Home Loan EMI Calculator

A home loan calculator helps you know the amount of EMIs that you will need to pay towards your Home Loan and helps make an informed decision. The Bajaj Finserv home loan EMI calculator also functions as a home loan interest calculator, as you will be able to know the interest amount due on your home loan, in addition to the overall EMI amount, in just 3 simple steps.

EMI stands for Equated Monthly Instalment. EMI is the monthly repayment that a home loan borrower must make to repay the home loan within the specified loan tenure.

The following table illustrates the equated monthly instalments on several home loan amounts with different tenures. The applicable rate of interest is 6.8%* onwards.

An EMI Calculator for home loan uses a simple formula to calculate your home loan EMI.
The formula used to calculate home loan equated monthly instalment is E = [P x R x (1+R)^N]/[(1+R)^N-1]

• Principal- The principal is the home loan amount that you avail from the lender. It is directly proportional to your EMIs - lower principal will lower your monthly instalments and vice versa.
• Rate of interest- The rate of interest is the rate at which the lender offers you the loan. It is also directly proportional to the value of your home loan EMIs.
• Tenure- The tenure is the time within which you repay your home loan. The tenure is inversely proportional to your loan EMIs - longer tenure makes the monthly instalments cheaper and vice versa.

The following table shows the EMI on home loan, total payable interest, and total payable amount for a loan of Rs. 1 lakh at an interest rate starting 6.8%* for different tenures.

Following table shows the home loan EMIs for various loan amount based on different tenures at 6.8%* onwards

• The home loan EMI that you can avail with home loan of Rs. 10 Lakh is Rs. 8,877 with 15-years tenure. The monthly instalment increases when you opt for a tenure of 5 years.
• EMI for a home loan of Rs. 15 Lakh is high of Rs. 29,560. When your loan tenure is 5 years. Your monthly instalment for home loan will be reduced to Rs. 13,315, if your loan tenure is 15 years.
• For a home loan of Rs. 25 Lakh, the Lowest EMI you can avail with 15-year tenure – Rs. 22,192. Decreasing the tenure to 5 years increases the monthly instalments to Rs. 49,267.

Good planning always ensures stable finances. Calculating the housing loan EMI in advance gives a better understanding of the amount of money you would have to spend every month. Hence, you can plan well and decide whether you are actually able to spare that much money or not.

Calculating the EMI amount on your home loan is quite easy. Simply enter the loan amount you wish to take, the tenure (in months, and not years) and the rate of interest, in the required fields.

Using the home Loan calculator is a very simple process. All you need to do is follow these steps–

1. Go the home loan calculator
2. Choose the loan amount, rate of interest, and tenure (in months)

That’s all! You will instantly get your home loan EMI amount along with the interest amount payable on the loan.

A home loan EMI calculator helps you to decide whether you can afford the financial commitment of a home loan in the long term. If you want, you can increase or decrease your EMI amount depending on the amount of home loan you are taking and the time period for which you'll be paying the equated monthly instalments.

A home loan amortization schedule is the table or record which details all the periodic payments on your home loan.

Amortization is basically the procedure of repaying a loan through regular payments over a specified period of time. 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.

EMIs have both principal and interest components. In the early period of the loan, the interest portion is higher than the principal component, for every EMI. In the later part of the home loan tenure, the principal component is higher than the interest portion. EMIs can be paid through ECS (Electronic Clearing System) which directly deducts monthly instalments from your account.

Part-prepayment brings down the principal amount, which in turn lowers the interest amount that you have to pay, which results in lower EMI amounts overall.

You can claim tax deductions under Section 80C on the principal amount repaid through your EMIs annually, up to Rs. 1.5 lakh. You can also get tax deductions under Section 24 on the interest component of the loan that you repay annually through your EMIs, up to Rs. 2 lakh.