Home Loan EMI Calculator

Highlights

  • See your EMI on home loans to choose the best dealer.
  • Check your payments in advance with EMI calculator.

A home loan EMI calculator is an online tool used to calculate the monthly installment on the loan. This helps in knowing the payments in advance and hence make the right move according to the repayment capacity. The calculator takes into account the basic details like the loan amount, the interest rate, and the tenure.

The interest rate offered by the lender is the annual rate, the calculator converts it into the monthly rate of interest to give the results. Other than the EMI, the total interest outgo and the total amount (interest + principal) is also shown. Here is an example for your reference.

EMI Calculator for Home Loan
Loan Amount (₹)
Interest Rate (%)
Tenure(year)
Results
Loan Amount
Interest Rate
Tenure(Months)
Monthly Instalment (EMI)
Total Interest Amount
Total Amount (Principal + Interest)
Year Principal Interest Balance Amount

Home Loan EMIs for different Loan Amounts

Here are some examples showing monthly installments (EMI) for various loan amounts taken for different tenures at the assumed home loan interest rate of 8.35% per annum.

10 Lakh Home Loan EMI Details

Tenure (in years)Monthly Installment (EMI in ₹)Total Interest Outgo (₹)
520,4442,26,659
1012,3184,78,219
159,7607,56,740
208,58410,60,047
257,95113,85,432
307,58317,29,910

15 Lakh Home Loan EMI Details

Tenure (in years)Monthly Installment (EMI in ₹)Total Interest Outgo (₹)
530,6663,39,988
1018,4787,17,328
1514,64011,35,110
2012,87515,90,071
2511,92720,78,148
3011,37525,94,865

20 Lakh Home Loan EMI Details

Tenure (in years)Monthly Installment (EMI in ₹)Total Interest Outgo (₹)
540,8894,53,318
1024,6379,56,437
1519,51915,13,480
2017,16721,20,094
2515,90327,70,864
3015,16634,59,819

25 Lakh Home Loan EMI Details

Tenure (in years)Monthly Installment (EMI in ₹)Total Interest Outgo (₹)
551,1115,66,647
1030,79611,95,547
1524,39918,91,851
2021,45926,50,118
2519,87934,63,580
3018,95843,24,774

30 Lakh Home Loan EMI Details

Tenure (in years)Monthly Installment (EMI in ₹)Total Interest Outgo (₹)
561,3336,79,976
1036,95514,34,656
1529,27922,70,221
2025,75131,80,141
2523,85441,56,295
3022,74951,89,729

Benefits of Home Loan EMI Calculator

  • Easy determination of EMI amount: The home loan EMI calculator is helpful in determining the EMI amount. Just by entering the loan amount, the rate of interest and the loan-term, you can check the payment details.
  • Saves time: The calculator saves the borrower’s time as the calculation is done within a few seconds.
  • Provides authentic results: The calculation of EMI through the calculator provides the genuine payment details.
  • Categorization of various finance charges: Banks and financial institutions offer the annual rate of interest and the other charges associated with the loan. The charges such as the processing fees plus GST and stamp duty are often missed but these are to be paid at the approval time. So, by knowing other payments, you are prepared to pay the rest of the amount as well.
  • Comparison of Loan Offers: You can use the calculator as many time as you want and compare different interest rates before you come to the conclusion. You can then choose the lowest home loan rates.
  • Ascertainment of loan tenure: The tenure of the loan can be decided once the EMI value is known to the borrower. It will help the borrower to choose various other combinations of available tenures and select the appropriate terms that accommodate his/her monthly income and budget. The shorter term means a higher EMI, while the longer term reduces the monthly installments paid towards home loan.
  • Easy Management of Loan: If you want to repay the loan and would like to know the payments he has to make, the calculator helps in formulating the decision in this regard.
  • Makes Validity in Information: For negotiating a home loan deal with the bank, it is essential to verify the schedule provided by the bank. The borrowers can use the EMI calculator for getting the amortization table which can also help them to cross-check with the bank and get it clarified.

What are the parameters based on which EMI is calculated?

The following are the parameters on which home loan EMI is calculated:

  • Loan Amount: The amount of money borrowed for the purpose of buying a house is called home loan amount. The borrowed amount depends upon the cost of the property and the repayment capacity of the borrower. One should remember that a lender can only give 80% of the property value as loan. This is called the principal amount of the loan and the interest rate applied on it. The final amount(calculated after applying the interest rate) is then divided equally across the tenure of the loan. The borrower can enter the amount which needs to be borrowed into the EMI calculator.
  • Interest Rate: This is the rate which is levied on the lending amount to the borrower. The interest rates for home loan vary from one financial institution to another. It is essential for everyone to check the home loan interest rate before applying. Interest rates are divided into two categories-fixed rates and floating rate. In case of fixed interest rate, the interest rate remains unchanged throughout the loan tenure and all EMIs remain equal. However, in the case of floating interest rate, the rates vary with any change in the base rate and accordingly, the EMIs fluctuate.
  • Tenure: The time duration taken by the borrower for repayment of the loan is known as tenure. Most of the home loans come with flexible loan tenures. In general, a home loan tenure varies from 20 years to 30 years. The borrower is required to choose a loan tenure as per their requirement, but always remember that longer the tenure, the more interest will have to be paid on the sanctioned home loan.

EMI Calculation Formula

The calculation in the EMI calculator is done through the below-given formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where,
EMI= Equated Monthly Installment
P= Principal Loan Amount
R= Monthly Interest Rate
N= Number of Monthly Installments

What is an Amortization?

Amortization is the process of reduction in the value of an asset or the balance of a home loan by a specific periodic amount. At the time of EMI payment, there is some portion of principal amount which also needs to be paid. The principal is the actual amount of loan which the borrower has to pay. However, by making regular periodic payments, the principal tends to decrease and gradually comes to zero.

What is an Amortization Schedule?

An amortization schedule is a tabular display of periodic payments made towards a home loan. It consistently shows the loan repayment process in a tabular form. The percentage of EMI which goes towards the interest component along with the principal can be ascertained by an amortization schedule. Every EMI paid is divided between interest and principal amount of the loan. But, the exact amount going towards the principal component each time differs and the remaining amount goes to the interest component. At the beginning of the loan tenure, a substantial amount in the form of interest. As the home loan matures, a higher portion of EMI goes towards the principal. The home loan calculator is not scheduled to provide you with the bank’s amortization schedule.

RBI has directed banks to link older home loans to the current MCLR from April 1, 2018.  As a result of which, the home loan borrowers will now be able to pay lower EMIs.

How much Tax are you saving on Home Loans?

A person willing to take home loan can also look to save taxes on his/her income. Income tax deductions can also be claimed by an applicant against principal and interest payments that are made towards repayment of home loans. In the housing loan tax savings calculator, just type the following details:

  • Loan Amount
  • Interest Rate
  • Loan Tenure
  • Loan Start Date
  • Gross Annual Income

The type and existing deduction under Section-80C/D of the income tax is made available against repayment of Home Loan, which is governed by the applicable Income Tax Laws of Government of India. The result derived from the calculator will help an applicant know about how much taxes have been saved as repayment towards home loan.

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Home Loan Interest Rates April 2018
State Bank of India/SBI 8.35% - 8.90%
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EMI Calculator