Home Loan EMI Calculator
Use our free EMI calculator to instantly estimate your monthly home loan payments. Plan your budget, understand your total interest cost, and make confident financial decisions in seconds.
Enter Loan Details
Your Loan Summary
Monthly EMI
₹ 43,391
Total Interest Payable
₹ 54,13,889
Total Amount Payable
₹ 1,04,13,889
Loan Amortization Schedule
| Year | Principal (A) | Interest (B) | Total Payment (A + B) | Balance |
|---|
Understanding Your Home Loan EMI
An Equated Monthly Instalment (EMI) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
How is Home Loan EMI Calculated?
The calculation of your home loan EMI is based on a standard mathematical formula:
Where:
- P stands for the Principal Loan Amount.
- N is the Loan Tenure in months.
- R is the monthly Interest Rate (annual rate divided by 12).
Our calculator automates this complex formula, giving you a quick and reliable result.
Factors Affecting Your EMI
Three main factors directly influence your monthly EMI amount:
- Loan Amount: The higher your loan amount, the higher your EMI will be. It's the base on which interest is calculated.
- Interest Rate: A lower interest rate reduces your borrowing cost, leading to a lower EMI. Your credit score plays a crucial role here. Learn more in our guide on how to improve your credit score for a better loan rate.
- Loan Tenure: A longer tenure reduces your monthly EMI, making it more affordable, but it significantly increases the total interest you pay over the loan's lifetime. Conversely, a shorter tenure means higher EMIs but less overall interest paid.
Frequently Asked Questions (FAQs)
What is a good tenure for a home loan?
Most home loans in India are taken for a tenure between 15 and 20 years. While a longer tenure (up to 30 years) reduces your monthly EMI, you end up paying significantly more in total interest. It's best to choose the shortest tenure you can comfortably afford to save money in the long run.
Can I prepay my home loan?
Yes, you can prepay your home loan, either partially or in full. As per RBI guidelines, lenders cannot charge a penalty for prepaying a floating-rate home loan. Prepayment helps reduce your outstanding principal, which can either lower your future EMIs or reduce your loan tenure, saving you a substantial amount of interest.
What is the difference between fixed and floating interest rates?
A **fixed interest rate** remains constant throughout the loan tenure, providing you with a predictable EMI. A **floating interest rate** is linked to the bank's benchmark rate and changes over time. Floating rates are generally lower than fixed rates initially but carry the risk of increasing if market rates go up. Most borrowers in India opt for floating rate home loans.
Are there any other costs besides the EMI?
Yes, a home loan involves several other charges, which are not part of the EMI. These include processing fees, legal and technical valuation fees, stamp duty, registration charges, and potentially property insurance premiums. It's important to budget for these additional one-time costs when planning your home purchase.