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A Home Loan EMI calculator is an easy-to-use online tool that provides an estimate of the monthly EMIs. Read this post, to know more about this calculator and how it works.

Even before applying for a Home Loan, it is essential for a borrower to decipher and conclude as to whether or not they can afford the monthly EMIs comfortably. As manual calculations can be time-consuming and error-prone, a simpler alternative is to use an EMI calculator for a Home Loan.

Here’s a detailed overview of what this online calculator is and how it works?

What is a Home Loan EMI Calculator?

Home Loans are taken for a tenure ranging between 15 - 30 years. Throughout this duration, a borrower must pay their monthly EMIs to the lender. Based on factors like the Home Loan amount, interest rate and loan tenure, the EMI calculator provides an estimate of the monthly EMIs.

The result of the calculation makes it easier for the borrowers to determine whether or not they can comfortably afford the monthly Home Loan EMIs, along with their basic expenses, existing debts, etc.

How does an EMI Calculator work?

The mathematical formula used by the housing loan EMI calculator is as follows:

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


P is the principal loan amount.

R is the monthly Home Loan interest rate.

N is the loan tenure in months.


Let us assume that a Home Loan of Rs lakh was taken for a tenure of years, at % interest rate. Here,


P= 50,00,000

R= (9/12/100 for calculating the monthly interest rate)

N= 240 ( 20 years= 240 months)

So, EMI= [50,00,000 x 0.0075 x (1+0.0075)^240] / [(1+0.0075)^240-1]

EMI= Rs 44,986.

What are the benefits of using an Online EMI Calculator?

Here are some of the top reasons to use a housing loan calculator:

Manual calculations can be confusing and time-consuming. By simply entering a few values, the online calculator provides instant and accurate results

You can also adjust the inputs, to understand better how the EMI amount fluctuates based on the loan amount, interest rate and loan tenure

When you know the EMI amount, it helps you make an informed and confident home buying decision.

How does one use the Home Loan EMI calculator?

Using an online EMI calculator is a simple and quick process. Follow these steps:

  • Enter the loan amount you’d like to borrow
  • Enter the applicable interest rate
  • Input the loan tenure.

After entering these values, click on the ‘Calculate’ button and the online tool will instantly provide the monthly EMI amount.

How can you reduce the Monthly EMI amount?

There are  a variety of ways to get the Home Loan EMI amount reduced, to make it more affordable for you. Here are some of the top recommendations:

  • Reduce the Home Loan amount by paying a bigger down-payment
  • Increasing the loan tenure is also an effective way to reduce the EMI amount
  • If you fulfil the eligibility criteria of the lender, you can also try to negotiate a better interest rate.
  • If you are already repaying a Home Loan, you can consider using the balance transfer facility to switch to another lender offering Home Loans at a lower interest rate. You can also use a Home Loan balance transfer calculator to know your actual savings, by making the switch.

Making a confident Home-Buying decision

To confirm affordability is the first step to ensure that you can comfortably pay the monthly EMIs of your Home Loan. The online calculator helps you instantly identify the approximate EMI amount based on your inputs for an informed decision-making.

Most top lenders in the country have this online tool on their websites. Before applying for a Home Loan, ensure that you use the calculator, as it will help figure out the right combination of the loan amount, tenure and interest rate most suitable for your financial position.

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