Home Loan EMI Calculator

What is Home Loan EMI?

EMI stands for Equated Monthly Installment. It is the fixed amount paid 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.

In the initial years of a home loan, a larger portion of the EMI goes towards paying the interest. As the loan matures, a larger portion goes towards repaying the principal amount.

How EMI is Calculated

The mathematical formula for calculating EMI is:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]

Where:

• P = Principal Loan Amount
• r = Monthly Interest Rate (Annual Rate / 12 / 100)
• n = Loan Tenure in Months (Years * 12)

Factors Affecting Home Loan EMI

• Principal Loan Amount: Higher the loan amount, higher the EMI.
• Interest Rate: Higher the interest rate, higher the EMI.
• Loan Tenure: Longer the tenure, lower the EMI (but higher total interest paid). Shorter the tenure, higher the EMI (but lower total interest paid).

Disclaimer: This calculator provides an estimate based on the standard EMI formula. It does not account for processing fees, pre-payment charges, insurance costs, or potential changes in interest rates (for floating rate loans). Always check the loan sanction letter from the bank for the exact EMI amount and other charges. Consult a financial advisor for personalized loan advice.