Home Loan EMI Calculator

Are you planning to become a proud homeowner? Congratulations! You can easily avail a home loan to make your dream a reality. What’s more? With Money View’s Home Loan EMI Calculator, you can also find out how much EMI to pay. This will help plan your finances and get them in order so that the loan repayment can be done smoothly.

These home loan EMI calculators are also known as home loan eligibility calculators, home loan prepayment calculators, home loan tenure calculators, etc.

To use the calculator, all you need to provide is the amount that you want to avail, the rate of interest, as well as the repayment tenure. With our EMI calculator, you can also find out the breakdown of your installments
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Your EMI

₹9,13,695

₹19,28,676

₹2,19,28,676

Loan Amount
|
1L
|
1.25Cr
|
2.50Cr
|
3.75Cr
|
5.00Cr
|
6.25Cr
|
7.50Cr
|
8.75Cr
|
10Cr
Rate of Interest
|
6%
|
9%
|
12%
|
15%
Tenure
|
1yr
|
5yr
|
10yr
|
15yr
|
20yr
|
25yr
|
30yr

Your EMI

₹9,13,695

₹19,28,676

₹2,19,28,676

  • Loan Amount

  • Total interest

EMI Schedule

Year Opening Balance Interest Principal Closing Balance
2021 ₹ 2,00,00,000 ₹ 9,28,204 ₹ 54,67,659 ₹ 1,45,32,341
2022 ₹ 1,45,32,341 ₹ 8,99,456 ₹ 1,00,64,879 ₹ 44,67,462
2023 ₹ 44,67,462 ₹ 1,01,020 ₹ 44,67,455 ₹0.00

How to Use Home Loan Prepayment Calculator

Loans are repaid through EMIs or Equated Monthly Installments which is a set amount determined by the principal amount that is borrowed, the interest rate charged, as well as the repayment tenure chosen. The EMI amount can be fixed or variable throughout the term and will have to be paid by the borrower to the lender each month.

Our home loan interest rate calculator is tailored to be extremely user friendly. Follow the steps below to calculate your monthly EMI online and plan your finances effectively -

STEP 1: Enter the loan amount borrowed by using the slider to adjust

STEP 2: Enter the rate of interest that is imposed which can be adjusted by using the slider

STEP 3: Finally, enter the repayment period that is chosen in either years or months

That’s it! The EMI amount along with the repayment schedule will be displayed.

If quick and easy EMI calculation is what you’re looking for then the Money View home loan EMI calculator is perfect. You will no longer have to worry about miscalculating the EMI amount or worry about the correct formula to use.

Formula to Calculate Home Loan EMI 

To calculate your home loan EMI manually, use the formula below -

E =  [P x R x (1+R)^N ] / [(1+R)^N-1]

Where P stands for the principal amount that is borrowed

R represents the rate of interest imposed

N is the tenure in number of months

Let us understand this with an example -

  • Rs. 10,00,000 is the amount borrowed (P)

  • 8% is the annual rate of interest imposed 

  • 3 years  is the tenure (n)

Then the EMI to be paid using the above formula will be:

[10,00,000 x 0.00666 x (1+0.00666)^36]  / [(1+0.00666)^36-1] = Rs. 31, 336

Therefore, the EMI for a Rs. 10 lakh home loan is Rs. 31, 336.

The rate of interest (R) is calculated monthly i.e. it is calculated as (Annual Rate of interest/12/100) in this case (8/12/100 = 0.00666)

The above formula can be used to calculate EMIs for all types of loans and not just home loans, unless mentioned otherwise.

EMI schedule or amortization schedule is a table that illustrates how your EMIs are paid each month and its impact on your principal and interest amount. Though your EMI remains the same throughout the repayment term, your principal and interest amount will reduce over time. This change is illustrated through an amortization table. 

Given below is the table for the above example -

Year

Opening Balance

Interest

Principal

Closing Balance

2022

₹ 10,00,000

₹ 64,104

₹ 2,80,586

₹ 7,19,414

2023

₹ 7,19,414

₹ 45,614

₹ 3,30,413

₹ 3,89,001

2024

₹ 3,89,001

₹ 18,188

₹ 3,57,838

₹ 31,163

2025

₹ 31,163

₹ 208

₹ 31,128

₹0.00

To help you understand the nuances of home loan EMI calculation, here’s an example for you -

Aditya and his wife wish to purchase a new flat that costs Rs. 20 lakhs. They wish to avail a loan with a repayment term of 20 years and an interest rate of 8.2%. Using the Money View home loan EMI calculator, they have found out that their EMI for 20 lakhs home loan for 20 years is Rs. 17, 041 per month.

Month

Opening Balance

Interest

Principal

Closing Balance

2022

₹ 5,00,000

₹ 38,834

₹ 1,51,962

₹ 3,48,038

2023

₹ 3,48,038

₹ 24,578

₹ 1,66,216

₹ 1,81,822

2024

₹ 1,81,822

₹ 8,986

₹ 1,81,808

₹ 14

2025

₹ 14

₹ 0

₹ 0

₹0.00

Thanks to the home loan EMI calculator, Aditya can easily find out his EMI which will help him plan his finances effectively.

Did you know that the way interest is calculated can have an impact on your EMI? There are two ways of calculating the interest - flat balance method and reducing balance method.

Here is a quick comparison -

Flat Balance Interest Calculation

Reducing Balance Interest Calculation

Calculated on the overall repayment term

Calculated month on month individually 

Dependent on the complete loan amount borrowed

Depends only on the the principal amount outstanding each month

Interest remains the same throughout loan tenure

Interest calculation changes based on outstanding loan amount

Formula used for calculation is -

Interest = (Principal * loan tenure * interest rate per annum)/ Total number of installments

Formula used for calculation is -

Interest = Outstanding Loan Amount * Applicable Interest for Each Installment

The EMI to be paid will be slightly higher

The EMI to be paid will be slightly lower

There are multiple factors that have an impact on the interest rate and subsequently the home loan EMI amount to be paid. Some of the important factors include -

  • Credit Score

Your credit score is a numerical representation of your creditworthiness. The higher the score, the better are your chances of availing of a loan as a high score indicates better repayment ability

  • Location and Value of the House

Houses that are in newer or upcoming areas are considered to be more valuable or those that have amenities close by. Loans for such homes can generally be availed at a lower interest rate

  • MCLR Rates

The Marginal Cost of Funds based Lending Rate is the minimum that a bank or financial institution can lend at. This is decided annually and depends on various factors such as operating cost, the marginal cost of funds, etc. The interest rate imposed will increase or decrease based on variations in the MCLR rate

  • Loan to Value or LTV Ratio

This is essentially the percentage of the property value that the loan can finance. The higher the loan amount availed, the higher is the rate of interest as the risk is greater for the lender

  • Employment Status of Applicant

Salaried employees or those with a steady stream of income can generally avail loans at a relatively lower rate of interest as the risk is much lower for the lender as compared to applicants who are self-employed

  • Repayment Tenure

In addition to all of the above factors, the repayment term can determine the rate of interest imposed. Generally, a shorter repayment term leads to a lower rate of interest and vice versa.

Here’s why using  home loan prepayment calculator is beneficial -

  • Knowing how much EMI to pay will help you plan out your budget. This in turn will ensure that there are no missed payments

  • Manual calculations leave a lot of room for error. Our instant home loan eligibility calculator will prevent such mistakes

  • Our home loan EMI calculator can help you save time and effort

  • You can access the home loan EMI calculator online easily from anywhere at anytime

  • Additionally, if you know how much you owe, you can avoid the hassles of missed or delayed payments which can severely hamper your credit score

Other Loan EMI Calculators

Home Loan EMI Related FAQs

Ans: A home loan is nothing but a sum of money borrowed from banks or other financial institutions to fund the construction or purchase of a house. Certain home loans can also be used for home repairs or renovation. As is the case with other loans, home loans come with an interest rate determined by the principal amount borrowed as well as repayment tenure chosen.

Ans: EMI or Equated Monthly Installments refers to the amount paid by the borrower to the lender on a fixed date every month or as decided by both parties. This amount is determined by the principal amount borrowed, interest rate imposed, as well as repayment tenure, chosen.

Ans: EMI calculation can be made in two ways i.e., the flat balance or reducing balance interest method.

If the interest amount payable is based on the entire loan amount for the full duration of loan repayment, the EMI amount will not change during the tenure. This implies that the flat balance method was used for calculating the EMI.

However, in the case of reducing the balance interest rate method, the interest is calculated on the principal amount that is leftover or outstanding each time instead of the complete amount borrowed.

When availing of a home loan, you as a borrower must check which method is used to calculate your EMI amount.

Ans: Not paying the EMI amount will lead to penalties or the imposition of a higher interest rate. In case you are unable to pay your EMI due to unavoidable circumstances, talking to the lender and figuring out solutions such as moratorium or reduced EMI is necessary.

Not paying your EMI will also significantly impact your credit score.

Ans: Yes, you can avail of tax benefits through Home loan EMI payments as illustrated below -

Relevant SectionsNature of Home Loan DeductionMaximum Amount Deductible

Section 80C

Tax deductions on principal repayment

₹1,50,000

Section 24

Tax deductions on the interest amount payable

₹2,00,000

Section 80EEE

Additional tax benefit for first time home buyers

₹50,000

Ans: The EMI for a home loan of Rs. 30 lakhs with an assumed interest rate of 8% and repayment term of 20 years is easy to calculate thanks to the Money View home loan EMI calculator.

All you need to do is provide the necessary information and sit back.

In this case, the EMI to be paid is Rs. 25, 093 per month.

Ans: The amount you can avail as home loan depends on multiple factors as mentioned previously. These include -

  • Your credit score

  • Monthly income 

  • Debt-to-income ratio i.e., the amount of debt you are paying off with your existing salary

  • The cost of your home also matters. Generally, lenders offer upto 90% of the price of the property as loan

  • The amount you pay as down payment. Higher the down payment amount, lower will be the loan to be availed

  • The repayment term and interest rate imposed. Remember, higher the repayment, higher is the overall interest amount paid.

All these factors will determine the amount of home loan that you can get. While your salary is an important component, it is not the only factor that is considered.

Ans: Instead of manually calculating your EMI, you can use the Money View home loan EMI calculator.

All you need to do is enter the required information. In this case -

Loan Amount - Rs. 25 lakh

Repayment term - 15 years

Interest (assumed) - 8.2%

Using this calculator, we can find out that the EMI for 25 lakhs home loan for 15 years is Rs.24, 254 per month.