Home Loan EMI Calculator

An EMI Calculator or Equated Monthly Installment Calculator is a tool which calculates your monthly EMI payments for a Home Loan within a few seconds.

To use the Home Loan EMI Calculator, all you need to do is enter the variables like principal amount, interest rate, tenure, etc. in the calculator and it will give you the EMI amount instantly.

How to Calculate Home Loan EMI Using the Formula?

The classic way of calculating the EMI is by using the formula stated below:

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

How to Calculate Home Loan EMI Using the Formula?

• The variables used here stand for:
• EMI - Equated Monthly Installments
• P - Principal Amount of the Loan
• n - Tenure of the Loan

Let's take an example to understand this clearly. For instance, you have taken a Home Loan of Rs 2 Lakh which is to be paid in 2 years at an interest rate of 20% per annum.

First, convert the yearly interest rate into months. We can obtain the monthly interest rate by dividing the yearly interest rate by no. of months in a year i.e. 12. So, monthly interest will be 20/12 = 1.66%.

• Now, put all the variables in the formula:
• EMI = [ P x R x (1+R)ⁿ ] / [ (1+R)ⁿ - 1 ]
• EMI = [2,00,000 x 1.66/100 x (1+1.66/100)^24] / [(1+1.66/100)^24 - 1]
• EMI = ₹10,177

Even, the EMI Calculator uses the same formula to calculate the EMI of Home Loan. We also - -recommend calculating the EMI via EMI Calculator as it is accurate, requires minimal calculation and can determine the EMI within seconds.