Home Loan EMI Calculator

Getting a personal home today is a hectic as well as expensive task, but also necessary at the same time. It may cost years of savings to get a single house for yourself. Let’s take a look at a case, you are 30 years old and married with a limited income. You are living in a rental house, and at the same time, you worry about building an asset for your family. But it may cost years of hard work, and then you will be able to get a house. Inflation is the other problem.

That’s why many agencies and banks are offering a house financing scheme by which you can get your own house without having the full amount, which is also known as a house loan. You get the loan to get your dream home, and then you pay for it in installments, and the lender will get its profit in the form of interest. In this article, I will explain all about Home Loan EMI Calculator and how you can calculate Home Loan EMIs for better financial planning.

What is Home Loan EMI Calculator

The home loan monthly EMI calculator or house loan EMI calculator is a tool to calculate the amount of Equated Monthly Installment, consisting of the portion of principal amount and the interest on the loan, which you have to pay each month. It works by simply adding the required values.

In India, day by day, house prices and house loans are increasing, due to which it is becoming difficult for the middle to balance the expenses with EMIs. That’s why the loan EMI calculator in India is of great importance, as it helps to keep your budget in check with EMIs. It not only calculates the monthly EMIs for its users but also helps in determining the overall loan affordability to make wiser decisions.

How to Calculate Home Loan EMI?

The EMI calculator for home loans is undoubtedly a convenient and simpler tool, but it may be possible that you have no access to the internet and need to calculate the EMI for a home loan. That’s why, before moving forward on how to use the EMI Calculator, I want you to learn the manual way of calculating the house EMI. 

Formula to determine Home Loan EMI amount

It is done by using a simple mathematical formula,

For Example, with P = ₹50,00,000, annual rate = 8.5% (R = 0.007083), N = 240, the EMI will be equal to ₹43,391 using the formula mentioned above. 

Another simpler way to calculate the mortgage loan EMI you can download our Home Loan EMI Calculator Excel, which will work as an offline tool and comes in handy when you don’t want to go online. You can download it by clicking on the link below:

Home Loan EMI Calculator Excel 

You can also read our article on EMI Calculation on Excel Tutorial to get info on how you can make your own EMI calculator on Excel.

How to use the Home Loan EMI Calculator?

The EMI Calculator for home loans is very simple and easy to use. So, simply follow these generalized steps:

1. Visit our home loan EMI calculator page.
2. Select Home Loan Calculator from Calculators
3. Enter the required values in the first tab: Home Value (HV), Margin or Down Payment% (DP), and Loan Insurance (LI).
4. Adding these values will automatically calculate the initial loan amount, which is equal to HV+LI-DP.
5. Secondly, add the Interest rate and the Loan tenure in Years or Months. It will calculate the monthly EMIs on the loan.
6. To calculate overall payments, add other values if mentioned in your plans; these may include Loan Fees & Charges.
7. Add Homeowner Expenses that significantly affect the overall payments, such as One-time Expenses, property taxes/year, home insurance/year, and maintenance expenses/month.
8. There is also an option where you will write your start month and year to generate an amortization schedule.
9. In case of prepayments, add values in the last tab of Partial prepayments

Home Loan Benefits

It is easier to purchase a home in India because it has several advantages over taking a home loan:

• Tax Deductions: Section 80C and 24(b) state that a deduction can be made on the principal and interest payments that the borrower makes.
• Lower Interests: The interest rates on home loans are low, like personal loans, and the home loan interest rate ranges between 6.5%-12%.
• Long Tenure Options: A maximum of 30 years, which reduces monthly EMIs and increases the ease of financial flow.
• Gain Equity: Payments assist you in having something that will appreciate.
• Government Programs: Eligible buyers may receive such benefits as PMAY subsidies.

These advantages lead to an increased desire among more people to acquire housing loans.

How does EMI Calculation Help in Planning the Home Purchase?

In India, with the increasing progress of real estate and land rates, it has become a challenging task to get your own house. Here, tools like the India EMI home loan calculator come in handy in planning and scheduling your monthly payments, house loan EMIs, along with other expenses.

We do not just help you in calculating your monthly EMI for a home loan, but also offer other features like Loan Comparison and an affordability and eligibility check.

Home Loan EMI Calculator Benefits & Features

It does not just help you in calculating your monthly EMI for a home loan, but also offers other features like a mortgage eligibility calculator and an affordability check. All the features are explained below, which help in planning the home purchase.

• Eligibility Calculator: To check your loan eligibility, Home Loan Calculator also offers a home loan eligibility calculator. By asking for your monthly income, existing EMIs, interest rate, and loan tenure, it determines how much loan you are eligible for and what the maximum affordable limit for your EMIs is.

• Affordability: Financial experts say that your monthly EMIs may not exceed 35% of your income. This total helps you determine whether the home loan EMI is affordable or not. It will ask to input your income, EMI for home, your monthly expenses, interest rate, and tenure, and then it will calculate itself how much of your income is gonna spent on these EMIs and also provide remarks whether it is good or bad for you.

EMI Calculator Benefits

The India house loan EMI calculator is of great importance and has numerous advantages for borrowers in India.

• Accuracy and Speed: It provides you with accurate EMI estimates immediately, which saves you time, as opposed to computing it manually.
• Flexibility: The house loans provide flexibility in terms of allowing users to test the available loan options in terms of loan amount, loan duration, and interest rates.
• Financial Planning: Displays the interest and total cost of the loan, and this assists you in deciding whether you can afford it or not.
• Extra Tools: Most of them are equipped with facilities to compute prepayments or amortisation schedules, hence simplifying decision-making.

These are the features that make the calculator a necessity for anyone considering taking a home loan in the Indian competitive market.

What is Home Loan Amortization Schedule?

A housing loan EMI calculator amortization schedule is a table that shows in detail how EMIs should be paid each month. It breaks down the components of EMIs (Principal and Interest) over the loan tenure. This table also shows how the EMI balance will gradually reduce over time. This table is very helpful in keeping the EMI repayments in check, and for borrowers to manage their finances according to EMIs.

Below is an Example of Home Loan Amortization Schedule.

What is a Pre-Approved Home Loan?

A pre-approved home loan is an agreement by a borrower and a lender where the home buyer is granted a pre-approval by the lender according to their credit score, income, and financial history prior to selecting a property. It displays the maximum amount of money that you can borrow, which simplifies the process of making purchases.

This is a three to six-month approval that gives the buyers increased bargaining power when negotiating with the sellers. It does not require property details at once, as complete approval does, but it assists with budgeting, relying on such tools as the India home loan EMI calculator.

How to Reduce Home Loan EMI Amount

You can also reduce your Home Loan EMI amount to reduce the financial burden on yourself. There are several ways to do this:

• Extend Loan Tenure: You can ask your lender to increase the loan tenure, such as the amount you have to pay in 5 years, you can get it divided into 7 years or more. But, as a result, the total interest will increase.
• Make Prepayments: You can make a head start by making a prepayment. Like you may have some savings that you can use to reduce the total principal amount, and then you can EMI the rest of the amount, which will reduce the monthly EMI amount.
• Refinance to Lower Rate: different lenders and banks have different rates of interest; you can opt for the one with a lower rate of interest.
• Use Money Wisely: You can use the bonuses or inheritance yo get to pay for the EMIs in advance ot to make a prepayment to reduce the overall EMIs.

There may be some prepayment penalties; ask your lender about it before making any prepayment.

Friendly Asked Questions

Conclusion

The house loan EMI calculator India is a valuable instrument in determining how to navigate the complex world of housing financing. When buyers are aware of EMIs, amortisation, and ways of maximising the payments they make, they can make intelligent decisions. It is easier to own a home because of low interest rates charged on house loans and tax breaks. Always seek individual attention from the lenders to ensure that there is no problem in your home-buying experience.