How to Use Home Loan Calculator Online and Its Benefits

home loan EMI

Have you finally decided to purchase a home? That is, after all, a goal practically everyone strives towards in life. As exciting as this endeavour may seem, it is also true that owning a home with a single payment may be rather challenging for many. However, this long-term financial aim is made attainable by house loans with competitive home loan interest rates.

A home loan is composed of two components: principal and interest, which must be paid in equal monthly instalments or EMIs. Calculate the EMI amount using simple online home loan calculator tools, such as the home loan EMI calculator online. A house loan EMI calculator enables you to experiment with various permutations and combinations until an appropriate EMI number is obtained. The process for calculating EMI payments per loan length is provided below.

How to Use an EMI Calculator?

Formula Used in Home Loan EMIs Calculation:

The following equation can be utilised to determine the EMI Amount:

EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1], 

where P, R, and N are variables, implying that the EMI value will change when any of the three elements is changed.


  • P denotes the ‘Principal Amount.’ 
  • R denotes the bank’s ‘Interest Rate.’
  • N denotes the ‘Duration of the Loan.’

The EMI increases proportionally to the loan’s term length. On the other hand, a higher monthly instalment results in a lower total interest rate on loans.

How to Use It?

A home loan EMI calculator online assists potential borrowers in estimating the precise monthly payment needed on their home loan. Additionally, this interactive calculator gives a breakdown of how much the borrower will be required to pay toward debt repayment and interest payments. A house loan calculator requires the following three values to be entered:

  • Principal amount
  • Interest amount
  • Loan tenure

Benefits of a Home Loan Calculator

  • A home loan EMI calculator online aids in financial planning by providing an interactive platform for optimising monthly instalments.
  • Simply enter the required information – principal loan amount, interest rate, and loan term – in the appropriate boxes, and the calculator will automatically calculate the home loan EMI.
  • You have the freedom to construct an infinite number of permutations and combinations that will assist you in arriving at the correct EMI value.
  • Additionally, you have the option of increasing or decreasing your tenor. This benefit may enable you to repay your payment at a more manageable rate.
  • The calculator’s output might assist you in determining whether you want a long-term or a short-term house loan.
  • If you can afford larger EMIs, a short-term loan makes more sense because it lowers your overall interest rate. Alternatively, if you wish to pay a lower EMI without reducing your living costs, accept a longer-term home loan. This will result in a lower EMI but a higher total rate of interest.

Final thoughts

As you can see, simply satisfying housing loan qualifying requirements in detail is insufficient. It is also critical to know the monthly EMI amount in advance to manage your money and facilitate home loan payments. The home loan EMI calculator is a helpful online tool that allows you to input pertinent information via sliders or manual entry; after you do, the EMI calculator for a home loan will calculate your EMI amount in a matter of seconds!

Frequently Asked Questions

Question: What exactly is a home loan calculator?

Answer: An EMI Calculator is a financial planning tool that assists you in calculating the loan payments, also known as EMIs (equivalent monthly instalments), that you will be required to pay to your bank until the loan amount is entirely paid off.

Question: What is the definition of amortisation?

Answer: In finance, amortisation is a method of repaying a loan amount over a certain period.

Question: Is it possible for me to apply for a shared property loan?

Answer: Yes, it is possible. As well as in a shared property loan, the nature of your relationship with the candidate is important to consider.

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