Home Loan EMI Calculator

Plan your EMIs better by using Home Loan EMI Calculator.

What is a home loan EMI?

A Home Loan EMI (Equated Monthly Installment) is a fixed amount that a borrower pays each month towards repaying a home loan. It consists of both principal repayment and interest payment calculated over the loan tenure. This amount is predetermined based on the loan amount, interest rate, and loan tenure.

For example, if you take out a home loan of ₹50 lakhs at an interest rate of 8.5% per annum for 20 years, your EMI would be approximately ₹45,818. This amount remains constant throughout the loan tenure, allowing borrowers to plan their finances efficiently.

What is a home loan EMI calculator?

Our home loan EMI calculator makes it easy to calculate your monthly payments. This tool helps you make informed decisions about purchasing a new home by planning your cash flows effectively. Bajaj Finance offers home loans with EMIs starting from Rs. 733/lakh*and interest rates beginning at 8.50%* p.a., along with additional features like quick approval and disbursal, balance transfer facility and top-up loans. With a low interest rate and extended repayment tenure, Bajaj Finance ensures manageable home loan EMIs. Use our user-friendly home loan EMI calculator to determine your monthly payments, making the Bajaj Finserv Home Loan easier on your budget.

How to calculate home loan EMI?

Here are 3 ways you can calculate your home loan EMI:

1. Use Bajaj Finserv Home Loan EMI Calculator

You can calculate your home loan EMIs using our Home Loan EMI Calculator. All you have to do is select the loan amount, interest rate, and tenure. The home loan calculator will show your EMI payable, total interest, and the total amount payable including the interest and principal amount.

2. Home loan EMI calculation using Excel

Here are the steps to calculate your home loan EMI using Excel:

  • Open Excel and select a cell to display the EMI.
  • Use the formula "=PMT(interest rate/12, tenure in months, loan amount)".
  • Replace "interest rate" with your loan's annual interest rate.
  • Divide the annual interest rate by 12 to get the monthly rate.
  • Replace "tenure in months" with the loan tenure in months.
  • Multiply the loan tenure by 12 to convert it into months.
  • Replace "loan amount" with the total loan amount.
  • Press Enter, and Excel will calculate the monthly EMI.
  • Review the result to plan your finances accurately for your home loan.

3. Manual home loan EMI calculation

Home loan EMI calculation formula

EMI = P x R x (1+R)^N / [(1+R)^N-1]

where, P = Principal amount, N = Loan tenure in months, and R = Monthly interest rate

Home loan EMI calculation example

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 tenure 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

Features and benefits of our home loan calculator

Our home loan calculator is designed to simplify your financial planning by providing accurate EMI calculations. Here are the key features and benefits:

  1. Ease of use: The calculator is user-friendly, requiring minimal input to generate precise EMI figures. Simply enter the loan amount, interest rate, and tenure to get instant results.
  2. Financial planning: Understand the total interest payable over the loan tenure, enabling better financial planning and management of other expenses.
  3. Time-saving: Quickly calculates EMIs without the need for complex manual computations, saving you valuable time and effort.
  4. Transparency: Offers a clear breakdown of principal and interest components, ensuring transparency in your financial commitments.

Using our home loan calculator, you can make informed decisions, ensuring a smoother and more manageable home loan experience.

Factors that affect your Home Loan EMI

Below are the major factors that affect the EMI of your home loan:

1. Principal amount

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 installments and vice versa. You can use the home loan eligibility calculator to know the principal amount you are eligible for.

2. 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.

3. Tenure

Tenor is one of the most important factors when you are doing Home Loan EMI Calculation. It 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.

Home Loan Amortization Schedule

Assuming you are taking a home loan for Rs. 30 lakh for a tenure of 30 years at an interest rate of 8.50%. Below could be the sample amortization table for the same.

What is home loan amortization schedule?

A home loan amortization schedule is a detailed table illustrating the repayment process of a home loan over time. It outlines each periodic payment, breaking down the principal amount, interest component, and remaining balance. The schedule spans the entire loan tenure, showcasing how each payment contributes towards reducing the outstanding loan balance. It aids borrowers in understanding their repayment journey, including the gradual decrease in interest payments and the gradual increase in principal repayments as the loan progresses.

Year

Opening Balance

EMI*12

Interest paid yearly

Principal paid yearly

Closing Balance

1

30,00,000

2,76,809

2,54,130

22,679

29,77,321

2

29,77,321

2,76,809

2,52,125

24,683

29,52,638

3

29,52,638

2,76,809

2,49,944

26,865

29,25,772

4

29,25,772

2,76,809

2,47,569

29,240

28,96,532

5

28,96,532

2,76,809

2,44,984

31,824

28,64,708

6

28,64,708

2,76,809

2,42,171

34,637

28,30,071

7

28,30,071

2,76,809

2,39,110

37,699

27,92,371

8

27,92,371

2,76,809

2,35,778

41,031

27,51,340

9

27,51,340

2,76,809

2,32,151

44,658

27,06,682

10

27,06,682

2,76,809

2,28,203

48,606

26,58,076

11

26,58,076

2,76,809

2,23,907

52,902

26,05,175

12

26,05,175

2,76,809

2,19,231

57,578

25,47,597

13

25,47,597

2,76,809

2,14,142

62,667

24,84,930

14

24,84,930

2,76,809

2,08,602

68,206

24,16,723

15

24,16,723

2,76,809

2,02,574

74,235

23,42,488

16

23,42,488

2,76,809

1,96,012

80,797

22,61,691

17

22,61,691

2,76,809

1,88,870

87,939

21,73,752

18

21,73,752

2,76,809

1,81,097

95,712

20,78,041

19

20,78,041

2,76,809

1,72,637

1,04,172

19,73,869

20

19,73,869

2,76,809

1,63,429

1,13,380

18,60,489

21

18,60,489

2,76,809

1,53,408

1,23,401

17,37,088

22

17,37,088

2,76,809

1,42,500

1,34,309

16,02,779

23

16,02,779

2,76,809

1,30,628

1,46,180

14,56,599

24

14,56,599

2,76,809

1,17,707

1,59,102

12,97,497

25

12,97,497

2,76,809

1,03,644

1,73,165

11,24,333

26

11,24,333

2,76,809

88,338

1,88,471

9,35,862

27

9,35,862

2,76,809

71,679

2,05,130

7,30,732

28

7,30,732

2,76,809

53,547

2,23,262

5,07,470

29

5,07,470

2,76,809

33,813

2,42,996

2,64,474

30

2,64,474

2,76,809

12,334

2,64,474

0

Factors that affect your Home Loan EMI

Below are the major factors that affect the EMI of your home loan:

1. Principal Amount

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 installments and vice versa. You can use the home loan eligibility calculator to know the principal amount you are eligible for.

2. 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.

3. Tenor

Tenor is one of the most important factors when you are doing Home Loan EMI Calculation. It 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.

Disclaimer

Results generated by the calculator(s) are indicative in nature. The interest rate applied on the loan will depend on the prevailing rates at the time of loan booking. The calculator(s) are not intended to provide its users/ customers with results that are either certified by Bajaj Finance Limited (“BFL”) or are an obligation, assurance, warranty, undertaking or commitment, financial and professional advice by BFL, under any circumstances. The calculator(s) are only a tool that assists the users/ customers arrive at results of various illustrative scenarios generated from data input by the user/ customer. The use of the calculator is entirely at the risk of the user/ customer, BFL is not responsible for any reason, for any errors in any outcome resulting from the use of the calculator.

Frequently asked questions

What is a home loan EMI?

The word EMI stands for ‘Equated Monthly Installment’. It refers to the sum you have to pay every month towards the repayment of your home loan. It includes the principal amount as well as interest. The EMI varies as per the loan amount, interest rate and tenure. You can reduce your home loan EMIs by increasing your tenure. We offer a tenure of up to 40 years.

What is a home loan EMI calculator?

A home loan EMI calculator is a financial planning tool provided by financial institutions, allowing you to input loan amount, interest rate, and tenure to calculate Equated Monthly Installments (EMIs) accurately. By providing instant EMI calculations, this tool empowers you to assess your loan affordability, plan your budgets effectively, and determine the feasibility of taking on a home loan. It simplifies the complex task of manual EMI computation, enabling you to make well-informed decisions about your home loan borrowing needs.

When will my home loan EMI be due?

As the term rightly suggests, Equated Monthly Instalments (EMI) are due every month, and gradually reduce the principal borrowed throughout the selected tenure. You are obligated to pay your housing loan EMI on a fixed date every month, which is set at the time of loan disbursal. Missing an EMI payment could lead to penal charges, and will also impact your credit score.

What is a home loan Pre-EMI?

Housing loans are one of the most flexible credit options that are available to borrowers, to fund the purchase of a residential property. Often, depending on the borrower’s requirements, the lender can disburse the home loan amount in parts. Till the full loan amount isn’t disbursed to you, you are required to repay only the interest component of the principal loan amount. The amount you pay as the home loan EMI in the meanwhile is also called a home loan pre-EMI.

Borrowers only start paying full home loan EMIs, once the home loan principal amount is fully disbursed to them. Typically, a home loan tenure can stretch up to 30 years, giving borrowers the flexibility of choosing a repayment schedule as per their convenience.

What are the tax benefits of paying home loan EMIs?

A home loan is a tax-benefit credit option, which is also why many choose to buy a second property as an investment – allowing them to avail of home loan tax benefits through their second home loans as well. There are several tax benefits and concessions attached to paying home loan EMIs, such as:

Section 80C: You can claim a tax rebate on the principal component of your home loan EMI, up to Rs. 1.5 lakh every year
Section 24(b): You can claim a tax rebate on the interest component of your home loan EMI, up to Rs. 2 lakh every year
Section 80EE: You can claim a tax rebate on the interest component of your home loan, after you have exhausted the claimed cap under Section 24(b), up to Rs. 50,000, only if you are a first-time home buyer

You can calculate total tax payable based on your taxable income, expenses, age, investments and interest paid towards your home loan through income tax calculator.

How does home loan repayment work?

Home loan repayment refers to the process of paying back your entire loan (principal plus interest) to the lender over the agreed-to timeframe. Your repayment primarily depends on the selected tenure and the timely payment of your Equated Monthly Instalments (EMI). Your EMI amount depends on the loan amount, the tenure 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 foreclosure calculator to know the sum payable. This is important as a home loan is a sizable sum, which necessitates planning and research.

How can I reduce my home loan EMI?

There are several ways in which borrowers can reduce their home loan EMIs, with Bajaj Finserv. Eligible applicants who meet the home loan criteria can benefit from lower interest rates and longer tenure – bringing down their total cost of borrowing. Here are a few ways to help reduce home loan EMIs:

  • Scale up your down payment amount
  • Focus on boosting your credit profile and CIBIL score
  • Ensure maximum repayment capacity
  • Pay off all pending dues and obligations
  • Apply with a co-applicant to enhance your home loan application
  • Select the right property that passes the lender’s verification

You can also avail of a home loan balance transfer and transfer your pending home loan balance to Bajaj Finserv and repay the rest of your loan amount at a reduced EMI.

How do you calculate interest rate on a home loan?

An error-free and easy way to calculate interest on your home loan is by using the home loan EMI calculator. All you must do is open the home loan interest rate calculator tool available on the Bajaj Finserv website and enter the fields such as the interest rate, principal amount, and tenure. When you enter all the values correctly, you will not only find out the amount you will pay as interest but also the EMIs and the total loan payable by the end of your tenure.

What is a Home Loan Amortization Schedule?

The home loan amortization schedule is a record of all the periodic payments on your home loan. It is the total tally of loan payments showing the amount of interest and principal contained in each payment until the entire loan is repaid.

The home loan EMI calculator shows you the amortization table, broken down to show you the details of your ongoing home loan interest rate, principal amount, repayment tenure, and balance repayment amount.

What is the impact of part-prepayments on your EMI?

The part-prepayment facility on your home loan helps you to reduce your home loan EMIs. By making part-prepayments, you can save substantially on the overall interest payment, as you repay the full amount well before the end of the repayment tenure and you can calculate it through home loan prepayment calculator.

Is it good to reduce home loan EMI or tenure?

Existing home loan borrowers and new ones all have the same question, which is – what will bring down the cost of borrower faster – smaller EMIs, or a short tenor? There are several points to consider while making that choice.

How can I repay my home loan faster?

A home loan is a sizeable financial commitment and taking on one could mean that you will be repaying the loan amount for almost 25 to 30 years of your life. While the home loan repayment is still feasible and can continue along with your other financial developments, one can choose to repay their home loan faster, if their budget and repayment capacity allows for it. Here are two ways to do it:

How is the principal and interest component split, in an EMI?

The amount you pay as home loan EMI is made up of the home loan principal and home loan interest in parts. However, where you stand in your repayment tenure also plays a role in deciding how much of the home loan EMI is composed of the principal amount and how much is the home loan interest.

If you wish to see your EMI break-up, you can do so in two ways:

  • Manual calculations
  • Home loan EMI calculator

Manual calculations have a wider margin of error, as the formula is complex, and with bigger numbers, one may make mistakes in the calculations. Here is the formula to calculate the same:

Interest component = P x R

Where,

P is the pending principal loan amount

R is the home loan interest rate

And then, you can subtract the interest amount out of the EMI, to arrive at the principal component.

To complete these calculations without any errors, make use of an EMI calculator and get error-free results in seconds.

When does my home loan EMIs start?

Your home loan Equated Monthly Installments (EMIs) start from the month following the disbursement of the loan amount. The exact date may vary depending on the terms and conditions specified by your lender.

How does an EMI calculator help in home buying planning?

An EMI calculator simplifies home buying planning by providing instant calculations of Equated Monthly Installments (EMIs) based on loan amount, interest rate, and tenure. This allows prospective buyers to assess affordability, plan budgets accurately, and explore various loan options before committing to a purchase. By offering quick insights into repayment amounts, an EMI calculator aids in making informed decisions, ensuring that borrowers choose home loans that align with their financial capabilities and goals.

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