Home Loan EMI Calculation
Home loan EMI calculator is a tool that helps you to calculate home loan EMI. With the Bajaj Finserv’s housing loan EMI calculator, applicants can easily check the payable EMIs on home loan with only a few basic entries. To use the Bajaj Finserv’s home loan EMI calculator, enter your desired loan amount, tenor, and interest rate, either with the help of the slider or by inputting values directly in the boxes. The home loan calculator will subsequently show you your total payable interest, total payable, and EMI.
Benefits of using a Home Loan EMI Calculator
A Home EMI Calculator helps in financial planning for those looking to avail of a housing loan. One can check their EMI amounts by inputting the loan amount, tenor, and the applicable interest rate. This helps you assess if the EMI amount is in fact affordable and, by extension, helps you decide which loan amount and tenor are suitable for you as per your financial situation.
In this way, an EMI Calculator for a home loan helps you finalise the right home loan amount and ensure timely home loan payments. Use an Online EMI Calculator to check the home loan best suited to your profile.
Factors that affect your Home Loan EMI
Below are the major factors that affect the EMI of your home loan:
Principal: The principal refers to the amount you borrow from the lender. It is directly proportional to your EMIs, i.e., the lower the principal, the lower will be your monthly instalments and vice versa. You can use the home loan eligibility calculator to know the principal amount you are eligible for.
Rate of interest: The home loan interest rate is the rate at which the lender offers you the home loan. It is also directly proportional to the value of your home loan EMIs.
Tenor: The tenor is the time within which you repay your home loan. It is inversely proportional to your loan EMIs, i.e., the longer the tenor, the smaller your EMIs. But it is important to remember that a longer tenor translates to a high interest outgo.
Frequently asked questions
An EMI calculator helps you check your home loan EMI before you apply for a loan. It serves as a financial planning tool that enables you to make an informed decision. The Home Loan Calculator helps you complete complex calculations accurately as well as quickly.
The word EMI stands for ‘Equated Monthly Instalment’. It refers to the sum you have to pay every month towards the repayment of your home loan principal as well as interest. The amount varies as per the loan amount, tenor, and interest rate. You can reduce Home Loan EMI by increasing your tenor. We offer a tenor of up to 30 years.
Calculating the EMI amount on your home loan is quite easy using a Housing Loan EMI Calculator. Simply enter the loan amount you wish to take, tenor, and the rate of interest in the respective fields.
You can also calculate the EMI on home loan manually using the below formula.
Formula for EMI Calculation is -
P x R x (1+R)^N / [(1+R)^N-1]
where, P = Principal amount, N = Loan tenor in months, and R = Monthly interest rate
If the annual rate of interest is 6%, the value of ‘R’ will be 6/(12 x 100) = 0.005
On availing of a home loan of Rs. 40 lakh at an annual interest rate of 6.00% for a tenor of 240 months (20 years), the EMI will be calculated as:
EMI = 40,00,000 * 0.005 * (1 + 0.005)240 / ((1 + 0.005)240 - 1) = Rs. 28,657
- The total payable amount to lender is Rs. 28,657 * 240 months = Rs. 68,77,800
- The principal loan amount is Rs. 40 lakh
- The Interest to be paid is Rs. 28,77,800
As is evident, calculating the EMI manually is time consuming and challenging. Instead, use the Bajaj Finserv Home loan EMI Calculator to calculate your EMI with ease.
Our Home Loan Calculator is accurate, quick, and most importantly, easy to use. You only need to enter the loan amount, tenor, and interest rate to view the total interest payable, as well as your EMI. If you are finding the EMI amount too high, opt for a longer tenor. This can also help you in enhancing the eligibility of your housing loan.
Part payments go towards the repayment of the original sum borrowed. In other words, your principal amount reduces with part-prepayment. A lower principal amount also translates to lower interest outflow, since the home loan interest rate is now applicable on a smaller sum, and subsequently, lower Equated Monthly Instalments (EMI).
You can make the most of savings through an earlier home loan repayment by either reducing your tenor and becoming debt-free sooner or reducing your EMI amount and making your monthly obligation that much easier to bear. Use a home loan prepayment calculator to check your foreclosure/ prepayment amount. It is advisable to pay the amount beforehand, so you can plan your finances well in advance.
A home loan amortization schedule is a record of all the periodic payments on your home loan. Amortization is basically the procedure of repaying a loan through regular payments over a specified period. An amortization schedule is the total tally of loan payments showing the amount of interest and principal contained in each payment until the loan is repaid in full.
Home Loan repayment refers to the process of repaying your entire loan (principal plus interest) over the agreed-to timeframe. Your repayment primarily depends on the timely payment of your Equated Monthly Instalments (EMI). Your EMI amount depends on the loan amount, the tenor chosen, and the home loan interest rate.
To repay your loan earlier than planned, you will need to make part prepayments or completely foreclose the loan with one lump sum payment. In case you have surplus funds and choose to become debt-free sooner, use our home loan repayment Calculator to know the sum payable. This is important since a home loan is a sizable sum, which necessitates planning and research.
