## EMI Calculator for Home Loan - Calculate Housing Loan Monthly EMI

This online tool helps you to calculate Equated Monthly Installment (EMI) for Home Loan / Housing Loan. After getting an estimate of your loan, you can apply for a Home loan online. If you are planning to buy a Home, then using this emi calculator tool will certainly help you plan better in fulfulling your dream to own your home.

This is a very simple and basic calculator which guarantees to provide the most accurate results based on your loan amount, monthly interest rate and tenure of the loan. It helps you make an intelligent decision about buying a new house. With the ease of your comfort, you can easily apply for the home loan online from the comfort of your sitting area. There are several banks in India and all over the world which allow you to apply online for home loan. Consider choosing the bank with low-interest rate and

## What is Home Loan EMI Calculator?

Home Loan EMI Calculator assist you in building your financial plan to buy your house. It is an easy to use calculator that gives correct calculations on the basis of principal amount, rate of interest and duration of the loan. Home Loan EMI Calculator tool assits in calculating the loan installments i.e. monthly EMI towards your home loan. It is an easy and simple to use calculator which also acts as a financial planning tool for a home buyer.

### How is EMI calculated on home loan?

**Formula for EMI Calulation is:-**

**P x R x (1+R)^N / [(1+R)^N-1]** where

P = Principal Loan Amount

N = Loan tenure in months

R = Monthly interest rate

Rate of interest (R) for which loan is calculated every month. **R = Monthly interest rate/12/100**

For example, if rate of interest is 8% p.a, then R = 8/12/100

If a person avails a loan of ₹10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then his EMI will be calculated as under:

**EMI= ₹10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = ₹11,714.**

## How can a online home loan Calculator helps you in planning your Finance?

This Home loan emi calculator application helps to get a clear understanding of the amount that needs to be paid through monthly EMIs for your home loan. It keeps you informed about the outlaw towards the house loan that needs to be paid every month. This free online emi calculation tool helps in estimating the loan amount that can be borrowed from the bank which helps in assessing the contribution requirement towards the cost of property. Therefore, computing the EMI is crucial for calculation of home loan eligibility and planning your home buying experience better.

## What is a Home Loan Amortization Schedule?

Loan amortization is the process of reducing the debt with regular payments over the duration of loan tenure. A home loan amortization schedule is a tabular data representing the details of the repayment amount, principal and interest component.

Though the Loan EMIs remain largely the same throughout the tenure of their loan, the amounts repaid are credited towards the principal and interest to be repaid. Typically the initial instalments contribute more towards the interest amount with later instalments going towards the principal.

An amortization schedule provides the break-up of these amounts repaid towards principal and interest along with their respective balances through every year of the loan.

## What is the principal amount and the interest paid through EMIs

Each EMI repays a part of the principal (or the amount borrowed) and the interest due on that principal outstanding. The proportion of each EMI used for repayment of the principal and the rate of interest changes over time. The first few EMIs contribute more towards the payment of interest and less towards repayment of the principal amount. But the later EMIs contribute more towards the repayment of the principal amount.

Banks and financial institutions generally calculate Home Loan EMIs using a common mathematical formula. So, that the EMI calculated and the amortisation schedule given by different banks and NBFCs will typically be similar for a given loan amount, tenure and interest rate. This also means that with the payment of each EMI, the pattern of reduction of the principal due generally follows a similar trend across all financial institutions.

It is a well-known fact that the initial EMIs contribute more towards payment of interest due as compared to the principal amount. However, during the tenure of the loan, subsequent EMIs contribute more towards repayment of principal amount as compared to previous EMIs.