BankBazaar’s home loan Equated Monthly Instalment (EMI) online calculator is a free financial tool that helps home loan borrowers plan and manage their loan repayments. The only data you need to input into the calculator are your desired loan amount, interest rate, and tenure. The calculator will then display the precise amount that will have to be paid every month as EMI, thus helping you plan your monthly budget for months at a time.
You can use the calculator any number of times for free. This especially comes in handy any time there is an update in the interest rate and you would like to recalculate your EMI.
Once you hit the ‘’Calculate’’ button, the data displayed on screen includes not just the EMI with a breakup of the principal amount and interest amount, but also an amortization table and bar graph with details of the EMI across the entire loan tenure. All this data will be calculated and displayed within seconds saving you valuable time, thus making BankBazaar’s home loan EMI calculator a helpful financial resource for all home loan borrowers.
Monthly amount paid to your Home Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)1||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
The loan amount required to buy or construct your dream home is offered at an attractive home loan interest rate, provided you fulfil the eligibility criteria laid down by the respective lender. Here, we have compiled a table wherein the lowest interest rate and the home loan EMI (Equated Monthly Installments) payable by you for every lakh is calculated with the above home loan interest calculator.
|Loan Amount||Rs. 25,00,000|
|Interest Rate||8.40% p.a.|
|Monthly Installment||Rs. 18,935|
|Total Interest Due||Rs. 20,44,365|
|Total Amount Payable||Rs. 45,44,365|
Formula for Home Loan EMI Calculation - EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
E - Equated Monthly Installment,
P - Principal or 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 doesn’t include the home loan processing fee charged by the bank.
Mr. Patra borrowed a home loan amount of ? 3,500,000 (Principal amount or P) from a reputed bank. The rate of interest (R) associated with the loan stands at 8.65% p.a. The tenure of the loan (N) is 360 months for 30 years
After you apply the formula to calculate your home loan EMI, the monthly instalment amount comes up to ₹ 27,285.
P = 3,500,000
R = 8.65%
N= 30 years or 360 Months
Interest Rate Applied = 8.65%
Monthly EMI = Rs 27,285
EMI Paid for the Year = Rs 27,285 * 12= Rs 327,419
Calculation of home loan EMI is a simple method using an excel spreadsheet. In order to do so, three variables of a housing loan are utilised, namely, rate of interest, period, and loan amount. It must be noted that the rate of interest should be calculated on a monthly basis.
For example, if the rate of interest is 12%, it should be calculated as 12%/12 = 1%. The period represents the total number of EMI payable.
In order to calculate EMI, click on the “=” symbol, type ‘PMT(the rate of interest, period, loan amount)’, and click enter. The excel sheet will the produce an amount in a negative value. This indicates the cash flow that the borrower will have to incur. This is the EMI that a home loan borrower would have to pay.
For example if your loan amount is 5 lakh for 2 years at 12% p.a.the formula to calculate EMI is as follows.
=PMT(12%/12, 24, 500000)
There are many benefits of using the home loan EMI calculator tool provided by BankBazaar. They are listed below:
The advantages of using the Home Loan EMI calculator offered by BankBazaar are as follows:
When calculating your EMI, the calculator includes all the parameters that impact it. Let’s take a look at the various factors that affect your monthly repayments:
Your housing loan EMI is usually a fixed amount. But there are certain circumstances under which it can change. Let’s take a look at some of these instances:
Flexible Home Loan EMIs - If you have opted for flexible EMIs, such as in the case of step-up or step-down property loans, then there will be a change in your loan EMIs. In the case of step-up loans, your EMI will gradually increase over the tenure. In the case of step-down loans, your EMIs will decrease as time passes.
Partly Disbursed Loan - In the case of partly disbursed loans, the pre-EMIs will increase with each disbursement.
Home Loan Prepayment - Prepayments impact your EMIs as well. You can either choose to reduce the EMI for the same loan tenure or reduce the loan tenure and keep the EMIs constant. The latter is more beneficial since you will pay less interest.
Rise in the floating interest rate: Whenever the repo rate changes, the floating rate of interest also changes. If the floating rate increases, the lender will normally increase the loan tenure while keeping your EMI the same. If the new tenure exceeds the maximum period permitted, then the bank may increase your EMI.
In some cases, the lender will disburse the home loan amount in stages. When this happens, you have to start paying your EMI only when you get the final amount and the whole loan has been disbursed. Till this date, you have to pay only the interest applicable on the partly spent amounts. This is known as pre-EMI. Once the loan gets fully disbursed, the pre-EMIs will stop and, you have to start paying your regular EMIs.
However, a wiser option would be to opt for a full EMI payment, as it ensures that you have already paid down a portion of the remaining loan amount at the time of possession.
Taking a loan to buy a house can be expensive, but it also has certain benefits, especially when it comes to taxes. The government offers tax reliefs via the Income Tax Act of , 1961 on the EMIs you pay every year. These are as follows:
There were slight changes made to the home loan tax benefits under the new tax regime, which were announced during the Union Budget 2023 by Finance Minister Nirmala Sitharaman.
The majority of other deductions, including those for home loans, house rent allowance (HRA), etc., are not available in the new tax regime, despite the introduction of a standard deduction of Rs.52,500.
The most significant pronouncements concern raising the tax slabs under the new system. For instance, the exemption threshold has increased from Rs.2.5 lakh to Rs.3 lakh under the new system. Also, the income threshold with a 10% tax has been raised from Rs.5 lakh to Rs 7.5 lakh and Rs.6 lakh to Rs.9 lakh.
|Income Tax Slab||Tax Rate|
|Up to Rs.3 lakh||Nil|
|Above Rs.3 lakh - Rs.6 lakh||5% of the total income that is more than Rs.3 lakh|
|Above Rs.6 lakh - Rs.9 lakh||10% of the total income that is more than Rs.6 lakh|
|Above Rs.9 lakh - Rs.12 lakh||15% of the total income that is more than Rs.9 lakh|
|Above Rs.12 lakh - Rs.15 lakh||20% of the total income that is more than Rs.12 lakh|
|Above Rs.15 lakh||30% of the total income that is more than Rs.15 lakh|
EMI stands for the 'Equated Monthly Installment', which is the sum you will pay to us on a particular date every month till the credit is reimbursed in full.
Loan amortization is the process of paying off debt throughout the course of the loan in regular instalments. An amortization schedule for a mortgage is a table that includes information on the principal, interest, and payback amount.
Equated Monthly Instalments (EMI) are payments made every month that, throughout the chosen tenure, steadily lower the principal borrowed. You are required to make your monthly home loan EMI payment on a specific day that was established at the time of loan disbursal.
You can use BankBazaar Home Loan EMI Calculator end number of times.
Yes, based on the details provided by you, the numbers shown are correct and accurate.
Yes, you can use the Bankbazaar home loan EMI calculator for free. There is no charge levied on using it.
Yes, a home loan EMI calculator will help you determine the EMI payable based on different parameters provided and help you choose the best policy for yourself.
Absolutely, provided you take out a home loan with a fixed interest rate. Your EMIs will change over the tenor if you have a house loan with a fluctuating rate of interest. In either scenario, making a partial prepayment will lower your EMIs.
Yes, your credit score will decrease if you do not pay your EMI on time.
No, there is cost involved for using BankBazaar Home Loan EMI Calculator
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