About Home Loan EMI Calculator
A home loan EMI (Equated Monthly Installment) calculator is a tool used to estimate the monthly payments required to repay a home loan. This calculator is commonly used by home buyers or existing mortgage holders to estimate their monthly repayments and determine their affordability.
The home loan EMI calculator typically requires inputs such as the loan amount, the interest rate, and the loan term. The calculator then uses this information to estimate the monthly payments required to repay the loan, including both the principal and interest components. The EMI calculation also takes into account any prepayments or additional payments made towards the loan.
The home loan EMI calculator can be a useful tool for individuals to plan their finances and make informed decisions about home ownership.
Home Loan EMI Calculation
Formula for Home Loan EMI Calculation:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
E: Equivalent Monthly Installment,
P: Principal or total loan amount,
r: Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
n: Number of monthly instalments or loan tenure in months.
*This formula excludes the home loan processing fee charged by the bank.