10 things you must know about home loan EMI calculator

If you are planning to build your own home or buy a house, that’s a major financial milestone to prepare for. One of the best ways to fund this life goal is to avail a home loan. This kind of a loan is specifically designed for people who wish to buy or construct a house of their own. Home loans typically have lower interest rates than personal loans, because the house property for which the home loan is taken is used as collateral by the lending bank.

Before you apply for a home loan, you need to be aware of the amount of financing you need, and the rate of interest thereon. This will help you get a better idea of the EMIs you will have to pay for your loan. As a result, it becomes easier for you to make room in your budget for your home loan EMIs and plan your repayment schedule.

Wondering how you can calculate your home loan EMIs easily? A home loan calculator can help you with this. Here are 10 things you must know about a home loan EMI calculator. 

  • Online Availability 

There are many home loan EMI calculators available online. All you need to do is a quick online search, and you’ll find many options at your disposal.

  • Free to Use

You don’t need to worry about any charges to use this financial tool online. That is because home loan EMI calculators are available for use free of charge. All you need to do is enter the details needed, and you’re good to go.

  • Easy Input Details

You don’t need to fill in any complex details either. To calculate your home loan EMI, an online home loan calculator only needs three details — the loan amount, the repayment tenure and the interest rate. 

  • EMI Formula

The home loan EMI calculator uses the following formula to compute the amount you have to repay each month —

P x R x (1+R)N ÷ [(1+R)N-1

Here, P is the principal amount, R is the annual rate of interest and N is the loan tenure in years.

  • No Limits on Usage

There are no limits on the number of times you can use an online home loan calculator. You can use this financial tool multiple times, without any limits or charges. This helps you see how your home loan EMI varies as the input parameters change. You can use the tool several times to find the optimal loan amount and tenure for your needs.

  • Amortisation Schedule

The amortisation schedule gives you detailed insights into the portion of the principal and the interest that you repay with each EMI. Many online home loan calculators also give you the amortisation schedule, so you can get more details about your loan repayment schedule.

  • Better Financial Planning

A home loan EMI calculator makes financial planning easier for anyone who is planning to avail a housing loan. By knowing the amount of monthly repayments beforehand, you can set aside the required sum each month and repay your loan promptly. It also allows you to only avail loans that you are capable of repaying.

  • Loan Comparison

A home loan calculator also makes it easier for you to compare loan offers from different lenders. You can then choose the offer that is more favourable to you.

  • Beginner-Friendly Tool

Even if you are availing a home loan for the first time, you’ll find that this online tool is easy and simple enough to use. All you need to do is enter the three inputs needed. This makes the calculator extremely beginner-friendly.

  • Useful for Fixed Rate Home Loans

Home loan EMI calculators are best used for loans that carry a fixed rate of interest. In case of flexi rates, the rate of interest will vary based on the repo rate, making it harder to predict the interest rates over the repayment tenure.



This sums up the top 10 things you must know about home loan calculators. Keep in mind that you can use this online financial tool even if you are planning to avail a home loan balance transfer, because it can help you calculate your new EMIs effortlessly. 

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