest to be paid reduces faster. So, with every EMI paid, the interest component decreases while the principal component increases.