Home Loan EMI Calculator

A home loan EMI calculator is a financial planning tool available online. It helps you assess how much you will have to pay as EMIs each month if you borrow money via a home loan.

Buying your dream home or building it is a major life goal. Depending on the location and size of the house, you will need lakhs or crores of rupees to achieve this milestone. Most people may not have these funds available in hand. A home loan, however, can help finance this dream goal.

Before you apply for a home loan, you need to check what the EMI may be. This will help you understand how much you can borrow without overshooting your monthly budget. Here is where a home loan monthly EMI calculator can be incredibly useful.

A home loan EMI calculator works in the same way as most other online financial planning tools. It requires a few key details from the user. Once you submit these details, the house EMI calculator uses a mathematical formula to find the total interest payable on the amount you wish to borrow as well as the EMI due each month.

Based on key inputs like the loan amount, interest rate and repayment duration, the home loan EMI calculator instantly tells you how much interest you will have to pay on the borrowed amount. You can also check the monthly EMI and decide if your current financial situation allows you to absorb this additional cost comfortably.

The home loan EMI calculator uses a mathematical formula to determine the amount of EMI due each month. This is different from a home loan eligibility calculator, which helps you find if you qualify for a home loan. To find the monthly EMI, a home loan EMI calculator uses the following formula:

EMI = [P x r x (1 + r)n] ÷ (1 + r)n — 1

Here,

P is the principal loan amount

r is the monthly interest rate

n is the tenure of the loan in months

For instance, say you wish to borrow Rs. 20 lakhs as a home loan. The rate of interest on this loan is 10% per annum. You plan to repay the loan in 5 years. In this case, if you plug the values into the home loan EMI formula to find the amount due each month, this is what we have:

= [P x r x (1 + r)n] ÷ (1 + r)n — 1

= [Rs. 20,00,000 x 0.0083 x (1 + 0.0083)60] ÷ (1 + 0.0083)60 — 1

= Rs. 42,494

This formula is effective but can be hard to use manually. You may make mistakes or find it too time-consuming. This is why it is easier and more effective to use a home loan EMI calculator to find the monthly instalment amount. If you enter these values in the calculator, you will get the same home loan EMI value, just more quickly and accurately.

To use the home loan EMI calculator on the Research 360 platform from Motilal Oswal, you only need to follow these simple steps:

• Step 1: Enter the amount you wish to borrow as a home loan.
• Step 2: Enter the annual rate of interest.
• Step 3: Enter the repayment tenure in years.
• Step 4: Submit these details online.

With these inputs, the calculator instantly shows you the home loan EMI amount due each month. In addition to this, you can also check the

• EMI Insights for Budgeting

  A home loan monthly EMI calculator gives you precise insights about the instalments due. This can help you plan your monthly budget more effectively. You can understand how different loan amounts and repayment tenures can affect your home loan EMIs. This helps you adjust your borrowings to align better with your financial situation.

• Comparison of Loan Offers

  The calculator also facilitates easy comparison of various home loan options by allowing you to submit different inputs. You can modify the interest rates, loan amount and tenures to compare loan offers from different lenders. This will make it easier for you to identify the most cost-effective loan option.

• Repayment Planning

  With a home loan EMI calculator, repayment planning also becomes easy. This is because you can decide upfront whether you have the financial capacity to repay the loan you are planning to take. You can also use the amortisation schedule to make a more informed decision about your repayment schedule.

• User-Friendly Interface

  Most online home loan EMI calculators feature intuitive designs that make complex financial calculations accessible to all users. With simple input fields and instant results, even those without financial expertise can easily understand the terms of their loans.