Know the formula to calculate your home loan EMI

Purchasing or constructing a home is one of the most significant financial liabilities. A home loan makes a home purchase or construction super easy and highly convenient. However, knowing the formula for calculating home loans is crucial for a sensible decision. The following sections contain a foolproof way to calculate home loan EMI for you to make informed decisions.

Home loans are high quality loans. This often lasts for more than two decades and keeps the borrower in debt until the loan amount and interest are fully repaid. Since this is one of the largest loans ever taken, one should consider one’s finances and affordability before taking out a home loan. 

You have to be content with the fact that a fixed portion of your income goes into an equivalent monthly payment, or EMI payment, for years to come. To help you understand the nature of your EMI, you can get help from a free online tool known as the EMI Home Loan Calculator. 

Calculators are usually available free of charge and unlimited on all lender’s websites. Before applying for a home loan, let’s find out what an EMI home loan calculator is, how to calculate an EMI home loan and the many benefits of using it.

When you use EMI’s free online home loan calculator, you don’t have to worry about security issues because you don’t have to reveal your identity, which makes it completely safe to use. Have you cleared the hurdles on your home loan journey and are you ready to start your journey to your new home? If so, the next step is to get the EMI using an online loan calculator e.g. B. Home loan EMI calculator to find out easily.

Why Should You Apply For a Home Loan?

A home loan is the quickest way to get funding for constructing or purchasing a house. Reputed lenders give you up to 90% of the house’s value as the loan amount. Also, the repayment tenure is a high thirty (30) years, meaning the EMI amount will never burden your wallet. Hence, applying for a home loan is always a sensible decision.

Formula For Home Loan EMI Calculation

Calculating the formula for home loan EMI is essential to get the most from your home loan. You can apply for the right home loan when you know the EMI amount. Here is the formula for calculating home loan EMI without a calculator.

EMI= [P × R × (1 + R) ^ N]/ [(1 + R) ^ N-1]


  • P is the principal, also known as the loan amount
  • R is the rate of interest every month. For instance, if the interest rate is 10%, the rate of interest per month will be [10/(12×100)].
  • N is the total number of EMI (Equated Monthly Installment)

Is There Any Alternative Way of Calculating Home Loan EMI?

It is wise to calculate the home loan EMI before applying for a loan. However, the manual mode of EMI calculation can be strenuous. Thankfully, some reputed housing finance companies provide a EMI calculator for home loan on their website. You can conveniently enter a few numbers on the calculator to get a comprehensive estimate of the home loan EMI.

The Best Way to Use a Home Loan EMI Calculator

Here is how you can use a home loan EMI calculator before applying for a home loan:

  1. Open a home loan EMI calculator provided for free by some reputed housing finance companies
  2. Enter the Loan Amount in the box provided. The loan amount might be up to 90% of the property value.
  3. Enter the rate of interest. The interest rate depends on the borrower’s eligibility. Home loan eligibility depends on multiple factors, including credit score, monthly income, property location, age, etc.
  4. Enter the Tenure. The tenure or repayment term can be five (5) and thirty (30) years.

After entering the figures in the calculator, it calculates the EMI amount and displays it within seconds. Generally, lenders provide the ‘Apply for a Home Loan’ tab beside the result. Hence, you may click on that link to get redirected to the home loan application window.

Why Should You Use a Home Loan EMI Calculator?

A home loan EMI calculator provides you with an accurate estimate of the EMI amount. Knowing the EMI amount is crucial before you apply loan for home. Since home loan repayments can take as much as thirty years, proper planning is the key to extracting the maximum benefits from a home loan.

An apt knowledge of the home loan EMI amount gives you more power to plan your finances. Remember, a home loan is a collateral-based loan, and non-payment of loan dues might have negative consequences.


Alternatively, you can use the slider to adjust the numbers, depending on the type of calculator available on your lender’s website. After entering the three values, the calculator automatically displays the home loan EMI amount in seconds. 

What’s more, you can still change and adjust the numbers, and the calculator will show you instant and accurate results, helping you customize your home loan the way you want. Take advantage of personal home loans online with handy tools – home loan eligibility calculator and home loan EMI calculator that provide accurate and instant results. Enjoy high eligibility for home loans, a simple application process, minimal paperwork and low interest rates.

Applying for a home loan can be a blissful experience when you know the financial implications. A home loan EMI calculator lets you know the EMI amount beforehand and make sensible, wise decisions.

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