Home Loan EMI Calculator

EMI stands for Equated Monthly Installment which is a fixed amount a borrower has to pay back to the lender each month until their loan tenure ends.

Paisabytes’ home loan EMI calculator is the easiest way to calculate your Home Loan EMI. It helps you to make informed and wise decisions for buying the house of your dreams.

You can use home loan EMI calculator to plan your cash flows in order to service the home loan. All you have to do is to put the loan amount, rate of interest, and tenure.

How to Calculate Home Loan EMI?

First-time financiers and borrowers may find calculating home loan EMI’s quite daunting!

You have two methods to calculate your home loan EMI, those are:

• Manual Calculations – The formula for home loan EMI calculation is:
  E = [P x R x (1+R) ^N] / [(1+R) ^N-1]
  
  where
  E= Home loan EMI amount
  P= Principal Amount: It is the amount that you borrow from the lender. Your home loan EMI is directly proportional to the principal amount; the lesser the principal, the lesser will be the EMI amount.
  R= Rate of Interest: It is the rate at which the lender offers you the loan. EMI is also directly proportional to the Rate of Interest.
  N= Loan tenure: It is the time period within which you are supposed to repay your loan. EMI is inversely proportional to tenure; the more tenure, the lesser will be the EMI amount.
  
  
• Home Loan EMI Calculator by Paisabytes – You can easily skip the above tedious task by using our home loan EMI calculator to quick results with absolute accuracy. All you have to do is to put the home loan amount, rate of interest, and tenure. It does all the calculations for you! 

What is the EMI for a Home Loan?

EMI for a home loan comprises repaying the principal amount along with the outstanding interest amount of your home loan. If your loan tenure is longer (maximum tenure being 30 years) your EMI would be significantly lower.

Let’s try to understand the relationship between loan amounts and loan tenure a little bit better with the help of an example (assuming the rate of interest is 10%):

What is the Home Loan Amortization Schedule?

The term ‘amortization’ is the process of repaying the entire loan amount in a specific period of time in parts through regular payments. The Home Loan Amortization Schedule comprises the complete track of all the payments of home loans done periodically.

Let us how an amortization schedule actually works with an example, consider the following:

Loan Amount = ₹100000

Balance After Cushion Period = ₹ 105105

Period less cushion period in years = ₹ 1.5

Monthly Payment = ₹ 6312

Total Interest = ₹ 8516

Total Payment = ₹ 113622

So, the amortization schedule would look something like this: