EMI Calculator for Home Loan

Why Should You Use EMI Calculator Before Applying For A Loan?

Are the huge monthly instalments and high-interest rates with a loan worrying you? Do not worry, as there are financial institutions that allow you to negotiate terms and finalise deals that are pocket friendly. However, how would you determine which lender best suits your needs? It’s time to calculate EMIs and the total interest you would pay, along with the principal amount. You can do the calculations manually but isn’t it a daunting task? A slight calculation mistake can give you the wrong idea and endanger your future plans. So, get precise, choose a housing loan EMI calculator.

Why Should You Use A Housing Loan EMI Calculator? 

Calculate your estimated EMI using an online calculator before taking a loan to clear all dilemmas about the loan decision. It allows you to consider the broader picture of the scenario. Here are the key reasons why you should use an EMI calculator before taking a land mortgage loan or any other loan.

1) Quicker Access to Accurate Details 

The Housing Loan EMI calculator provides error-free calculations within seconds. Moreover, these free online tools are easy to access and simple to use. 

2) Know the Affordability 

With data on the amount of interest and EMI you would pay each month, you can determine whether the amount suits your present monthly income. If it doesn’t, you can opt for a smaller loan amount.

3) Risk Evaluation

With all the relevant information, evaluating the risk is easier before actually taking it. A precise calculation helps you escape the sorrow of unpaid or delayed debt clearance. 

4) Assists with Financial Planning 

The EMI calculators help you understand and get comfortable with the idea that a specific, most significant portion of your monthly income will not be available for personal use. Rather it would go off to repay your loan. Therefore, you must plan your finances after deducting the EMI from your monthly income. You can plan the necessary changes to accommodate the monthly installments comfortably. 

5) Easier to Choose Lenders

You can quickly check what amount you will have to pay to different loan providers as per their interest rates and tenures. This comparison helps you choose which lender is most suitable for taking a loan. 

Also Read: Follow 8 Ways To Avail Tax Benefits On Home Loans

How Would You Calculate EMI without EMI Calculator?

The process can be long and tedious, but if you do not have internet access, you can calculate the EMI using the following formula:

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

The following example will help you understand how to proceed with the calculations. Suppose you borrow a sum of ₹1 crore from a bank for ten years. The bank charges you a 10% per annum interest rate. The details for your loan will be as follows:

Principal or Loan Amount (P) = 1,00,00,000

Monthly Interest Rate (R) = 10/12 = 0.833% = 0.008331250 

Time (N) = 10 years = 120 months

The EMI formula is as follows: 

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

Substituting the values in the formula:

EMI = [10000000 x 0.008331250 x (1 + 0.008331250)120] / [(1 + 0.008331250)120 – 1]

EMI = EMI = ₹ 132,151

Therefore, according to the EMI calculation, you will have to pay ₹ 132,151 each month for ten consecutive years to clear off your loan. 

Also Read: How Much Home Loan Can I Avail on Rs. 40,000 Salary?

When estimating your budget, you can round off the value to the nearest hundred. 


Calculating EMI is very simple with an online EMI calculator. This tool asks you to enter your loan amount (principal), the interest rate, and the loan tenure. Once you fill in the details, you will instantly see the exact amount you will have to pay each month for the entire tenure. This amount will include the interest and a portion of the principal. Use your EMI calculator to reach better decisions and make your dream a reality.