How to calculate EMI on home loan?

Last Updated : Dec. 28, 2019, 12:15 p.m.

You can compute your home loan EMI using the EMI calculator online. It is an online device that estimates one’s loan installments using a mathematical formula. The loan calculator device calculates your home loan EMI using the formula [P x R x (1+R)^N]/[(1+R)^N-1]. You just need to insert the loan details inside the calculator to compute the EMI instantly. Details required for the EMI calculation are loan amount, interest rate and loan tenure.  Many banks and housing finance companies give access to the loan calculators to the customer for an easier loan calculation.

For instance, if you borrow a loan amount of INR 25 lakh at an interest rate of 15.6% for 25 years then the calculator will compute the loan EMI as [25×15.6x(1+15.6)^25]/[(1+15.6)^25-1]. The EMI for the given loan amount would be INR 32,021.