Home Loan EMI Calculator

Loan Amount

10,000

Rate of Interest (Annual)

5%

Loan Tenure

3 Months

Monthly EMI:

Principal Amount:

Total interest:

Total amount:

What is EMI?

EMI or Equated Monthly Installment is a fixed monthly payment that needs to be made by the loan borrower for the repayment of their home, car, personal, or any other loan. An EMI includes both your principal and the interest component, through which the entire loan amount is paid off within the stipulated number of months or years.

An EMI can be of two types: interest EMI and no-cost EMI. While most loans have interest levied on them like is usual, certain no-cost EMI plans are offered on e-commerce platforms such as Amazon, Flipkart, and Reliance Digital wherein you can purchase a product using EMI plans that have no interest levied on them. In such cases, usually, the retailer and the bank share the interest load as marketing expenses.

How to use BankKaro Home Loan EMI calculator online?

The online monthly BankKaro Home Loan EMI calculator is easy to use. You can calculate your EMI and total repayment amount within a few seconds.

  • Use the slider to set the loan amount, rate of interest (annual), and loan tenure.
  • The graph will show the share of interest and principal components in your repayment schedule.
  • The bottom box shows you your monthly EMI amount, principal amount, total interest, and total amount.

Factors affecting your home loan due amount

Your EMI or Equated Monthly Installment is dependent on a lot of factors including the ones mentioned above. You will need to understand them in detail before applying for any kind of loan.

Rate of interest

The annual interest rate is something that you need to observe carefully before applying for a new loan. Usually, secured loans like home loans and vehicle loans have lower interest rates in the range of 6-10%. On the other hand, unsecured loan interest rates for personal loans could be in the range of 10-25%, and for credit cards, even as high as 45%.

Loan tenure

The loan tenure is dependent on your repayment capabilities and the type of loan. Usually, large ticket loans like home loans and car loans have a higher loan tenure of more than 60-70 months. In the case of personal loans, the loan tenure begins from as low as 3 months.

Loan-to-Value (LTV) Ratio

Loan-to-Value (LTV) Ratio is one of the most important factors that determine your EMI. This is the percentage of the property’s value that is eligible to be availed as a home loan. It is an indicator of the level of risk the lender/ bank is willing to take when approving your loan. Thus, the lower the LTV ratio, the higher can be your rate of interest and thus your due amount.

Location of the property

In a home loan, the location of your property is crucial in determining your interest rate and your due amount. The rates are lower when the property is in a developed society with premium amenities, and goes down as the level of the locality and society dip. This is because value of properties in developed societies tend to rise and are thus low risk for the lender.

What is the Formula to calculate home loan EMI amount?

BankKaro uses this formula to calculate the total amount and EMI amount for your loan. EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.

  • Total Interest Payment = EMI * tenure in months.
  • Total Amount = EMI amount * No of EMI

Advantages of using BankKaro Home Loan EMI calculator

There are several advantages of using the BankKaro EMI calculator:

  • It is completely free of cost. BankKaro will never charge you a single rupee for using the EMI calculator, no matter the number of times you use it.
  • You will be able to calculate your EMI amount for your upcoming loan. It is always a good idea to know the amount you will be paying before you get a loan approved.
  • The loan calculator online is completely accurate and reliable.

Apart from home loan EMI calculator, BankKaro also has a Personal Loan EMI calculator, Vehicle Loan EMI calculator, Loan Against Property EMI calculator, and more.

FAQs

How is EMI amount calculated?

The EMI amount on your loan is calculated based on three major factors: Loan Amount – the amount of loan you avail; Rate of Interest – the annual interest rate applicable on your loan; and Loan Tenure – the months and years the loan has been availed for.

What is EMI calculator?

An EMI calculator is a tool that allows you to see your monthly EMI and the total amount to be repaid based on your loan amount, interest rate, and loan tenure.

How does the EMI calculator work?

The EMI calculator works using a simple formula which takes into consideration factors like your loan tenure, loan amount, and interest rate to find out your interest amount and the total amount payable in real time.

What is the use of EMI calculator?

Using the BankKaro monthly EMI calculator, you can know in advance the amount of EMI you will be paying for your personal loan, car loan, home loan, or any other loans. This will allow you to go for an amount and tenure that suits your capability to repay.

How is principal and interest calculated on EMI?

While principal in an EMI is the amount that you borrowed, broken up into equal installments, the interest element depends on the bank and the type of loan.

Are the calculators for home, car, and personal loans the same?

Yes, the calculators for home, car, and personal loans largely work on the same formula that we have implemented in our online EMI calculator.

Is the Equated Monthly Instalment amount shown by the calculator the same as that which the bank will ask me to pay?

Ideally, if the details entered are accurate, the EMI amount shown by the calculator should be the same as what the bank will ask you to pay. However, floating interest rates can change your EMI amount or loan tenure during the repayment period.

Is my loan EMI fixed or can it change over the loan tenure?

In a floating interest plan, the loan EMI can change over the loan tenure. On the other hand, the loan EMI is fixed in a fixed interest plan.

Is it good to pre-close a loan before the end of its tenure?

Preclosure of a loan is usually subject to a penalty charge. Before pre-closing your loan before the end of its tenure, always calculate whether the loan interest payments will be less than or more than the penalty being charged.

What is Floating Rate of Interest?

All loan interest rates are dependent upon the repo rate issued by the Reserve Bank of India. With changing market conditions, this repo rate goes up and down affecting your interest rates. Thus, most loans in the market have a floating rate of interest that goes up and down as market interest rates.

What happens if I fail to make an Equated Monthly Instalment payment?

If you fail to make an Equated Monthly Installment (EMI) payment, the response differs from bank to bank. You might be charged penalties, higher interest rates, or even get a credit default charge.

What happens if I fail to make an Equated Monthly Instalment payment?

If you fail to make an Equated Monthly Installment (EMI) payment, the response differs from bank to bank. You might be charged penalties, higher interest rates, or even get a credit default charge.

What is Home Loan EMI Calculation Formula?

BankKaro uses this formula to calculate the total amount and EMI amount for your loan. EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.

What are the Benefits of Home Loan EMI Calculator?

There are several benefits of using a home loan EMI calculator. These include ease of calculation of your upcoming home loan EMI, exact amount extraction, and the ability to flexibly view your changing EMI with modifications to tenure, amount, and interest rate.

What Factors Affect Your Home Loan EMI?

Factors such as Loan-to-Value (LTV) Ratio, loan tenure, location of property, and interest rates affect the due amount of your home loan EMI. Please make sure you take into consideration all of them before making the purchase.

What is Flexible and Fixed Home Loan EMIs?

Flexible home loans are the ones where the interest rate changes as per RBI’s central bank interest rate. It reduces and increases several times during the tenure of repayment. On the other hand, fixed home loan EMIs work on a fixed interest rate set during the start of the loan tenure. However, in most cases, fixed home loan interest rates are steeply higher given the risk of foregone future benefits to the lender.

What is a Home Loan Pre-EMI?

A home loan pre-EMI is the EMI amount that only consists of the interest amount of your loan. It does not include your principal amount. The lender may allow a home loan pre-EMI when your house or apartment is under construction. It allows you to pay off a certain amount with lower EMI amounts than usual. However, the lender will charge full EMI amount once the house has been constructed.

What are the Tax Benefits of Paying Home Loan EMIs?

The Section 80 EEA of the Income Tax Act in India provides income tax benefits up to an additional Rs 1.5 lakhs only on home loan interests paid during the financial year. This is over and above benefits attained under Section 24(b).

What documents are needed to avail a home loan?

Documents required to avail a home loan include ID proof, address proof, photographs, application form, proof of income, property documents, and salary certificate/ IT returns.

What is the EMI for 20 lakhs home loan for 20 years?

The EMI for a Rs 20 lakh home loan for 20 years tenure depends on the rate of interest, and whether the loan has fixed or flexible interest rate. To check the exact EMI amount, please use our home loan EMI calculator.

How can I pay my home loan EMI?

You can use several payment methods to pay your home loan EMI. Options like cheque, DD, netbanking, debit cards, credit cards, prepaid wallets, UPI, and more.

How much is the EMI for an Rs. 30 lakh home loan?

The EMI for a Rs 30 lakh home loan depends on the rate of interest and loan tenure, and whether the loan has fixed or flexible interest rate. To check the exact EMI amount, please use our home loan EMI calculator.

How to Reduce Home Loan EMI?

To reduce your home loan EMI, you can trying increasing your EMI amount, adding an extra EMI each year, transferring your loan to a new lender with a possibly lower interest rate, shift from fixed to flexible interest rate, or increase the tenure.

How much home loan can I get if my salary is 50000?

While salary is a key component in determining sanctioned home loan amount and interest rate, the biggest factor is the value of the property and the Loan-to-Value (LTV) ratio.