Home Loan EMI Calculator Feb 2020

Factors affecting Home loan EMI

Home Loan EMI can be calculated using online Housing Loan Calculator which takes into account factors such as loan amount, rate of interest and the tenure for which you are planning to avail the loan.

• Loan amount – is the amount you want to borrow to fulfil your needs. ‭Home loan amount depends on value of the property. Higher the loan amount, higher will be the EMI.
• Rate of interest – is the interest charged on borrowed loan amount and is one of the component of monthly EMI along with principal repayment . Lower the home loan interest rate, lower the EMI.
• Loan Tenure – Longest loan tenure available across banks in India for buying a house on loan is 35 years, subject to borrower’s current age and retirement age.

Housing Loan Interest Calculator
You can calculate the interest you will pay over the loan tenure, especially in long tenure home loans of 20-35 years using a EMI calculator which can also be called as Interest Calculator. Longer the loan tenure, higher will be the interest charges you will pay.

Following table provides a comparison of EMI and interest to be paid on a Rs. 1 lakh loan at different tenures:

Calculated Results for Home Loan EMI	5 years	10 years	15 years	35 years
EMI for a loan amount Rs. 1 lakh at 7.90%	₹ 2,023	₹ 1,208	₹ 950	₹ 703
Total amount you pay back to the bank including principal and interest	₹ 1.21 Lakh	₹ 1.45 Lakh	₹ 1.71 Lakh	₹ 2.95 Lakh
Interest you have to pay during the loan tenure	₹ 21,380	₹ 44,960	₹ 71,000	₹ 1.95 Lakh

• At the lowest home loan rate of 7.90% the lowest EMI for maximum tenure of 35 years is Rs. 703 per lakh. You will pay an interest of Rs. 1.95 Lakh over a period of 35 years.
• If you decide to take a loan for 15 years only, you will pay a higher EMI of Rs. 950. However, interest calculation comes to only Rs. 71,000 over a period of 15 years, which is significantly lower than the calculated amount for a 35 years loan.

Housing Loan EMI are equal monthly installements that you pay to the bank to repay your loan. EMI is calculated using three parameters of loan amount, tenure and interest rate of the loan. The table below provides a comparison of EMI for different loan amount and tenure at today’s best interest rate of 7.90%.

EMI for various home loan amounts	15 years	20 years	25 years	35 years
Rs. 16 Lakh	Rs. 15,198	Rs. 13,284	Rs. 12,243	Rs. 11,629
Rs. 20 Lakh	Rs. 18,998	Rs. 16,605	Rs. 15,304	Rs. 14,536
Rs. 25 Lakh	Rs. 23,747	Rs. 20,756	Rs. 19,130	Rs. 18,170
Rs. 30 Lakh	Rs. 28,497	Rs. 24,907	Rs. 22,956	Rs. 21,804
Rs. 50 Lakh	Rs. 47,494	Rs. 41,511	Rs. 38,260	Rs. 36,340

• Today’s lowest EMI for a Rs. 16 lakh home loan is Rs. 11,629 at the lowest rate of 7.90% and maximum tenure of 35 years. EMI for Rs. 16 lakh home loan is Rs. 15,198 taken for a shorter period of 15 years.
• Current EMI for Rs. 25 lakhs loan is Rs. 18,170 and EMI for Rs. 30 lakh loan is Rs. 21,804 for a 35 year loan at the minimum interest rate.

In summary, higher loan amount taken for a shorter tenure will translate into high EMIs compared to a smaller loan amount taken for a longer tenure.

Home Loan EMI Calculator Formula

Home Loan EMI is calculated using the mathematical formula
P*r* (1+r)^n/([(1+r)^n]-1)
In above formula, P is the loan amount that you want to borrow
r is the rate of interest per month 
n is the tenure of loan repayment in months
To calculate Home Loan EMI, you can also use an online home loan calculator in which you need to input the the loan amount, rate of interest and the tenure for which you want to borrow and get the EMI and interest amount results on an immediate basis.

Why should you use online home loan calculator?

Borrowers who are not comfortable with difficult calculations, find it easier to estimate loan EMI by using EMIs calculators as it gives correct results and allows you to compare EMI on different home loan schemes instantly.

• EMI calculator saves your time by calculating EMI in seconds
• EMI manual formula is complex and chances of wrong calculation are high which may lead you to take a wrong decision. This can easily avoided by using an online EMI calculator.
• Any home loan borrower should know their EMI in advance as this is the amount that they have to pay to the bank every month from their income.
• The calculator allows borrowers to compare multiple EMIs for different loan tenures as well as rates and choose the loan EMI scheme that suits their monthly budget.

What is home loan amortization calculator?

An Amortization schedule gives break-up of the monthly EMI that goes towards repaying your loan amount and pay an interest on your home loan.

While each EMI is equal, the components of EMI that is the interest payment and principal payment are not the same every month. In early days of repayment, interest component is high and principal component is low. This is the reason that many times when you decide to prepay your loan during the first few years, you realise that you have repaid a very small proportion of your loan despite paying regular EMIs for years.

On an average, you repay back only 3 - 4 % of your loan in year 1 of taking a home loan and not more than 20 - 21% of your loan till year 5. Hence, it is important to understand your Amortization table, before taking a loan.

Illustration: How to read an Amortization schedule

Suppose you take a house loan of Rs. 1,000,000 for 15 years for the construction of your house at an interest rate of 8.50%. EMI calculated is Rs. 9,847 and total annual EMIs to be paid is Rs.118,169. The EMI schedule of your home loan for next 15 years (from January 2020 to December 2034) is explained below in the table -

Amortization Schedule for a Home Loan of Rs. 10 lakh over the 15 year period
Year	Interest paid during the year (as a % of annual EMIs)	Principal repaid during the year (as % of annual EMIs)	Cumulative principal repayment (in %)
2020	71%	29%	3.4
2021	68%	32%	7.2
2022	65%	35%	11.3
2023	62%	38%	15.8
2024	59%	41%	20.6
2025	55%	45%	25.8
2026	51%	49%	31.6
2027	47%	53%	37.8
2028	43%	57%	44.6
2029	37%	63%	52
2030	32%	68%	60
2031	26%	74%	68.9
2032	19%	81%	78.3
2033	12%	88%	88.7
2034	4%	96%	100

• In the above illustration, on a home loan of Rs. 10 lakh, EMI calculated is Rs. 9,847. However, at the end of year 1, only 30% of your EMIs are used to repay the loan with the remaining 70% going as interest payment. Hence, you end up repaying 3.4% of the loan amount of Rs. 10 lakh despite paying 12 EMIs during first year.
• In year 2024 (year 5), on the same loan, interest comprises 59% of total EMI payments with the rest 41% constituted by principal repayments. Upto year 5, you cumulatively repay only 20.6 % of your total loan after paying EMIs for 5 year or 60 months. If you decide to close or transfer your loan at this stage, you will have to prepay 79.4% of our original loan amount.
• In year 15, interest component is around 4% while principal component is around 96%. Upto year 15, you have cumulatively repaid 100% of your total loan.

Home Loan Prepayment Calculator

Prepayment calculator shows your savings as every prepayment you make have an impact on your EMI and tenure. Part prepayment is a amount that you pay above your EMI when you have surplus money with yourself. When you part prepay your loan, banks will either allow you to reduce your EMI with the same tenure or keep the EMI same while reducing the repayment tenure as explained in the illustration below:

We have explained the way EMI or tenure re-adjust after part pre-payment of housing loan in the illustration below: 

Suppose you take a loan of Rs. 10 Lakh for 10 years at an interest rate of 8.50%. Your EMI of the loan is Rs. 12,399 per month and annual total of EMI is Rs. 1.48 lakh. This is how your original loan schedule looks like till Year 5. On loan amount of Rs. 10 Lakh, you make payment of Rs. 12,399 every month and annual payment of Rs. 1,48,788. By the end of year 5, you have outstanding principal of Rs. 6.04 lakh and you have to pay another 60 EMIs to fully pay down your loan. The original schedule of you loan till year 5, has been shown in the table below:

Original Schedule
Loan Amount	Rs. 10 Lakh
Tenure (in months)	120
Interest Rate	8.50%
Monthly EMI, Rs.	12,399

Loan schedule	Principal repaid	Principal outstanding
Year 1	66,327	9.33 Lakh
Year 2	72,190	8.61 Lakh
Year 3	78,571	7.82 Lakh
Year 4	85,516	6.97 Lakh
Year 5	93,075	6.04 Lakh

Now at the end of year 5, you have surplus amount of Rs. 2.50 Lakh and you decide to prepay the loan. You have two options:
Option 1: Reduce your loan tenure and keep your EMI same
Option 2: Reduce your EMIs and keep the loan tenure unchanged

Option 1: Reduce your loan tenure and keep your EMI same

If you have Rs. 2,50,000 as surplus amount and decide to keep the EMI same and reduce the tenure, this is what will happen.

At the end of 5 years, when you prepay an amount of Rs. 2.50 Lakh, outstanding principal is reduced to Rs. 3.54 Lakh as comparison to Rs. 6.04 Lakh in your original schedule. As your loan outstanding reduces and you opt to reduce your loan tenure, at the end of 5 years you are left to pay only 33 more EMIs compared to 60 EMIs as planned in your original loan schedule. As a result of this change, your total housing loan tenure gets reduced to 93 months compared to 120 months, which was scheduled earlier. In summary, you repay back your complete loan in 27 months less than what you had planned earlier and continue paying an EMI of Rs. 12,399 every month. Please refer to table below to understand the EMI calculations in case of a prepayment:

Revised Schedule, after prepayment of Rs. 2,50,000 at the end of year 5 Option 1: Same EMI, shorter tenure
Loan Amount	Rs. 10 Lakh
Tenure (in months)	93
Interest Rate	8.50%
Monthly EMI, Rs.	12,399
Early Payment, Rs.	2.50 Lakh in 5th year

Loan schedule	Principal repaid	Principal outstanding
Year 1	66,327	9.33 Lakh
Year 2	72,190	8.61 Lakh
Year 3	78,571	7.82 Lakh
Year 4	85,516	6.97 Lakh
Year 5	34,3075	3.54 Lakh

Option – 2 : Reduce your EMI and keep the loan tenure same

At the end of 5 years, when you prepay an amount of Rs. 2.50 Lakh, outstanding principal is reduced to Rs. 3.54 Lakh as comparison to Rs. 6.04 Lakh in your original schedule. As your loan outstanding reduces and you opt to reduce EMI, your revised EMI stands at Rs. 7,269, compared to Rs. 12,399 earlier. Your remaining loan tenure remains unchanged at 60 months and you pay an EMI of Rs. 7,269 which is lower by Rs. 5,130 as per your original loan Amortization schedule. Please refer to table below to understand the EMI calculations in case of a prepayment under Option 2:

Revised Schedule, after prepayment of Rs. 2.50 Lakh at the end of year 5 Option 2: Same tenure, lower EMI
Loan Amount	Rs. 10 Lakh
Tenure (in months)	120
Interest Rate	8.50%
Early Payment, Rs.	2.50 Lakh in 5th year

Loan schedule	Monthly EMI	Principal repaid	Principal outstanding
Year 1	12,399	66,327	9.33 Lakh
Year 2	12,399	72,190	8.61 Lakh
Year 3	12,399	78,571	7.82 Lakh
Year 4	12,399	85,516	6.97 Lakh
Year 5	12,399	3.43 lakh	3.54 Lakh
Year 6	7,269	59,395	2.94 Lakh

Should I opt for a lower EMI or a lower tenure in case I prepay a loan?

The choice between the two options of reducing your EMI or your loan tenure depends on your monthly finances

If you plan to prepay, continuing to pay same EMI over a shorter tenure can result in significantly lower interest amount on your home loan and hence, should be the preferred choice whenever possible. If you feel that you want to reduce your EMI to be able to have more monthly income available, you can opt to reduce your EMI but, in this case, be prepared to pay high interest charges. You can use online prepayment calculator to know the impact of prepayment on your EMIs and tenure better.

FAQs on Housing Loan EMI Calculator

How to calculate home loan EMI?

• Home Loan EMI Calculator uses combination of loan amount, loan tenure and interest rate to calculate housing loan EMI instantly.
• It also tells you how much interest you would pay over the life of the loan. Longer the loan tenure, more the amount of interest for same loan amount and interest rate.

How long can I take a home loan for?

The maximum tenure available for home loan is 35 years. If you apply for a longer repayment tenure, your EMI for loan will be less. However, longer loan tenure increases the amount of interest payment which makes your loan repayment costly.

How much should I pay as monthly EMI?

Monthly EMI depends upon your income and expenses. Generally, banks advise you to limit your EMI to 35 to 45% of your net income so that you can pay your EMI without any burden or difficulty. You can calculate home loan EMI online which will help you to know your repayment capacity.

Is the home loan EMI fixed or can it change in future?

Home Loan EMI is fixed only in the case of fixed rate loans. In the case of floating rate loans, EMI will increase or decrease as per the changes in Repo Rate Linked Rate of banks. After the recent RBI announcements, any increase or decrease in repo rate as announced in the bilateral monetary policy will result in the same rate changes for existing home loan borrowers. Apart from floating rate loans, EMIs change for partly disbursed loans availed under tranched EMI scheme, your loan EMI will increase with each disbursement and payment you make to your developer. Your EMIs might also change in a scenario when you decide to prepay a certain percentage of loan amount during the loan tenure. Some banks may also have clauses in the loan agreement which allows them to reset the benchmark rates and spreads under special circumstances.

Can I reduce my home loan EMI?

Yes, you can reduce your home loan EMI by making a prepayment for a certain amount. The higher the prepayment you make, the more outstanding the principal will reduce.

What is the EMI for 20 lakhs home loan?

The EMI varies from bank to bank based on rate of interest and tenure. The EMI for Rs. 20 lakhs loan for top banks will be as following:

Banks	Rate	EMI
SBI	7.90%	14,536 for 30 years
HDFC	8.05%	14,745 for 30 years
ICICI Bank	8.25%	15,025 for 30 years
Axis Bank	8.55%	15,449 for 30 years

How can I reduce my home loan EMI quickly?

You can reduce your EMI quickly by making a pre-payment of your home loan. The more you pay above your monthly EMI, the more amount will be reduced from the principal balance amount, which will result in the drop of your EMI.

What will be the EMI for 30 lakhs home loan?

The EMI for 30 lakhs will be different for different tenure. Based on the Home Loan interest rate of 7.90%, here is a comparison of EMIs for different tenure:

Tenure	EMI
5 Years	₹ 60,686
15 Years	₹ 28,497
30 Years	₹ 21,804

Can we stop home loan EMI for few months?

Banks do not allow you to stop paying EMI for a few months and will count it as a loan default in case you fail to pay regularly. However, you can opt for special home loan schemes by various banks like SBI Flexipay, in which you pay interest based on the amount you withdraw from the overdraft account.

How is Home Loan EMI calculated?

To calculate the EMI of home loan you require following data:
P Principal amount
R = Rate of interest
N = Tenure of loan
EMI = P*R*(1+R)^N/ [(1+R)^N-1]

You can also calculate your home loan EMI using housing loan EMI calculator online to save time and get accurate results.

What happens if you stop paying home loan EMI?

If you stop paying home loan EMI, the bank will contact you through all available channels and remind you to pay your EMI. If, even after multiple reminders, you do not pay your EMI for 3-4 months, then your loan account will be reported as a NPA and the banks may initiate legal proceedings to recover their dues. This will also result in a lower CIBIL score, which may make it difficult for you to get a loan in the future.

How do you calculate home loan interest?

Housing loan interest for reducing method is calculated based using the formula:

(P x I) x ((1 + r)n)/ (t x ((1 + r)n)- 1)
P is borrowed principal amount
I is the interest rate per annum
r is the periodic monthly interest rate
n is the number of monthly payments
t is the number of months in a year
You can use housing loan interest calculator to calculate the interest component in EMI.

What is a pre-EMI on a home loan?

In a pre-EMI interest scheme, bank offers the home loan borrower an option to pay only monthly interest on the loan disbursed till the completion of the property. In this case, the principal the EMIs (which consists of the interest component and principal repayment) on the loan commences only after the loan gets disbursed completely. Since no principal is being repaid, the pre EMI amount is always less than the regular EMI.

Compare Home Loan EMI of All Banks