Home Loan Calculator

Home Loan Calculators are self-help planning tools that depend on important factors and the assumptions you make before you decide on taking a home loan. Home loan calculators are an accurate system of deriving the EMI that you would need to pay after you avail of a home loan, depending on the loan amount you have requested, the tenure that you would want the loan for, and the rate of interest that is offered to you by the bank or the financial institution. A home loan is a viable option that helps you with financial resources to get your own house. You can easily repay your loans through an equivalent monthly payment (EMI), and it is always a good idea to estimate what the EMI will be as part of careful loan planning. This is a comprehensive guide on Home Loan Calculators - an automated tool that is effective in helping you manage your loan and finances well for the coming years after you take a home loan.  

Year Interest Paid (A) Principal Paid (B) Total Payment (A+B) Outstanding Loan Balance

The EMI for a home loan (Equated Monthly Installment) is a combination of the principal amount and the interest paid on loan. EMI needs to be paid each month and is usually fixed over the loan term. The first few EMIs comprise a higher amount of interest payment as compared to the principal amount payment as EMIs are calculated using a balance reduction method, which works to your advantage as a borrower.

As discussed above, a housing loan calculator is an automated tool that helps you make an informed decision and manage your finances well by giving you the accurate EMI amount that you are liable to pay each month after you have taken out a home loan. This simple, convenient, and user-friendly home EMI calculator helps in choosing the right loan offer and the right loan amount plus loan term. This tool is also quite helpful in managing your cash flow and in analyzing how you can fit the new EMI into your monthly income budget.

EMI is short for Equated Monthly Installment, which comprises repayment of the principal loan amount and outstanding interest amount of your home loan. In the initial months, the deduction of interest amount will be more than the proportion of the principal amount in your EMI.

Eventually, in the coming years, the monthly EMI payment does not change, but the ratio of the principal and interest components will change. If you opt for a longer home loan tenure, the EMI will reduce. If you opt for a financial lender who is charging a higher rate of interest, this would mean a higher amount of EMI to be paid each month. So, EMI depends on the principal loan amount, loan tenure, and rate of interest. The EMI for a home loan should be paid each month until the loan amount is fully repaid. 

Here is the formula for calculating EMI


P = Principal Loan Amount

r = Rate of interest

The Rate of interest is calculated every month, which means if it is 10% for the whole year, then it will be 10/12/100, which will be 10/12/100=0.00833

n =loan term (number of months)

For example, if you borrow ₹20,00,000 from the bank at 10% annual interest for a period of 10 years (i.e., 120 months), then EMI = ₹10,00,000 * 0.00833 * (1 + 0.00833)120 / ((1 + 0.00833)120 - 1) = ₹26,430.

This means you will have to pay ₹26,430 for 120 months to repay the entire loan amount.

The total amount payable = ₹26,430 * 120 = ₹31,71,619

Interest paid will be = ₹11,71,619

If you want to apply certain permutations and combinations using a different value for the principal amount, rate, or interest, and the number of months, the manual home loan interest calculation can be quite a tedious job.

For such purposes, it is highly recommended to use the automated Home Loan Calculator that can help you with various calculations till the time you get the achievable EMI which you can easily pay out. This also helps you assess the different rates of interest offered by different lenders, so you can wisely make the decision.

The EMI calculator housing loan provides a clear understanding of your home loan outflow each month. This helps you to prudently evaluate the loan amount, which can be affordable, and assess your contribution or the part-payment that you would need to make from your savings considering the cost of the property.

The higher amount you shell out from your pocket, the lower will be the principal amount and thus the EMI. Also, considering your monthly income, the housing loan calculator makes it easy for you to budget the amount accordingly and assess whether you can afford to pay the EMI for the home loan amount after taking out your mandatory monthly expenses or not.

Thus, a home loan calculator is of paramount importance when planning your home purchase journey.

It is very simple to use the EMI calculator for a housing loan at 5Paisa. Here are step-by-step details on what you need to do:

Step 1 – Visit the official website and home loan calculator link of 5Paisa - https://www.5paisa.com/calculators/home-loan-calculator

Step 2 – Enter the loan amount that you wish to apply for. This amount should be assessed after you have decided on the contribution that you would be making from your savings towards the loan.

Step 3 – Enter the desired loan term in the number of years you wish to apply for the loan.

Step 4 – Enter the rate of interest offered to you by the bank or the financial institution.

Step 5 – You will get the estimated EMI amount that you would need to pay every month, along with the total amount of interest and the total payable amount to be paid towards the loan by the end of the term. You will also get a year-by-year Home Loan Amortization Schedule, which will be discussed below.

There are many advantages of using the home loan calculator, and some of them are listed below:

Helps Plan and Manage Your Finances in Advance

The EMI calculator for housing loans helps to manage your cash flow well in advance and is substantial for financial planning and credit management. It helps you assess the kind of loan amount, EMI amount, and rate of interest that you can afford according to your monthly income, other expenses, other loans, and repayment capacity.

Choosing the Right Term

If you can afford a higher amount of EMI, you must choose a shorter loan tenure so that you pay less interest and your loan closes soon. But if your monthly income doesn’t allow a heavy EMI amount, then you can choose a longer loan tenure using the property loan EMI calculator, which gives you the benefit of a lower monthly EMI but increases your interest amount.

Convenient, Safe, and Easy to Use

You can save all the time and effort that you would be wasting when doing manual home loan interest calculations for EMI. With home loan calculators, all you have to do is, enter staple inputs, and you get the EMI payable amount in a second.

Helps Validate Information

The home loan repayment calculator helps you verify and validate the repayment schedule. There could be slight variations considering the fee charged by the banks, which can be included in the EMI amount.

Compare Loan Offers

This is one of the best features of home loan repayment calculators, as you can easily compare loan offers from various institutions and pick the most viable option.

Helps You Focus on Real Estate Research

The property loan EMI calculator helps you determine the right mortgage amount, EMI to be paid, and the term that best fits your financial situation. This helps you pay more attention to your real estate search.

Easily Accessible Tool

You don’t need to download or install the app. All you need to do is to go to the official website of 5Paisa, and you can easily access the home loan calculator without any hassles. You can apply different permutations and combinations to reach the desired EMI.

Home Loan Amortization Schedule is the debt relief process that displays the payments that you make regularly and gives you a balance of the tenure, principal amount, and amount of interest. It is in the tabular form that shows details on repayment amount, principal, and an interest component.

You also get insights into the accurate principal/interest ratio using the home loan amortization schedule, based on loan term and a complete breakdown of interest amount.

If you have good credibility, a decent credit rating, income, a financial status, you can get the privilege of a pre-approved in-principal home loan. This is offered by banks or NBFCs even before you apply for a home loan to acquire your dream home.

Let us take an example of what a home loan amortization schedule looks like.

So, if we login to the 5Paisa webpage and enter the following details:

Loan Amount - ₹30,00,000

Loan Term – 20 years

Rate of Interest – 7%

The EMI calculator housing loan will follow the formula P x R x (1+R)^N/[(1+R) ^ (N-1)] and reveal the below-given amortization schedule of the loan for 20 years.

The Monthly EMI = ₹23,259

Principal Amount = ₹30,00,000

Interest Amount = ₹25,82,152

Total Amount to pay = ₹55,82,152

Year Interest Paid (A) Principal Paid (B) Total Payment (A+B) Outstanding Loan Balance
2022 52,399 17,378 69,777 29,82,622
2023 2,06,483 72,623 2,79,106 29,09,997
2024 2,01,233 77,875 2,79,108 28,32,123
2025 1,95,604 83,504 2,79,108 27,48,618
2026 1,89,565 89,543 2,79,108 26,59,077
2027 1,83,093 96,015 2,79,108 25,63,063
2028 1,76,153 1,02,954 2,79,107 24,60,109
2029 1,68,710 1,10,398 2,79,108 23,49,711
2030 1,60,732 1,18,376 2,79,108 22,31,334
2031 1,52,171 1,26,936 2,79,107 21,04,398
2032 1,42,997 1,36,111 2,79,108 19,68,286
2033 1,33,156 1,45,952 2,79,108 18,22,335
2034 1,22,608 1,56,500 2,79,108 16,65,833
2035 1,11,292 1,67,816 2,79,108 14,98,018
2036 99,162 1,79,946 2,79,108 13,18,071
2037 86,153 1,92,955 2,79,108 11,25,116
2038 72,202 2,06,905 2,79,107 9,18,212
2039 57,246 2,21,862 2,79,108 6,96,350
2040 41,207 2,37,901 2,79,108 4,58,451
2041 24,010 2,55,098 2,79,108 2,03,354
2042 5,977 2,03,353 2,09,330 0























The Home Loan Calculators consider some important factors before displaying the expected EMI amount:

● Principal amount: This is the amount that you plan to borrow.

● Interest rate: The rate offered to you by the bank/NBFC depends on your credibility and CIBIL score, Income, age, and repayment capacity.

● Duration: The term of the loan, a maximum of which is 30 years and majorly depends on your age.

● Processing Fees: These are the costs that are charged by financial institutions while processing your loan application.

● Prepayments: Prepaying your loan – partially or fully can reduce your outstanding principal amount and interest burden, which ultimately reduces your monthly EMI.

With advancements in technology, there is a surge in people applying for home loans, and these high figures highlight the necessity to use home EMI calculators to deal with higher lending rates and keep your finances on track. So, now you can think of buying your dream home, and all you need is an approved home loan. Plan it well using the housing loan calculator.


The home loan EMI runs from the month following the one in which the loan was disbursed. So, if your loan amount will be disbursed in November 2022, you will start paying your EMIs from December onwards.

A home loan is usually repaid in equal monthly installments (EMI), which comprises the interest and principal amount.

The following types of home loan products are commonly offered in India by banks and financial institutions:

1. Home loans to buy a bungalow, an apartment, etc.

2. Home loans for the purchase of real estate from development agencies.

3. Loans for construction on owned/leased land or land allocated by a development agency.

4. Plot purchase credit to purchase a plot through direct assignment or a second sale transaction.

5. Balance transfer loan - Transferring your current home to another bank/financial institution is known as a balance transfer loan.

6. Home improvement loan to renovate a home in several ways.

7. Loan for the extension of the house to expand or add space to your home, such as extra rooms and floors, etc.

You can choose to make a down payment of a minimum of 10% to 25% from your savings, and the remaining amount (90% or 75%) of the property purchase can be applied for as a loan.

Yes! You are entitled to tax relief as specified under the Income Tax Act, 1961:

Section 80C: Deduction of up to ₹1.5 lakh annually on the principal paid.

Article 24: Deduction of up to ₹2 lakh on the annual interest paid.

Section 80EE: Deduction on the additional amount of interest up to ₹50,000 besides the amounts indicated in Articles 80C and 24, which is subject to certain conditions.


You must apply for a home improvement/renovation loan which comprises longer repayment terms and affordable interest rates to make necessary renovations to your home.

The minimum amount that you can borrow as a home loan is Rs 3 lakh.

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