The tenure of a home loan is the length of time over which you repay the loan, usually expressed in years or months. To know how to calculate tenure of home loan or calculate any other component of your home loan (EMI, interest, or principal), lenders use the standard EMI formula:
EMI = P×r×(1+r)^n÷ (1+r)^(n-1)
Where:
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Tenure in months
Before you calculate tenure, know that the EMI, principal, and interest all interact mathematically through this equation.
How to Calculate Home Loan Tenure?
To calculate the loan tenure, use the standard EMI formula. Also, convert inputs before you calculate.
Convert annual interest to monthly:
r = (Annual Interest % ÷ 12) ÷ 100
If known, convert EMI and principal used to find n
EMI is a fixed monthly payment. Unknown = n (the tenure)
Tenure Calculation Formula
When you already know your EMI, principal, and monthly interest rate, you can solve for n using logarithms:
n = log( EMI ÷ (EMI − P × r) ) ÷ log(1 + r)
Then convert months to years: Tenure (years) = n ÷ 12
Longer tenure will lead to lower EMI but higher total interest paid. Online tools like the Home Loan EMI Calculator let you instantly adjust principal, interest rate, or EMI and see how tenure changes, saving time and errors.
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- P = Principal loan amount
- r = Monthly interest rate = Annual interest rate / 12 / 100
- n = Loan tenure in months
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The term "loan tenure" refers to how long you will have to pay back the loan plus interest. As Harsh previously stated, the following formula is used to calculate tenure of home loan:
Tenure= [log(EMI) – log(EMI – (Principal Amount x monthly interest rate/1200))] / log(1 + monthly interest rate/1200)
Below, I have included an additional formula to determine the tenure. To find out how long you have left to pay off your house loan, apply any of the formulas.
How to Calculate Tenure of Loan?
If you know P, R, and EMI each month, then you can use the following formula to compute tenure.
Interest per month= P * R / 12
Tenure= P / (EMI-Interest per month).
You can use this calculation to arrange your funds efficiently and make well-informed decisions for their future. To calculate remaining tenure of home loan, follow the below tips:
Understanding the initial loan amount and interest rate is crucial in determining the remaining tenure. The monthly installment is determined in large part by these two numbers.
You ought to take into account how many months you have previously paid off your house loan. You can find out by multiplying the number of years paid by 12 and adding it to the number of paid months. Deducting this from the total loan tenure will result in the balance tenure.
I hope you got an idea of how to calculate balance tenure of home loan.
Calculate your EMI effortlessly at NoBroker. Read more -How to Calculate Interest Rate from EMI?
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How to calculate remaining tenure for home loan?
To understand how to calculate tenure of home loan, I will share with you a formula my maths teacher taught me. Tenure= (log(e) - log(e - (p * i))) / log(1 + i) I will explain the terms below. E= Monthly EMI P= Remaining Principal I= monthly interest rate/1200 that is 8.9/1200 For example: EMI is Rs. 6351 Principal is 200000 Interest rate is 8.9/1200= 0.0074166 ( if we consider 8.9% is the loan interest) Tenure = (log(6351) - log(6351 - (200000 * 0.0074166))) / log(1 + 0.0074166) After using this formula along with the numbers we will get the answer 35.9976292605. So we can round this up to 36. I hope you understand now how does the process for home loan tenure calculator works. Get home loans at the lowest interest rate of 6% from NoBroker. Check out now! You can also use NoBroker's EMI Calculator to calculate your Home Loan EMIs easily. This EMI calculator will help you make an informed home purchasing decision.[widget_emi_calci]
Read more: How To Calculate Home Loan EMI? What Is Difference Between Floating And Fixed Rate Of Interest?
How to Calculate Tenure of Home Loan?
Amrita
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2022-03-22T10:15:12+00:00 2023-11-17T20:07:27+00:00Comment
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