Get an accurate monthly home loan EMI estimate with our easy-to-use calculator.
In India’s booming real estate market, buying a home usually requires financial help. As more people try to purchase homes, an important tool is the home loan calculator. This calculator is extremely useful for figuring out monthly payments on home loans.
Simplify Home Buying with Smart EMI Options.
What is a Home Loan EMI Calculator?
A Home Loan EMI Calculator is a simple tool that helps you find out how much you need to pay every month when you borrow money to buy a house.
You need to enter the loan amount, the estimated interest rate, and how long you will take to repay the loan. When you put these details into the calculator, it will show you the monthly payment (EMI), the total interest you will pay, and the total amount you will repay by the end of the loan period.
How is Home Loan EMI Calculated?
The EMI formula is a mathematical equation used to calculate the fixed monthly payment required to repay a loan over a specified tenure at a certain interest rate. The formula is as follows:
EMI = [P*r*(1+r)^n]/ [(1+r)^n -1]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12 and converted to decimal)
- n = Total number of monthly installments (loan tenure in years multiplied by 12)
Example:
- Principal (P): ₹50,00,000
- Annual Interest Rate: 9% per annum
- Loan Tenure: 30 years
Step 1: Convert Annual Interest Rate to Monthly Interest Rate
r = 9/ (12*100) = 0.0075 (or 0.75% per month)
Step 2: Convert Loan Tenure to Total Number of EMIs
n = Loan Tenure (years)* 12
n = 30*12 = 360 months
Step 3: Plug the Values into the EMI Formula
EMI = [50,000*0.0075*(1+0.0075)^360]/ [(1+0.0075)^360 – 1]
Step 4: Calculate (1 + r)^n
(1+0.0075)^360 = 1.0075^360 = 13.267
Step 5: Compute the Numerator and Denominator
Numerator = 50,00,000 × 0.0075 × 13.267 = 50,00,000 × 0.0995 = 4,97,500
Denominator = 13.267 − 1 = 12.267
Step 6: Calculate EMI
EMI = 4,97,500/ 12.267 = Rs. 40,573 per month
How to Use Credit Dharma’s Home Loan EMI Calculator?
- Input the principal amount, interest rate, and loan tenure.
- Click calculate, and the tool computes your EMI instantly.
- See your monthly EMI, giving you a clear idea of your payments.
- Modify the amounts to see how different scenarios affect your EMI for better planning.
Benefits of Using Credit Dharma’s Home Loan EMI Calculator
- Understand Monthly Payments – See exactly how much you’ll pay each month.
- Organize Your Budget – Plan your finances with a clear monthly EMI.
- Compare Loan Options – Test different loan amounts, interest rates, and terms.
- Calculate Total Interest – Know the true cost of your loan over time.
- Assess Affordability – Ensure the loan fits within your income and expenses.
- Select Ideal Tenure – Choose a repayment period that works best for you.
- Track Repayment Progress – View a clear schedule of your payments.
- Make Smarter Decisions – Gain insights for better loan choices.
- Save Time – Get quick, accurate loan details instantly.
Factors Influencing Home Loan EMI
- Principal Amount: The total money you borrow. A larger loan means a higher EMI.
- Interest Rate: The percentage charged by the lender. Higher rates increase your EMI.
- Loan Tenure: The time you have to repay the loan. Longer tenures lower the EMI but may increase total interest.
- Credit Score: A good credit score can get you better interest rates, reducing your EMI.
- Processing Fees: Extra charges by the lender can add to your overall loan cost.
- Prepayment and Foreclosure Charges: Fees for paying off your loan early can affect the total amount you pay.
- Insurance and Add-ons: Costs for loan insurance or other services can increase your EMI.
- Repayment Frequency and Mode: How often and how you make payments can influence the EMI amount.
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Compare the Interest Rates From Top Banks
We have listed bank-wise returns to help you easily check out your monthly payouts and better plan your finances:
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.5% p.a. onwards | 8.5% p.a. onwards | 8.5% p.a. onwards |
| HDFC Bank | 8.7% p.a. onwards | 8.7% p.a. onwards | 8.7% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards |
| Kotak Mahindra Bank | 8.70% p.a. onwards | 8.70% p.a. onwards | 8.70% p.a. onwards |
| Punjab National Bank | 8.40% – 12.10% p.a. | 8.40% – 12.10% p.a. | 8.40% – 12.10% p.a. |
| Bank Of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. |
| Bank of India | 8.4% p.a onwards | 8.4% p.a onwards | 8.4% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
How to Reduce Your Home Loan EMIs?
Here are three simple ways to lower your monthly home loan payments:
1. Choose a Longer Tenure
What to Do: Extend the time you take to repay the loan.
Why It Helps: Spreading the loan over more years decreases your monthly EMI.
| Pros | Cons |
|---|---|
| Lower monthly payments | You pay more interest overall |
| More money for other expenses |
2. Make Prepayments
What to Do: Pay extra money towards your loan when you have extra funds.
Why It Helps: Reduces the principal amount, which lowers the interest and EMI.
| Pros | Cons |
|---|---|
| Lowers the loan principal | May have fees for fixed-rate loans |
| Can shorten the loan period or reduce EMI | Not ideal if your loan has a low interest rate |
3. Transfer Your Loan to a Lower Interest Lender
What to Do: Move your loan from one bank to another that offers a lower interest rate.
Why It Helps: A lower interest rate reduces your EMI.
| Pros | Cons |
|---|---|
| Lower monthly payments | May have transfer fees and other costs |
| Better loan terms | Could extend the loan tenure if not careful |
Use EMI Calculators from Top Banks
- LIC Home Loan EMI Calculator
- HDFC Home Loan EMI Calculator
- IDFC Home Loan EMI Calculator
- SBI Home Loan EMI Calculator
Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
EMI, or Equated Monthly Instalment, refers to the fixed payment amount that a borrower is required to pay to the lender each month until the loan period concludes.
The interest rate on your home loan directly influences the amount of your EMI. A higher interest rate increases the EMI and the total interest payable over the loan tenure. Conversely, a lower interest rate reduces the EMI amount, making the loan more affordable in the long term.
To calculate EMI, various factors including the principal amount, interest rate, and loan duration are considered. The EMI is derived using a specific mathematical formula that takes all these elements into account.
The EMI amount remains constant if the home loan is obtained at a fixed interest rate. However, for loans with a floating interest rate, the EMI can fluctuate over the loan tenure. Regardless of the interest type, making partial prepayments can result in lower EMI amounts.
Making prepayments towards your home loan can be highly beneficial. It reduces the principal amount owed, which in turn reduces the interest component of your future EMIs. This can lead to substantial savings on the total interest paid over the loan’s tenure.
Utilizing an online EMI calculator is beneficial as it offers precise estimations of your monthly payments swiftly, thereby saving you valuable time in financial planning.
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