What is Home Loan EMI?
Before getting to know about the Home Loan EMI calculator, it’s important to have basic information about what is home loan EMI because if you don’t know the thing that you’re calculating then it will be a total wastage of time to learn about the calculator. EMI, the short form for Equated Monthly Installments, is a fixed monthly amount that you pay every month in order to return the borrowed amount from the lender. Since a lot of individuals cannot pay the full amount in one go to buy their dream home, they opt for the easy EMI facility which is a flexible repayment option.
Your home loan EMI is basically made up of two parts – principal and interest. The portion of these two parts can differ based on the floating interest rate offered by the lender. You also need to remember that, in case of longer tenure (which is mostly the case in a Home Loan facility), say 15 to 20 years, the interest portion tends to have a higher portion in the EMI amount as compared to the principal amount for the few initial 10 years and after these years, principal amount starts to possess higher proportion than interest.
|Monthly Instalment (EMI)|
|Total Interest Amount|
|Total Amount (Principal + Interest)|
Home Loan Calculator
Now you’ve known enough about the EMI amount, it’s time to introduce you with the much-talked-about Home Loan EMI Calculator. This calculator helps you in estimating your EMI amount with the help of a few basic details. Like any other calculator, it thrives on the inputs that you give to it. In the case of a home loan calculator, it only needs three inputs – loan amount, rate of interest, and tenure. As soon as you feed all these details into it, you will get the desired output as the EMI amount. The process of using it is so handy that it can be used by anyone.
You can look at the home loan payment for a loan amount of INR 35,00,00 at an interest rate of 7.30% per annum for a repayment period of 30 years. You can cross check the values by putting the same values in the calculator above. Keep an eye on how the EMI amount tends to change over a period.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
|Loan Amount||Interest Rate||Tenure||Monthly Instalment||Total Interest Amount||Total Amount|
|₹ 35,00,000||7.30%||1||₹ 3,03,328||₹ 1,39,935||₹ 36,39,935|
|₹ 35,00,000||7.30%||2||₹ 1,57,180||₹ 2,72,331||₹ 37,72,331|
|₹ 35,00,000||7.30%||3||₹ 1,08,551||₹ 4,07,820||₹ 39,07,820|
|₹ 35,00,000||7.30%||4||₹ 84,300||₹ 5,46,393||₹ 40,46,393|
|₹ 35,00,000||7.30%||5||₹ 69,801||₹ 6,88,039||₹ 41,88,039|
|₹ 35,00,000||7.30%||6||₹ 60,177||₹ 8,32,744||₹ 43,32,744|
|₹ 35,00,000||7.30%||7||₹ 53,339||₹ 9,80,488||₹ 44,80,488|
|₹ 35,00,000||7.30%||8||₹ 48,242||₹ 11,31,253||₹ 46,31,253|
|₹ 35,00,000||7.30%||9||₹ 44,306||₹ 12,85,013||₹ 47,85,013|
|₹ 35,00,000||7.30%||10||₹ 41,181||₹ 14,41,742||₹ 49,41,742|
|₹ 35,00,000||7.30%||11||₹ 38,647||₹ 16,01,412||₹ 51,01,412|
|₹ 35,00,000||7.30%||12||₹ 36,555||₹ 17,63,989||₹ 52,63,989|
|₹ 35,00,000||7.30%||13||₹ 34,804||₹ 19,29,439||₹ 54,29,439|
|₹ 35,00,000||7.30%||14||₹ 33,320||₹ 20,97,725||₹ 55,97,725|
|₹ 35,00,000||7.30%||15||₹ 32,049||₹ 22,68,807||₹ 57,68,807|
|₹ 35,00,000||7.30%||16||₹ 30,951||₹ 24,42,643||₹ 59,42,643|
|₹ 35,00,000||7.30%||17||₹ 29,996||₹ 26,19,190||₹ 61,19,190|
|₹ 35,00,000||7.30%||18||₹ 29,159||₹ 27,98,402||₹ 62,98,402|
|₹ 35,00,000||7.30%||19||₹ 28,422||₹ 29,80,232||₹ 64,80,232|
|₹ 35,00,000||7.30%||20||₹ 27,769||₹ 31,64,630||₹ 66,64,630|
|₹ 35,00,000||7.30%||21||₹ 27,189||₹ 33,51,545||₹ 68,51,545|
|₹ 35,00,000||7.30%||22||₹ 26,670||₹ 35,40,926||₹ 70,40,926|
|₹ 35,00,000||7.30%||23||₹ 26,206||₹ 37,32,720||₹ 72,32,720|
|₹ 35,00,000||7.30%||24||₹ 25,788||₹ 39,26,873||₹ 74,26,873|
|₹ 35,00,000||7.30%||25||₹ 25,411||₹ 41,23,329||₹ 76,23,329|
|₹ 35,00,000||7.30%||26||₹ 25,071||₹ 43,22,033||₹ 78,22,033|
|₹ 35,00,000||7.30%||27||₹ 24,762||₹ 45,22,928||₹ 80,22,928|
|₹ 35,00,000||7.30%||28||₹ 24,482||₹ 47,25,958||₹ 82,25,958|
|₹ 35,00,000||7.30%||29||₹ 24,227||₹ 49,31,066||₹ 84,31,066|
|₹ 35,00,000||7.30%||30||₹ 23,995||₹ 51,38,194||₹ 86,38,194|
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
|1||₹ 33,547||₹ 2,54,392||₹ 34,66,452|
|2||₹ 36,080||₹ 2,51,860||₹ 34,30,372|
|3||₹ 38,803||₹ 2,49,136||₹ 33,91,568|
|4||₹ 41,733||₹ 2,46,207||₹ 33,49,835|
|5||₹ 44,883||₹ 2,43,056||₹ 33,04,951|
|6||₹ 48,272||₹ 2,39,668||₹ 32,56,679|
|7||₹ 51,916||₹ 2,36,023||₹ 32,04,762|
|8||₹ 55,835||₹ 2,32,104||₹ 31,48,927|
|9||₹ 60,050||₹ 2,27,889||₹ 30,88,876|
|10||₹ 64,584||₹ 2,23,355||₹ 30,24,291|
|11||₹ 69,459||₹ 2,18,480||₹ 29,54,831|
|12||₹ 74,703||₹ 2,13,236||₹ 28,80,128|
|13||₹ 80,343||₹ 2,07,597||₹ 27,99,784|
|14||₹ 86,408||₹ 2,01,531||₹ 27,13,376|
|15||₹ 92,931||₹ 1,95,008||₹ 26,20,444|
|16||₹ 99,947||₹ 1,87,992||₹ 25,20,497|
|17||₹ 1,07,492||₹ 1,80,447||₹ 24,13,004|
|18||₹ 1,15,607||₹ 1,72,332||₹ 22,97,396|
|19||₹ 1,24,335||₹ 1,63,605||₹ 21,73,061|
|20||₹ 1,33,721||₹ 1,54,218||₹ 20,39,339|
|21||₹ 1,43,816||₹ 1,44,123||₹ 18,95,523|
|22||₹ 1,54,673||₹ 1,33,266||₹ 17,40,849|
|23||₹ 1,66,350||₹ 1,21,589||₹ 15,74,498|
|24||₹ 1,78,908||₹ 1,09,031||₹ 13,95,590|
|25||₹ 1,92,415||₹ 95,525||₹ 12,03,175|
|26||₹ 2,06,940||₹ 80,999||₹ 9,96,234|
|27||₹ 2,22,563||₹ 65,376||₹ 7,73,670|
|28||₹ 2,39,365||₹ 48,574||₹ 5,34,305|
|29||₹ 2,57,435||₹ 30,504||₹ 2,76,869|
|30||₹ 2,77,014||₹ 11,070||₹ 0|
Comparison of Home Loan EMIs for Different Loan Amounts
For your convenience, we are providing you a comparison through different loan amounts so that you can have a clear idea about the EMI and total interest outgo with having various tenure also.
Home Loan EMI Details for INR 20 lakhs
|Tenure (In Years)||EMI @7.30% Interest Rate||Total Interest Outgo|
|10||INR 23,532||INR 8,23,853|
|15||INR 18,314||INR 12,96,461|
|20||INR 15,868||INR 18,08,360|
|25||INR 14,521||INR 23,56,188|
|30||INR 13,711||INR 49,36,111|
Home Loan EMI Details for INR 25 lakhs
|Tenure (In Years)||EMI @7.30% Interest Rate||Total Interest Outgo|
|10||INR 29,415||INR 10,29,816|
|15||INR 22,892||INR 16,20,576|
|20||INR 19,835||INR 22,60,450|
|25||INR 18,151||INR 29,45,235|
|30||INR 17,139||INR 36,70,138|
Home Loan EMI Details for INR 30 lakhs
|Tenure (In Years)||EMI @7.30% Interest Rate||Total Interest Outgo|
|10||INR 35,298||INR 12,35,779|
|15||INR 27,471||INR 19,44,692|
|20||INR 23,802||INR 27,12,540|
|25||INR 21,781||INR 35,34,282|
|30||INR 20,567||INR 44,04,166|
Home Loan EMI Details for INR 50 lakhs
|Tenure (In Years)||EMI @7.50% Interest Rate||Total Interest Outgo|
|10||INR 59,351||INR 21,22,106|
|15||INR 46,351||INR 33,43,111|
|20||INR 40,280||INR 46,67,118|
|25||INR 36,950||INR 60,84,868|
|30||INR 34,961||INR 75,85,861|
Home Loan EMI Details for INR 75 lakhs
|Tenure (In Years)||EMI @7.50% Interest Rate||Total Interest Outgo|
|10||INR 89,026||INR 31,83,159|
|15||INR 69,526||INR 50,14,667|
|20||INR 60,419||INR 70,00,667|
|25||INR 55,424||INR 91,27,302|
|30||INR 52,441||INR 1,13,78,792|
Home Loan EMI Details for INR 1 Crore
|Tenure (In Years)||EMI @7.85% Interest Rate||Total Interest Outgo|
|10||INR 1,20,536||INR 44,64,374|
|15||INR 94,701||INR 70,46,230|
|20||INR 82,713||INR 98,51,095|
|25||INR 76,191||INR 1,28,57,179|
|30||INR 72,333||INR 1,60,40,056|
What is the Formula that Home Loan EMI Calculator uses?
The Home loan EMI Calculator used the following formula to get you an accurate result about the EMI amount.
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
EMI= Equated Monthly Installments
P= Principal Amount
R= Rate of Interest
N= Number of Monthly Installments
Details that You will Need to Use the Home Loan EMI Calculator
As we said before that a calculator needs a certain set of inputs to give the desired output. Similarly, the home loan EMI calculator also needs three basic inputs to get the EMI amount. You can have a detailed look at these details mentioned below.
Required Loan Amount: When you decide to opt for a home loan from any lender, you settle on an amount that suits both your repayment capability and also, financial state. You can not choose an amount way beyond your reach, otherwise, it may be difficult for you to repay it every month because EMI consists of a substantial part of your principal. And the higher the loan amount will be, the higher will be the EMI amount and vice- versa. So it’s important to choose the loan amount with the utmost care and only what you need.
Rate of Interest: The second and most important thing that you have to feed in the calculator is the rate of the interest charged on your loan amount. Several lenders charge different rates of interest to different individuals according to the loan type and individual’s profile. You also need to remember that the one thing that can have the biggest impact on your EMI is the rate of interest on your loan amount. So it’s important to compare the interest rates offered by different lenders and opt for only that one which is best for you.
Tenure: If you’re wondering about what this term tenure is, then let me tell you that it indicates the number of months chosen by you to repay the loan amount. A home loan is usually a hefty amount, so generally, individuals opt for a longer tenure in order to repay it. But you should also remember that opting for a longer tenure would cost you more interest amount. So, it’s important that you choose this period according to your repayment capability and financial needs. Some of the lenders even let you take the loan for a period of 30 years.
As soon as you feed all these details into the Home Loan EMI calculator, it will give you the EMI amount as well as the interest amount levied during your loan tenure and total payable amount. The best thing about this EMI calculator is its endless flexibility in nature by which you can check your EMI amount by feeding different values into it till the time you get a satisfactory result which aligns perfectly with your personal requirements.
Importance of EMI Calculation before Opting for a Home Loan
With all these talks of EMI calculation going around, you must be thinking of why is there a need of having an EMI calculation before you decide to opt for a home loan?
As you know the home loan is not a cheap sum of money and your dream home is on the stake, you cannot take any chances while preparing for it. And EMI calculation is a significant part of your preparation. This EMI will be a large part of your monthly income that you will you have to put aside every month. Without any proper planning and execution regarding the EMI, it may be possible that you fail to prepare for it. This is where Home Loan EMI Calculator comes handy. It gives you a fair chance to have an early estimate about the amount that you will pay every month towards loan repayment.
With the help of the EMI Calculator, you can have an early assessment of the EMI amount, making you both financially and mentally ready for that part of your monthly income that will go towards the EMI payment. When you have a definite amount, you can cut out your unnecessary expenses and instead, make that money useful in paying the EMI.
Also, with the EMI calculator at your disposal, you can compare the EMI amount with different values of interest rate and loan amount provided by different lenders and settle on that amount which is best for your financial goals. This is why Home Loan EMI Calculator holds prominence before opting for a home loan.
How Much EMI Can You Afford?
You are a better judge of your budget and can assess the EMI you can afford. Lenders won’t find it a problem disbursing you the loan amount that keeps the EMI to around 50%-60% of your net monthly income (NMI). But if you can pay more in down payment than what’s required, do that to reduce the loan amount as well as the EMI/NMI ratio. This will be of great help when you face lesser than expected growth in your income. Also, inflation rises with time, so the lower EMI will come to your budget then.
Plus, when you are about ten years away from getting retired, it won’t be bad to go for part payment, if not a full prepayment. Because as you grow older, there won’t be many companies looking to hire you. The demand for skilled and experienced professionals will always be there. But they also need to be young to survive in this intensely competitive corporate ecosystem that demands physical and mental fitness of the highest order. Coming back to the part payment, it will reduce the EMI considerably. The below example will surely add substance to our point, take a look.
Example – You take a home loan of INR 50 lakh at 8.50% at the age of 40 years. The loan will run for 20 years, so it will mature by your retirement time i.e. 60 years (assumed). If you use the home loan EMI calculator, the EMI comes as INR 43,391, which is less than 50% of your NMI i.e. INR 90,000. If the loan continues this way till maturity, you’ll end up paying interest worth INR 54,13,879. So when you attain 50 years of age, the loan outstanding would reduce to around INR 34,99,691. By that time, you must have paid interest worth INR 37,06,63.
If you can pay an amount of around INR 5 lakh by that time, the outstanding amount will fall to INR 29,99,691. This will reduce the EMI to INR 37,192, reducing the monthly obligation by INR 6,199. The interest payable for the remaining course will be around INR 14,63,334, which when added to INR 37,06,631, the interest you are believed to have paid by the time you hit 50, gives rise to a sum of INR 51,69,965. This is around INR 2,43,914 less than the amount you would end up paying if you go as per the original loan schedule.
Benefits of Using the Home Loan EMI Calculator
Simplicity and Speed: You don’t need different values filled with complexities to use the Home Loan EMI calculator, in fact there are only three simple details that you need. We have mentioned these details above. Simplicity is the best feature of it and you will get the results in a flash which makes the whole process of EMI calculation smooth and hassle-free. Did we mention the time that you can save by using the calculator? Well, yes, you can because of the speedy part it possess.
Finance Management: When you have a clear assessment of the EMI amount, you will be better prepared to make some changes in your monthly spending so that you can set aside that EMI amount from your monthly income. The EMI calculator helps you in financially empowering you by giving you the authentic results.
Endless Flexibility: You can use the calculator for as many times as you want with different values till the time you got the perfect combination of right EMI and tenure aligning perfectly with your monthly income. This endless flexible feature of EMI calculator makes it a must use before finalizing the loan amount. Remember that choosing a short tenure will fetch the higher EMIs and vice versa.
Amortization Table: The calculator doesn’t only give you the EMI amount but also the amortization table by which you can have an estimate about the principal and interest amount at different points of your loan tenure. With the help of this, you can also cross check with the bank if you want to have an estimation about the payments that you have to make.
Home Loan EMI Waiver Plans
Lenders come with a home loan EMI waiver to lure borrowers into buying a home. As the name suggests, the EMI waiver means the lender won’t deduct the installment for the period the offer will be there. But will you get it straight away? Maybe not, judging from the EMI waiver offer of Axis Bank wherein you get the waiver after 4th, 8th and 12th year of the repayment tenure. Is it subject to some eligibility? Well, the lender might not notify the same. But the offer will most likely be subject to your repayment track and credit score. If you have paid EMIs regularly, the lender will have no problem in fulfilling the promise of an EMI waiver. Whereas, a credit history plagued by payment defaults and delays can make lenders put a stop to the EMI waiver offer.
Shall You Use the Home Loan EMI Calculator When Doing a Balance Transfer or Prepayment?
A home loan EMI calculator is also important when it comes to changing the pattern of a loan via refinancing. Doesn’t matter whether you are looking for a home loan balance transfer or a part payment, a calculator can help you achieve the optimum result with either of the two. With a balance transfer, you get the opportunity to transfer the existing loan balance at a lower rate of interest.
If you check the function of the calculator carefully, you will see the outstanding loan balance at different points of time. You can also check the estimated repayment against principal and interest over the years. The interest payment will be more than the principal portion for a little more than half the length of the loan. So, the balance transfer will yield you more when you do before the loan reaches the halfway mark. You can check the effect in the EMI calculator. Let’s consider an example to understand the benefits of the calculator better with respect to a balance transfer.
Example – Ram Gupta and Sohan Sharma apply for a home loan worth INR 50 lakh at an interest rate of 7.80% per annum for 20 Years. If Ram does a balance transfer after 7 years of paying the loan EMIs and Sohan does it after 14 years, how will it reflect on their repayment assuming the same 7.20% interest rate for both on a balance transfer?
|Loan Aspects||Repayment Estimates for Ram||Repayment Estimates for Sohan|
|Original Loan Amount||INR 50,00,000||INR 50,00,000|
|EMI Payable @7.80%||INR 41,202||INR 41,202|
|Interest Payable @7.80% for 20 Years||INR 48,88,432||INR 48,88,432|
|Outstanding Loan Balance After 7 Years||INR 40,31,708||-|
|Outstanding Loan Balance After 14 Years||-||INR 23,63,065|
|Interest to be Paid Till 7 Years @7.80%||INR 24,92,660||-|
|Interest to be Paid Till 14 Years @7.80%||-||INR 42,84,968|
|New EMI @7.20% for 13 Years||INR 39,871||-|
|Interest Outgo @7.20% for 13 Years||INR 21,88,217||-|
|New EMI @7.20% for 6 Years||-||INR 40,515|
|Interest Outgo @7.20% for 6 Years||-||INR 5,54,032|
|Interest to be Paid @7.80% for 7 Years + Interest to be Paid @7.20% for 13 Years||INR 46,80,877||-|
|Interest to be Paid @7.80% for 14 Years + Interest to be Paid @7.20% for 6 Years||-||INR 48,39,000|
|Savings in Terms of EMI||INR 1,331 (41,202-39,871||INR 687 (41,202-40,515)|
|Savings in Terms of Interest||INR 2,07,555||INR 49,432|
From the table, you can see how doing a balance before the halfway mark fetches you more savings on a home loan balance transfer.
After a balance transfer, you can now see the role of Home Loan EMI Calculator in prepayment, which means the payment of the outstanding balance in full or parts. The best part is that a home loan prepayment comes without any charges if the loan is on a floating basis. With both full and part prepayment, the interest liability reduces significantly over time. You can thus check the EMI calculator to check the reduction of interest payments. Let’s check it with an example
Example – You want to apply for a home loan of INR 55 lakh for 20 years. At the present interest rate scenario, you can get this amount at around 7.50% per annum. If you make a part payment of 10 lakh after 10 years, how much will you save on your interest payments? You will have two options after part payment – whether to pay the same EMI or a lower EMI. Check out the table below to decide.
|Repayment Aspects||Repayment Estimates When Paying the Same EMI After Part Payment||Repayment Estimates When Paying the Reduced EMI After Part Payment|
|Original Loan Amount||INR 55,00,000||INR 55,00,000|
|EMI Payable @7.50%||INR 44,308||INR 44,308|
|Interest Outgo @7.50% Over 20 Years||INR 51,33,830||INR 51,33,830|
|Interest to be Paid Till 10 Years @7.50%||INR 35,49,599||INR 35,49,599|
|Outstanding Balance After 10 Years||INR 37,32,684||INR 37,32,684|
|Part Payment Amount||INR 10,00,000||INR 10,00,000|
|Outstanding Loan Balance After Part Payment||INR 27,32,684||INR 27,32,684|
|EMI After Part Payment||INR 44,308||INR 32,437|
|Interest Payable After Part Payment||INR 7,28,363||INR 11,59,809|
|Interest to be Paid Till 10 Years + Interest Payable After Part Payment||INR 42,77,962||INR 47,09,408|
|Savings||INR 8,55,868 (51,33,830-42,77,962)||INR 4,24,422 (51,33,830-47,09,408)|
From the table, you can see the savings is more when you pay the same EMI after part payment. The overall loan tenure reduces on paying the same EMI post the part payment. In this case, the loan will run for 16 years and 6 months. It means the loan will run for another 6 years and 6 months when you pay the same EMI after making the part payment.
How to Restructure Your Home Loan Using the Calculator?
If your income has been affected by the COVID-19 pandemic, you could restructure your existing home loan and ensure payments on time. The Reserve Bank of India (RBI) has allowed banks to restructure loans for people facing financial hardships amid the pandemic.
As part of the restructuring plan, your overall tenure could increase by a maximum of 2 years. That will ensure a lower EMI but the interest payment could rise substantially. Also, the rate of interest will be slightly higher when restructuring the loan. That’s why you need to use this option carefully and not randomly. This is where the Home Loan EMI Calculator can come in handy for you! We will show the calculations of a restructured home loan for different tenures so that you can choose the right option. Let’s consider an example to understand the same.
Example – Your home loan worth INR 50 lakh has been running at 8% per annum for the last two years. The loan is taken for 20 years. Since your income has come down by 15% due to the pandemic, you are struggling to pay the EMI of INR 41,822. The outstanding loan balance now stands at INR 47,79,861, and you have paid interest worth INR 7,83,590 so far. So, what will happen to your repayment if you extend the tenure by 2 years, 1 year and 6 months at an increased interest rate of 8.10% per annum? Let’s calculate!
|Repayment Aspects||Repayment Estimates When You Extend the Tenure by 2 Years (In INR)||Repayment Estimates When You Extend the Tenure by 1 Year (In INR)||Repayment Estimates When You Extend the Tenure by 6 Months (In INR)|
|Interest Payable Including the Interest Paid Till Now||56,70.608||53,83,153||52,41,016|
Note – Calculations are made for illustration purposes only.
While the monthly obligation i.e EMI is the least when you extend the tenure by 2 years, the interest outgo will be much more in that case. So, you can choose to extend the tenure by 6 months to a year. However, you are free to make your choice! If choosing the 2-year option ensures timely payments and helps meet your other needs, go with that option. Since the loan will carry for a long time, you could save and part pay a lump sum amount later to reduce your overall interest payments. We have illustrated the benefits of home loan part payment above. Check that again and act accordingly.
A Few More Details Regarding Home Loan Restructuring Benefits
You just need a standard loan account as on March 1, 2020. Different banks have set different last dates for restructuring home loans. However, the last date can’t extend beyond December 31, 2020. So, check with your lender about the date within which restructuring is possible.