Home Loan EMI Calculator
Purchasing a home, or property to build a home, is a goal for many of us today. With home prices increasing rapidly, varying interest rates, and loan amounts offered by lenders, it can get overwhelming for potential buyers to calculate their mortgage installment payments accordingly without the right tool. Home Loan EMI Calculator is a user-friendly online tool that uses precise algorithms and up-to-date equations to simplify complex calculations that assists a buyer in planning their finances and provides them with an accurate monthly EMI amount that they are liable to pay for their dream home.
- ₹ 1L
- ₹ 10Cr
- 1 Yr
- 30 Yr
- 5 %
- 20 %
- Interest Amount
- Principle Amount
- Principle Amount
- ₹4,80,000
- Interest Amount
- ₹3,27,633
- Total Amount to Pay
- ₹8,07,633
Unlock the door to your dream home with strategic investments.
| Year | Interest Paid | Principle Paid | Outstanding Loan Balance |
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A Home Loan EMI Calculator is an online tool used to help determine your home financing EMIs. The calculator uses information such as the Loan Amount, Loan Tenure, and Interest Rate and then instantly computes the Equated Monthly Installment (EMI) and the total interest you will pay throughout the loan period.
Home Loan EMI Calculator assists potential buyers in evaluating their home loan affordability, home loan installments, compare lenders, and make informed financial decisions to simplify their loan repayment process. Home Loan EMI Calculator uses mathematical equations to calculate an accurate EMI figure, which includes both principal and interest components. It is important to note, however, that the actual interest rate may vary. Interest rates should always be confirmed by the lender.
Using Home Loan EMI Calculator is a simple process. All you need is your loan details, i.e., your principal or loan amount, the interest rate and the tenure of the loan. Please consult with your lender for the most accurate and up-to-date loan details.
Here's a step-by-step guide on using Home Loan EMI Calculator:
Step 1: Access the Calculator
Visit 5paisa’s Home Loan EMI Calculator.
Step 2: Enter Loan Details
Input the Loan Amount you intend to borrow from your lender.
Specify the Tenure, indicating the number of months or years you plan to repay your mortgage.
Enter the Annual Interest Rate provided by the lender, ensuring it's accurate for precise calculations.
Step 3: Get Instant Results
The calculator will process and display the information automatically.
You will receive your Monthly EMI amount and the Total Amount you will pay towards the loan over its tenure.
The calculator will also provide insights into the division between the principal and interest amounts. Additionally, it will also display the remaining balance at the end of each year.
Here’s how you can take advantage of Home EMI Calculator.
• Budgeting Planning: Home Loan EMI Calculator provides a clear understanding of your cash outflow each month towards your mortgage installment payments.
• Lender Comparisons: Home Loan EMI Calculator can be used to compare principal, interest rates and tenures offered by different lenders to identify which one suits you best.
• Transparency: Home Loan EMI Calculator shows you the breakdown of your mortgage payments, the principal paid, interest paid, total payment and outstanding loan balance.
• Amortization Schedule: Home Loan EMI Calculator shows you an Amortization Schedule of future payments with monthly and yearly estimates so you can be always be prepared.
• Quick Calculation: Loan components can be challenging to calculate. Home Loan EMI Calculator takes care of the math.
• Part-payment Calculation: Part-payment can help shorten the loan duration. Home Loan EMI Calculator can help determine the changes to your mortgage payments.
To summarize, Home Loan EMI Calculator is a simple, convenient and error-free tool that makes it necessary for those looking to calculate home financing EMIs.
A Home Loan EMI Calculator is a valuable tool by providing instant and accurate housing finance EMI calculations based on standardized formulas. This eliminates the need for manual and potentially erroneous calculations.
By inputting your loan amount, interest rate, and tenure, you can determine the exact monthly mortgage installments you'll need to pay. This information allows you to assess whether the calculated EMI fits within your monthly budget.
Furthermore, you can adjust variables to see how they affect your monthly EMI, enabling you to choose a loan that aligns with your financial capacity or calculating a part-payment to reduce your EMI. Additionally, tThe calculator provides transparency by breaking down the total payable amount, including the loan amount and interest.
Home Loan EMI amounts are influenced by various factors. Changes in variables can impact your monthly mortgage installments. Below are the major factors that affect you EMI amount:
• Principal Amount: This is the amount you borrow from a lender. Your CIBIL score, age and income determine how much money the lender is willing to lend. A higher principal results in a larger EMI.
• Interest Rate: The rate offered by the lender. A higher rate leads to a larger EMI.
• Loan Tenure: Home loan tenures are set at a maximum of 30 years but depend on the age of the borrower.
• Processing Fees: These are costs that are charged by a lender for processing the loan.
• Prepayments: Prepaying a loan reduces the principal outstanding amount, which in turn reduces your EMI.
The formula for calculating Home Loan Equated Monthly Installments (EMI) is as follows:
E = [P x R x (1+R) ^ N] / [(1+R) ^ N-1]
E = 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 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
Manual home loan interest calculations can be quite a tedious job. For such purposes, it is highly recommended to use 5Paisa’s Home Loan EMI Calculator.
Frequently Asked Questions
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.
To use 5Paisa’s Home Loan EMI Calculator you require three variables: the principal amount you are going to borrow, the interest rate, and the loan tenure. Accurate information will ensure you get correct calculations.
The accuracy of Home Loan EMI Calculator depends on the data that you input. It's necessary to use reliable and up-to-date information for accurate results.
The EMI amount is fixed if you opt for a home loan on a fixed rate of interest. If you opt for a floating rate of interest, your EMIs will vary over the tenure. You can also reduce the EMIs if you make a part-prepayment.
Home Loan EMI Calculator is free to use. Financial institutions and investment platforms also offer these calculators as a helpful resource.
Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..