Home Loan EMI made Easy with Home Loan EMI Calculators

To begin with, below is the formula to calculate home loan EMI.

When it comes to any form of loan, EMI is the most exploited term in this domain. Considering the fact that buying a house is the biggest investment any individual ever makes. Let us try to understand the entire working of home loan EMI.


L= Loan amount

i= Interest Rate (rate per annum divided by 12)

^= to the power of

N= Loan period in months

To put it in simple words, EMI or equated monthly installment is the amount borrower has to pay at regular intervals to the lender, until the principal amount borrowed is exhausted. The EMI amount is defined by two components, the principal amount and the rate of interest at which the loan is taken up.

Lot of people think that they pay equal amount of principal and interest when they pay their EMI regularly. However, that isn't the case. During the initial years of repayment, the interest is paid off and in the later years the principal amount is paid off as well.

Thus, if you think you have paid half of the amount borrowed from the bank in 5 years of 10 years of your loan tenure, that isn't the case. You have reduced the total interest component considerably and have paid the interest component.

Let us give you an example to make calculating home loan EMI easy with the help of home loan EMI calculator.

If the loan amount is Rs 1, 00, 000 that is been lent to you at the rate of 12% for a tenure of 12 months, then the EMI is calculated at the annualized rate of 12%. Therefore, the amount to be paid per month is Rs 8, 885 with the total interest component amounting to Rs 6, 619.