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Top 6 Things You Must Know About Home Loan EMI Calculator

Equated Monthly installments or EMIs are one of the most important aspects of your home loan. When you take a home loan, the lender allows you to repay it in small amounts every month, which is called the EMI. The EMI amount often determines your financial planning and monthly budget.

Therefore, managing your loan becomes much easier when you know how much EMI you would need to pay beforehand as then you can judge your affordability. You can calculate your EMI even before applying for a home loan with the help of an EMI calculator. Allow us to tell you more about a Home Loan EMI calculator and a few other things you should know about it.

What is a home loan EMI calculator?

Home EMI calculator is an online tool that helps you calculate your EMI payout even before you take a loan. To know your EMI, you need to input some information like your expected loan amount, tenure, and interest rate in the calculator. The calculator processes this information to determine the amount you will have to shell out each month towards your home purchase.

Here are a few things you should know about home loan EMI

  1. EMI calculator works as per a mathematical formula

While the EMI calculator is an easy and quick way to calculate your EMI, it is based on a mathematical formula. To find your EMI, without using a calculator, you can use the following formula-

E = P * r * (1+r)^n / ((1+r)^n-1)


E is the equated monthly instalment amount,

P is the principal loan amount or the loan you want to take

r is the expected rate of interest calculated monthly.

  1. You can experiment with an EMI calculator

EMI calculator is a useful tool to know how much loan you can comfortably repay. Let’s understand this with an example. You have entered Rs 30 lakhs as the loan amount, 15 years as tenure and 10% as interest. You would get an EMI of Rs 32,275. Now if you feel that you cannot afford this EMI amount, you can alter the tenure. If you increase the tenure to 20 years, this EMI would reduce to Rs 28,990 monthly. Accordingly, you can easily alter the tenure and loan amount to change the EMI value. You can reduce or increase the loan tenure and even loan amount to come to an EMI value that is suitable as per your financial capability.

  1. Home Loan EMI calculator is easily available

Home Loan EMI calculator is easily available online. Be it a bank or a financial institution, almost all lenders have an EMI calculator on their website for your use. Before you contact the lender for the home loan, you can simply visit their website; enter your details to find the EMI.

  1. EMI calculator needs no personal information

You do not need to enter your name, address, email id, or any other personal details on the EMI calculators online to calculate the Home loan EMI.

  1. You can get comprehensive details about your loan using the EMI calculator

You can also understand the repayment pattern in detail from an EMI calculator. Some calculators also help you get a schedule of repayment that gives details of the EMIs and a breakdown in to principal amount and interest payout for the EMIs.

Home loan EMI Calculators help you get an idea of the potential EMI payable even before you apply for a home loan. Without any need for manual calculations, it enables you to input various permutations and combinations to arrive at your desired EMI amount. Hence, it is always a good idea to know and use an EMI calculator to plan your budget to adjust your EMI in a way that it does not affect your other expenses. Not only can it be used to plan a home loan, but also can be helpful while taking any other loan.

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