The Importance of Home Loan EMI Calculators

Buying a dream house of your own might be a daunting task for you with so many challenges. Choosing a house for yourself involves many tasks to be done before you finalise your decision of owning a home. It also requires in-depth financial planning for yourself when you plan to purchase a house of your own. But need not to worry now as one may have a bit relief by using home loan EMI calculators which are available online and using which home loan borrowers might know about the amount on their home loan EMIs they need to pay to their lender from whom the loan has been taken.

How to calculate your EMIs Using an Online Home Loan EMI Calculator:

The formula to calculate EMI is:

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1] 

Where, P= Principal loan amount, 
R= Rate of interest,
n= Number of monthly instalments.

For example,

Assuming, P= Rs 8 lakh R= 10 percent per annum= 10/12= 0.83 per month, N= 84 months
EMI=((800000*0.83 /100*(1+0.83 /100)^84/((1+0.83 /100)^84-1))) = Rs. 13,281

The home loan EMI calculators are different from other types of loans. Thus,  when you are planning to apply for a home loan, decide the need and make use of an available online loan aggregators platform to check your home loan eligibility and EMI amount and accordingly apply for the loan. Though using this online home loan EMI calculator, there could a be a slight variation on the EMI amount from individual to individual, EMI calculators will help you in ascertaining the approximate figures of the monthly installments you need to pay.

What are the factors affecting Home Loan EMI?

The below mentioned are the three main factors that help the home loan borrower to decide on what can be your home loan EMI pertaining to the loan amount you have applied.

1) Loan amount – This is the amount which you will be borrowing with your lender by applying the loan subject to some specific terms and conditions. Your home loan amount depends upon the value of the property. The higher the loan amount, the higher will be your home loan EMI.

2) The rate of interest – This is the interest charged on the loan amount which you have borrowed. In the early years of repayment, the interest component of your home loan will be a slightly higher and as the tenure comes to an end, interest component reduces and principal component increases. Lower the interest rate on your home loan, lower will be your EMI.

3) Loan Tenure – As long as the home loan tenure will be, lower be your EMI. Before applying for a home loan, borrowers should plan well in advance while deciding the home loan tenure. The tenure should be long enough so that one may easily repay back the loan amount applied.

Why Should You Calculate the EMI on your Home Loan?

Calculating the EMIs on your home loan has several benefits. Have a look at some of the benefits below:

1) Home loan EMI Calculators help the borrower to determine the amount of home loan to be borrowed
2) Assists in checking the home loan eligibility and interest percentage
3) It is essential to calculate the home loan tenure
4) To check whether you can afford to pay your home loan back or not
5) To decide between a fixed and floating rate of interest on your home loan
6) Getting a home loan will be much easier and faster if EMI amount has been decided beforehand


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  1. A home loan is an amount of money that an individual (borrower) borrows from a bank or financial company or money lending company at a certain rate of Intrest to be paid on EMI based every month. In order to sanction loan, the lending company or financial company takes the Individual’s property as a security purpose. The property can be either commercial or personal in nature. In a home mortgage (home loans), the borrower ( the individual who are getting the loan from the lender) transfers the title to the lender on the condition that the title will be given back to the owner once the payment has been made and all other terms of the mortgage have been met. When the borrower cannot pay the dues, the lender possesses all the legal rights to recover the pending loan amount by sale of the property.

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