Top 7 Things You Must Know About Home Loan EMI Calculator


Even after finding reliable financial institutions granting home loans, you may want to know about the monthly instalments that you need to pay. The math behind home loan EMI calculation is very technical, and if you are unaccustomed to it,  you will not understand it.

Thankfully, you can easily calculate it using a home loan EMI calculator.

7 Home Loan EMI Calculator Facts

  1.    Quick Calculation

You can use a home loan calculator to simplify and expedite your home loan EMI calculation. The process of manual calculation is time-consuming and difficult, as it involves powers. You can calculate the home loan EMI by simply entering the principal, interest rate, and tenure of repayment on an online calculator.

The formula for calculation is ‘E=P*r*(1+r) ^n/((1+r) ^n-1)’, where E denotes EMI payment, P denotes the principal, and n denotes the time duration.

  1.    Better Judgment On The Loan Amount

Higher loan amounts with a lower duration for repayment means higher EMIs. You need to know the amount of EMI you can afford. By changing the values on the home loan calculator, you can find the loan amount that suits your needs.

A time-tested strategy can help you to stay in the safe zone; by balancing monthly instalments and the duration of payment. You may have to pay a penalty for the complete prepayment of loans before the stipulated time.

  1.    Knowledge About Amortisation

Home loan calculators can help you to understand the division of the EMI payments between paying off the principal loan and clearing the interest on the principal. The amortisation schedule will help you to realise how much balance of the loan amount you still need to pay.

  1.    Types of Interest Rates Offered 

While lenders often calculate home loan EMI using fixed rates, floating interest rates change the value of base rates, and can be difficult to figure out without using a loan calculator. Any disturbance in one rate will require you to rework the entire EMI scheme calculation.

  1.    Loan Availability and Tax Calculations

A home loan EMI calculator can help you find out if you are eligible for a loan, the EMI you need to pay,  and the percentage of the property you can finance through the loan. Some EMI calculators help you to calculate local and state taxes, insurance costs, and loan EMI.

  1.    Availability 

You can find online home loan calculators on the websites of financial corporations granting such loans. You can also find applications that are suited for the purpose. By filling up simple queries, you can easily find out the EMI.

  1.    Data

You fill up a lot of data while using online home loan calculators, which you can track in the loan agreement. The data includes your personal information, your financial information, property value, and more. You need to be aware that the data is available for financial institutions to use.


While it is not difficult to acquire a home loan, by not using a home loan EMI calculator, you will only make matters worse.

A loan calculator will help you find the information regarding the loan, judging the loan based on the EMI, down payment, and interest rates, and help you to choose the best option available.

Also Read: 

What is the minimum CIBIL score required for a plot loan?

Banks NBFCs – Know About Different Types Of Home Loan In India

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