All You Need to Know About Home Loan EMI Calculator 2022

All You Need to Know About Home Loan EMI Calculator 2022

3 September 2022

Buying a house is the biggest dream of every individual. However, most people don’t have the amount of money required to own their dream home. This is where a home loan comes into play. Today all the financial institutions give home loans to their customers. However, the basic loan amount and home loan interest rate varies from one bank to another. 


To simplify the numbers and calculations of interest rates, banks and several online financial consultants offer automated home loan EMI calculator. The results provided by this calculator tool help in comparing loans and selecting the best according to your requirements.

This blog provides crucial details about home loan EMI calculator


Different Factors Affecting Home Loan EMI Calculation 

When you use an EMI calculator for different loan schemes, you will realise that all the results vary and differ from each other. This happens due to the following:

  • Principal amount: This is the basic amount you need from the bank or financial lender.
  • Tenure: This reflects the number of months or years for which you borrow money.
  • Home loan interest rate: This is the rate at which the borrower gives you a loan. A higher rate of interest means a higher EMI or vice-versa.


Working of Home Loan EMI Calculator

This is an AI tool that uses an algorithm and mathematical formula to calculate home loan EMI. in addition, you also get the option to know the monthly loan repayment schedule for the loan tenure.


The formula used by the home loan EMI calculator is :


EMI = (P R (1+r)^n)/((1+r)^n-1), where P is the total principal amount of home loan, R represents home loan interest rate, and n stands for loan repayment tenure.

For your thorough understanding of the working of this formula, here is an example- suppose you need a home loan of ₹ 1 crore for a tenure period of 20 years, and the applicable home loan interest rate is 8%. According to the EMI formula, the monthly instalment for loan repayment will be ₹ 83,644. 


Steps to Use Home Loan EMI Calculator

You can easily access an EMI calculator on the official website of banks and financial advisers. To use this tool, you need to follow the steps mentioned below:

  1. Go to the EMI calculator page.
  2. Enter the principal money of the home loan.
  3. Select the duration of loan repayment.
  4. Fill out the home loan interest rate.

After you fill out all the details, the calculator will show the result of the calculation, which includes the monthly payment amount, total interest amount, and the entire money you will pay for the loan. In addition, the result here also gives you detailed information on the yearly payment you need to make for loan repayment.


Benefits of Home Loan EMI Calculator

EMI calculator is an efficient tool that offers the following benefits:

  • It provides a detailed breakup of the loan EMI for convenient loan repayment.
  • It helps you efficiently plan your monthly expenditure and save the necessary amount of money for loan repayment.
  • If you have additional loan repayment liabilities, the home loan EMI calculator provides information to take necessary measures for better management of the loan repayment procedure.
  • It makes the calculation convenient and error-free.
  • EMI calculators are free and easily accessible.
  • The results provided by these calculators are helpful in comparing loans offered by different financial institutions and selecting the best one to meet your needs.
  • EMI calculators for home loans can help you select an appropriate tenure according to your income and financial status so that you can avoid the chances of default.



A Home loan EMI calculator is a handy tool for successful loan repayment. Moreover, the detailed breakdown of EMI for the whole tenure is helpful in preparing a future plan for the steps you need to take to manage your finances.

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