EMI Calculator for Home Loans up to Rs.1 Crore

Securing house loans is easy as long as you arrange the necessary documents, have a good credit score, and meet the eligibility criteria. You go to the bank, make an application, submit the crucial documents, pass the evaluation, and ta-da – the money will be deposited in your bank account, and you can swiftly buy your dream home afterward. Well, this works. But you shouldn’t be this hasty. Before you apply for a mortgage, you must make a budget and ensure that the EMI of the loan doesn’t put you in a financial crisis. That’s why you need to understand how to calculate the home loan EMI properly before borrowing the money. Let’s see how to do it.

EMI Calculator Formula for Home Loans up to Rs. 1 Crore:

You should always calculate the EMI of the instant home loan offers to understand the total cost of borrowing money. Here’s the formula for the home loan EMI calculator that you can use to get a rough idea about the EMI you will have to pay every month until you settle the loan:

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

In this formula,

EMI: Equated Monthly Installment

P: Loan amount or the Principal

R: Rate of interest per month. To get this figure, you just need to divide the annual interest rate by 12.

N: The total tenure of the loan in months.

For example, if you get a mortgage of Rs. Fifty lakhs for 30 years at an 8.50% interest rate, your EMI will be Rs. 38,446.

Please note that this formula only accounts for the principal loan amount, the rate of interest, and the home loan tenure. Any processing fee or penalty charged by the bank is not included in this EMI calculation formula.

Advantages of Using a Home Loan EMI Calculator:

Using a home loan calculator to figure out the EMI before you actually apply for the housing loan may not seem all that important. But trust us, it is. Let’s take a look at some of the most important benefits of using a home loan calculator.

1) It’s Easy to Calculate:

You can use the formula we have mentioned previously to calculate your home loan EMI with ease. You just need a calculator and the details of the loan. Grab the calculator and put the value of the principal, the rate of interest, and the tenure in months. And that’s it. You get the amount of EMI you will be paying once the loan is sanctioned. No need to bother yourself with complicated mathematics at all.

2) You Can Easily Compare Different Home Loan Offers:

Once you get an estimated EMI of all the home loan offers, you can easily compare different loans and pick the one that fits your budget. Now, you no longer have to look at the interest rate and the loan tenure and worry about not getting a precise idea of your monthly debt after securing the loan.

3) You Get to Break up the Charges:

A bank or a home loan finance company only gives you a rough idea about the interest rate. While it’s an important factor of the loan, it doesn’t give you a clear understanding of the processing fee or the other financial charges. An EMI calculator will break down the financial charges into simple facts and figures. As a result, you get a complete understanding of the true cost of the housing loan.

4) It Allows You to Choose the Right Tenure:

The amount of money you need to pay as EMI varies greatly depending on the tenure of the home loan. If you take a home loan with longer tenure, you need to pay less EMI. But you don’t know the exact number, do you? With the EMI calculator formula, you can receive pretty accurate estimations on the change of EMI, depending on the varying loan tenure. This knowledge will allow you to apply for a home loan that fits within your budget.

5) It Makes Loan Management Easier:

Many people make prepayments once they get a salary hike or bonus to reduce the EMI or total tenure of the loan. But it’s difficult to get precise data on the changes after the prepayments. Well, not anymore. With the home loan EMI calculator, you can check exactly how prepayments affect your EMI or the tenure of the mortgage with ease.

6) You Can Validate the Loan Information:

Sometimes, people just feel uneasy until they verify the reliability of data with their own eyes. And we understand it. With an EMI calculator, you can verify the repayment information and schedule without breaking a sweat. You can also negotiate the interest rate and verify the readjusted EMI live to get the best housing loan deal.

Factors That Affect Your Home Loan EMI:

Here is a list of factors that affects the home loan EMI:

  • Principal: The principal amount or the money you borrow from the bank directly affects the housing loan EMI. The more money you borrow, the higher the EMI.
  • Interest Rate: The rate of interest is directly proportional to the EMI of the loan. In simple terms, if you can find a lender with a low-interest rate, you will be paying a lower EMI.
  • Tenure: If you want to pay a lower amount of money in EMI, make sure you get a loan with a long tenure of repayment.
  • Processing Fee: Every bank charges a small percentage of the principal amount as the processing fee. The processing fee of a mortgage can vary, depending on the lender and the home loan offer. An instant home loan usually has a high processing fee compared to other mortgage plans.


Understanding the home loan EMI and the figures related to it can be tricky. The complex calculations using the principal amount, interest rate, and loan tenure can instantly boggle anyone’s mind. However, using the EMI calculator, you can not only calculate the EMI of the mortgage within minutes, but you can also understand the factors that affect the repayments. So, before applying for a house loan, calculate the monthly installments using the EMI calculator formula.

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