How to calculate home loan EMI?

Home loan EMI calculation is based on various factors such as, Principal Loan Amount, Tenure of the loan, and Interest rate. Now, how to calculate Home Loan EMI also depends on your lender. Yes, that is right. Usually, when you apply for a home loan or just want to check EMI options for the loan amount, banks give you an option to check for an estimated value via their Home Loan EMI calculators. You can calculate monthly EMI for home loan by visiting the following links:

1. HDFC Bank

2. Axis Bank

3. ICICI Bank

4. Punjab National Bank

5. SBI

How to calculate home loan EMI formula (MS Excel)

EMI = [P x (R/100) x (1+R/100) ^n] / [(1+R/100)^ n-1]

where, P is Principal loan amount, R is Rate of interest per month, n is Number of monthly instalments.

An example to help you calculate monthly EMI for home loan is as follows:

Let us assume that P is 30 lakhs, R is 9% per annum N is 180 months

EMI = [3000000 x (0.75/100) x (1+0.75/100) ^ 180] / [(1+0.75/100) ^ 180-1)] = 30,428

Therefore, monthly EMI would be Rs. 30, 428.

To know, how to calculate home loan EMI, you pay every month, you need three key inputs:

1. Principal (P): the loan amount you borrow.

2. Rate of interest (annual) converted to monthly rate: that is the annual rate divided by 12 and expressed in decimal (for example, 10% p.a. becomes 10/12/100 = 0.008333 monthly).

3. Tenure (N): the total number of monthly payments you’ll make (loan tenure in years × 12).

Formula: EMI = P×r×(1+r)^N / (1+r)^N−1

Where:

1. P = principal loan amount

2. r = monthly interest rate

3. N = total number of months (loan tenure × 12)

Example: You take a loan of Rs. 50,00,000 (50 lakh) with an annual interest rate of 8.55% for tenure 20 years (so N = 20×12 = 240 months).

Convert 8.55% annual rate to monthly rate:

1. r = 8.55 / 12 / 100 = 0.007125

Then plug into the formula:

EMI = [50,00,000 × 0.007125 × (1 + 0.007125)^240] ÷ [(1 + 0.007125)^240 − 1]

Calculation gives roughly Rs. 43,550 per month.

The EMI remains fixed if the interest rate is fixed. If it's floating, EMI can change when rate changes.

Longer tenure → lower EMI but more total interest paid. Shorter tenure → higher EMI per month, but less interest overall. Small changes in interest rate or tenure can have large effects on EMI. 

That’s all about how to calculate monthly EMI for home loan. I hope this helps!

Get Home Loan at Lowest Interest Rate, Max Tenure with NoBroker Home Loan Service

Do you know how much monthly EMI for home loan would be? Generally speaking, your house loan interest rate should not be greater than 35–40% of your income. The main reason for this is that you will need to pay for several other expenses. 

How to Calculate EMI for Home Loan Formula?

EMI = P x R x [{(1 + R)^N} / {1 – (1+R)^N}] is the formula.

Where;

• P represents the primary loan.

• Your monthly interest rate is represented by R = (annual rate/12)/100.

• N is the total number of months that the loan will be in effect.

How to Calculate EMI for Home Loan with Example?

If an individual availing Rs. 10,000,000 loan with a 7.2% annual interest rate over a 120-month (10-year) term, his equal monthly instalments (EMI) will be computed as follows:

EMI is calculated as follows: Rs. 10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = Rs. 11,714.

It will cost Rs. 11,714 * 120 = Rs. 14,05,703 in total. The loan sum of Rs. 10,000,00 is the principal, while Rs. 4,05,703 is the interest.

It can be time-consuming to manually calculate the EMI using the formula, so you can use the

. There you will have to enter, 

• Loan Amount

• Rate of Interest (P.A)

• Loan Tenure

To get the estimated EMI that you will be required to pay.

Read More:

Last month, my sister was

planning to buy a house. I knew she had saved enough to make the downpayment on the house but she still wanted to know

how can we calculate home loan EMI.

She decided to calculate her home loan EMI before she started house shopping. 

How Home Loan Interest Rate is Calculated?

Let me tell you the formula she used.

EMI = (P * R * (1 + R)^N) / ((1 + R)^N - 1)

Where:

• P is the principal loan amount

• R is the monthly interest rate

• N is the loan term in months

They entered the following information into the formula:

• P = Rs. 50 lakhs (principal loan amount)

• R = 8% (monthly interest rate)

• N = 240 (loan term in months)

The EMI calculator calculated her monthly EMI to be Rs. 33,333.33.

It helped her understand how much her monthly repayments would be. It also helped them to budget for her home purchase.

Now that I have told you

how to calculate EMI amount for home loan, I will also give you so

me tips for calculating home loan EMI in India:

• Make sure you have accurate information about the principal loan amount, interest rate, and loan term.

• Use an EMI calculator to make the calculation easier.

• Compare EMI quotes from different lenders to get the best deal.

Now you know

how can we calculate home loan EMI.

The monthly EMI that you pay must be taken into account when applying for a house loan. The type of interest rate you chose, floating or fixed, the length of your mortgage, and the principal amount; are a few factors that are required while calculating your EMI. I recently calculated the housing loan EMI, so I can help you with your question "How to calculate EMI for housing loan?"

There are several online home loan EMI calculators that are widely available. I have personally used the NoBroker EMI Calculator, which I found immensely helpful. 

Hence, you can use it as well to check home loan EMI. 

While using the NoBroker EMI calculator, you will need to add 3 things,

• the loan amount

• Rate of interest

• loan tenure

All the EMI calculators available online, including the EMI calculator NoBroker employs a special formula to calculate the EMI amount, as indicated by the answers provided above.

NoBroker EMI calculator provides a clear grasp regarding, how to calculate EMI for housing loan? This aids in determining the maximum amount of the loan that can be obtained. Hence, understanding the EMI is essential for determining your eligibility for a house loan and properly organising your home-buying process.

Read more:

Buying a property requires a lot of finances and these days to realise their dream of owning a home, people opt for home loans. Many banks are offering home loans at attractive interest rates. But the real questions are how to calculate home loan EMI and what is the home loan EMI calculation formula. I am going to answer these two questions for you here.

Before telling you about home loan EMI calculation, I would like to highlight the factors that affect calculation of EMI.

There are three major factors affecting home loan EMI calculation, these are:

1. Amount of loan

2. Tenure of loan

3. Interest rate on EMI (fixed rate or floating rate)

The home loan EMI calculation is done on the basis of following formula:

EMI = [P x (R/100) x (1+R/100) ^n] / [(1+R/100)^ n-1]

Note that 

• P is Principal loan amount

• R is Rate of interest per month

• n is Number of monthly instalments.

Let us assume that P is Rs. 40 lakhs, R is 7.2% per annum N is 180 months

EMI = [4000000 x (0.6/100) x (1+0.6/100) ^ 180] / [(1+0.6/100) ^ 180-1)] = 36402

Hence, monthly EMI would be Rs. 36402.

I hope this was helpful.