May 18, 2024

The Enterprise News

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How Do I Calculate The Right EMI Amount With The Home Loan EMI Calculator?

What is a Home Loan EMI Calculator and Home Loan EMI?

Home Loan EMI Calculator is something available online which helps you calculate the monthly EMIs payable towards your home loan. The EMI includes the repayment of the principal amount and payment of the interest on the outstanding amount. Home Loan EMI Calculator is an easy-to-use financial planning tool for home buyers that helps them plan their finances accordingly.

EMI stands for Equated Monthly Instalment, which is a fixed amount of money that is paid by the borrower to the lender every month until the loan is fully repaid. The EMI comprises both the principal amount and the interest charged on the outstanding amount of the home loan. The longer the loan tenure, the lower the EMI amount, but the higher the total interest paid over the loan’s lifetime. 

How is EMI Calculated?

EMI is a fixed amount that a borrower has to pay to the lender every month until the loan is fully repaid. The EMI payment includes both the principal and interest. The amount of the EMI depends on the principal amount, the loan tenure, and the interest rate charged.

The formula for calculating EMI is

P x R x (1+R)^N / [(1+R)^N-1]

In this formula, P is the principal loan amount, N is the loan tenure in months, and R is the monthly interest rate. 

For example, if a person has taken a loan of Rs. 10,00,000 at an annual interest rate of 7.2% for 120 months (10 years), then his EMI will be Rs. 11,714. The total amount payable will be Rs. 14,05,703, which includes the principal loan amount of Rs. 10,00,000 and the interest amount of Rs. 4,05,703.

Calculating EMI manually using the formula can be confusing and time consuming. However, an EMI calculator can help you estimate your loan EMI with ease. All you need to do is enter the loan amount, tenure, and interest rate, and the calculator will provide you with the EMI.

Can I change my home loan details in the EMI calculator?

Yes, you can change your home loan details using most EMI calculators. These calculators are designed to be flexible and allow you to input different scenarios. As mentioned previously, they usually ask for three main variables:

  • Loan amount
  • Interest rate
  • Loan tenure

By changing any of these values, you can see how it affects your EMI. It helps you understand how much your monthly payment would be under different loan conditions.

For example, you could try increasing the loan amount to see how much higher your EMI would be, or you could try extending the loan tenure to see if a lower EMI would fit better in your budget.


A home loan EMI calculator is an essential tool that helps you calculate your monthly payments towards your home loan. By using this calculator, you can plan your finances accordingly and make informed decisions about buying a new house. The EMI calculator takes into account the loan amount, interest rate, and tenure to provide you with an accurate EMI amount. It is easy to use and flexible, allowing you to change your home loan details to see how it affects your monthly payments. With the help of a home loan EMI calculator, you can ensure that your home loan remains comfortable and fits well within your budget.

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