Home Loan EMI Calculator

Home Loan EMI Calculator

Monthly EMI
Principal Amount
Total Interest
Total Amount

What is Home Loan EMI Calculator?

A home loan is a type of secured loan that helps individuals finance the purchase of a home and pay the borrowed amount in monthly installments. It is offered by banks and NBFCs who take the property as collateral for the loan. A home loan calculator allows you to calculate the EMI on your home loan and helps you make an informed decision.

How Home Loan EMI Calculator Works?

A house loan calculator is a financial planning tool that helps you in the calculation of EMI, interest amount payable, and the total home loan amount. The calculator requires a few inputs to work:

Borrowed Amount: The amount of loan that you want to borrow for the purchase of the house.

Loan Tenure: The amortization period for the repayment of the home loan.

Rate of Interest: The interest rate that the lending institution will charge on the loan.

The housing loan EMI calculator will use the inputs to calculate and show EMI amount, total payable interest, and total repayment amount. You can also change the inputs and the home loan interest calculator will show you the results accordingly.

Formula Used in Calculation of Home Loan EMI

The formula for home loan EMI is P x R x (1+R)^n/{(1+R)^n-1} where,

P is the principal loan amount borrowed

R is the applicable monthly home loan interest rate

N is the total loan tenure in months


Illustration With an Example

Suppose X took a home loan of Rs 60,00,000 for 20 years at an interest rate of 6 percent per annum.


R (monthly interest rate) = 6/(12x100) = 0.005

N (loan tenure in months) = 20 x 12 = 240 months

Your EMI will be: 60,00,000 x 0.005 x (1+0.005)^240/238 = Rs 42,986

Total interest payable = Rs 43,16,606

Total payable amount (principal + interest) = Rs 1,03,16,606


Calculation of home loan EMI can be complex and time-consuming as it requires a number of inputs and complicated calculations. A home loan interest rate calculator does all the work and shows you the EMI, interest payable, and total payable amount within a moment.

Note: If you opt for a floating interest rate home loan, your monthly EMI will keep changing according to the change of interest rate by the lender. Hence, a home loan EMI calculator works for fixed interest rate home loans.


How to Use Home Loan EMI Calculator?

A home EMI calculator is an easy-to-use online tool. You need to follow a few simple steps to use the online home loan calculator.

  • Choose an online house EMI calculator. There are plenty of options available online to choose from. INDmoney’s home loan EMI calculator is fairly simple to use and calculates your loan EMI instantly.
  • Enter the amount of loan you want to borrow from the lender.
  • Enter the repayment period (in years) and the rate of interest charged by the lender.
  • The home loan calculator will show the results immediately.
  • You can also change the inputs and the calculator will show the EMI, interest payable, and total payable amount accordingly.

Benefits of Using INDmoney’s Home Loan EMI Calculator

  • INDmoney’s online home loan EMI calculator helps you plan your housing finance better by showing you the amount monthly installment (EMI), net interest payable, and the total payable amount.
  • It is an online tool that saves your time and effort from doing manual calculations. You only need to input a few details and the calculator will show the results instantly.
  • You can compare home loan offers from different lenders by calculating the EMI with different interest rates. The home loan EMI calculator helps you to get the best deal for the finance of your house.
  • The home loan EMI calculator also helps you to decide the best loan tenure based on your repayment ability. You can easily evaluate your repayment ability based on your monthly income, expenses, and savings.

Finance the Purchase of Your Dream Home

Owning a home is a dream of many but the expenses associated with it can come heavy on the pocket. A home loan helps you to finance the purchase of your dream home easily. You can borrow a home loan and purchase a house whenever you want to and repay the loan in small monthly installments. A home loan helps you in a number of ways.

A Type of Investment

Buying a house not only serves the purpose of your living but is more of a type of investment. Your house property has a value that in general, increases over the year. So, in other words, you are actually making an investment by taking a home loan.

Low Interest Rate

You can get a home loan at as low as 6 percent. This helps you to lessen the financial burden from your shoulders. Now, with the home loan EMI calculator, you can easily compare the home loan offers by different lenders and get the best deal possible.

No Additional Collateral Required

One of the best benefits of a home loan is that you do not have to pledge any extra collateral other than the home (for which the loan is taken). This also saves you from taking over-expensive unsecured loans.

Tax Benefits

There are a number of provisions in the Income Tax Act of India like Section 24(b), 80C, 80EE, and 80EEA that allow you to claim home loan interest deductions from your taxable income. You can save up to 3.5 lakhs annually by claiming exemptions according to your home loan EMI and annual taxable income.

Home Loan FAQs

How much home loan can I take?

Banks and other lenders generally approve loan amount of up to 70-90% of the cost of the house. The final sanctioned loan amount depends on your monthly income, credit history and type of employment as well.

Can I take home loan for an under construction property?

Yes, you take a home loan for an under construction property as well.

Can I take a second home loan and claim interest deductions from my income?

Section 80EE and Section 80EEA allow interest exemption from taxable income only for the purchase of the first house property. This means if you already own a house property, you cannot claim these tax exemptions for the purchase of another property.

Can I repay my home loan early?

Yes, you can repay your home loan early and save interest. This is called prepayment or foreclosure of the loan. However, you must check the foreclosure charges (if any) charged by the lender.

Can I apply for a joint home loan?

Yes, you can apply for a joint home loan easily, provided that the co-applicant is one of your immediate family members.