How is The EMI of The Home Loan Calculated?

Calculating the EMI on a home loan is essential to estimate the appropriate loan amount. Borrowers can do so manually or by using online home loan calculators in India as per their convenience.

Manual home loan EMI calculation

Individuals can use the following formula for manual calculation of home loan EMI:

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

Here, P is the loan amount, R represents the rate of interest, and N is the credit tenor.

However, it can be difficult to use this formula as it is complicated and prone to errors. So, potential borrowers usually prefer to use an online house loan EMI calculator for this purpose. There are several online home loan calculators in India. Hence borrowers can use any one of these online tools as all of them perform with similar efficiency.

Steps to use an online EMI calculator

Below are the steps that individuals can follow to use an online EMI calculator:

Step 1: Visit the official website of a financial institution.

Step 2: Go to the ‘Home Loan’ tab and select the ‘Home loan EMI Calculator’ option.

Step 3: Enter the loan amount, tenor and interest rate.

Once done, individuals can see the results instantly on their screens. Also, these tools provide several benefits which make them convenient and easy to use.