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30 August 2021

How a Housing Loan EMI Calculator Helps you Plan Repayment

The housing market is doing well in 2021 as it attracted lots of buyers amidst all-time low rates. The real estate industry in India is forecast to reach US$ 650 billion by 2025. One of the reasons for such a drive is decreased interest rates.

A home loan is one of the significant external sources of financing to complete the challenging task of purchasing a house. When it comes to long-term repayment commitments like housing loan EMI, financial planning is much more necessary. To repay a home loan in a scheduled way, you can use an online tool known as the housing loan EMI calculator.

Home loan EMI calculation using formula

The home loan EMI (Equated Monthly Instalment) calculation formula is as follows:

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


 — Amount borrowed as loan

— Monthly interest rate

— Loan repayment term in months

Using this formula for manual EMI calculation involves a lot of time. Instead of manual calculations, you can use a housing loan EMI calculator for quick calculation of your EMIs.

What is a housing loan calculator?

A housing loan calculator is an online tool to calculate home loan EMIs before finalising a loan credit. A potential borrower can be eligible for a home loan of up to 5 crores. However, such a big amount is not easy to repay. Therefore, a borrower should apply for an amount that is easy to pay and afford easily. A home loan calculator can help you to find this affordable EMI.

How to use housing loan EMI calculator

To compute your EMI amount quickly, follow these three steps:

  1. Enter the loan amount that you want to apply for.
  2. Set the repayment tenor for which you want to take a loan and pay EMIs.\
  3. Enter the interest rate at which the loan is available for you.
And click. You are done. A few seconds it takes to show the results on your screen. Use it on your tab, smartphone or laptop. It is easily accessible.


Let us see the EMI calculation using the calculator with the following values:

  • The loan amount you applied for: 20 Lakhs
  • Repayment Tenor: 20 years
  • Interest Rate: 10%
You will get the following estimates based on your input:

Loan EMI


Total Interest Payable


Total Payment: Principal + Interest


Every estimate is quick and clear. With a manual formula, you will get only the EMI amount. On the other hand, the calculator is showing you total interest and total repayment amount also.

How home loan EMI calculator helps you

1. Easy Calculations

A borrower needs to repay a loan through EMIs, which is a fixed amount. EMIs continue till the loan tenure ends. Using the EMI formula as mentioned above, a calculation can be a cumbersome task. A home loan calculator can do such complex calculations on your input within a few seconds.

2. Accuracy

The calculator eliminates the chances of inaccurate estimates and saves your valuable time. The processing components of a home loan EMI calculator are different from the home loan eligibility calculator. Lending institutions provide different calculators at their portals. Make sure you use the housing loan EMI calculator for your EMI calculation.

3. Scheduled Repayment

One of the most significant uses of the calculator is financial planning and scheduled repayment. You can compute EMIs on a home loan before finalizing the loan. If you already know the EMI amount for a specific loan amount, you can make an informed decision that you will be able to pay such an EMI amount or not. If yes, you can proceed with the same loan amount and tenor; otherwise, adjust the amount and tenor per your repayment capacity.

Thus, potential homebuyers can make their life easy with pre-calculated EMIs using easy-to-use and free home loan EMI calculators.

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