Home Loan Calculator
Whether you're planning to buy your first home or upgrading to a new one, having a clear idea of your EMIs is essential to ensure well-informed decisions and smooth financial planning. This is where an EMI calculator for home loans comes in handy.
What Is a Home Loan EMI Calculator?
An EMI calculator for a home loan is an important tool in your journey to take a home loan successfully. It helps you calculate your home loan EMI quickly and decide on the ideal loan tenure so that your EMI can be managed within your monthly budget with ease. This helps you to make an informed decision about buying a new home.
Using the online calculator for home loans, you can know how tenure and rate of interest impact your EMIs and explore different repayment schedules that are affordable and suit your needs. Further, the payment calculator shows you the complete breakup of the payment schedule and instalment breakup (principal and interest amount) for the full tenure of the home loan.
This loan repayment calculator is an indispensable financial planning tool for a home buyer that lets you decide on the quantum of contribution towards a home down payment and ensure timely loan repayments
What Is Home Loan EMI?
A home loan EMI, or Equated Monthly Instalment, is a fixed, predictable payment you make to your lender each month over your chosen loan term. This payment breaks down into two parts:
- Principal Repayment: This gradually pays off the original loan amount you borrowed.
- Interest Accrued: This portion covers the borrowing charge and is calculated on the outstanding loan balance.
With the EMI system, you know exactly what to expect monthly, simplifying budgeting and financial planning for your dream home. This is where an EMI calculator for housing loans comes into the picture.
How Is EMI on a Loan Calculated? An Illustrated Guide
Follow these simple steps to calculate the EMI for your home loan:
- Visit an Online EMI Calculator
Open a reliable home loan EMI calculator.
- Input the Principal Loan Amount
Enter the loan amount you wish to borrow (e.g., INR 25,00,000).
- Enter the Rate of Interest
Add the annual interest rate (e.g., 10%).
- Set the Loan Tenure
Choose the loan duration in months or years (e.g., 15 years = 180 months).
- View Results
The home loan calculator will instantly give you an EMI estimate.
- Experiment with Variations
Adjust the loan tenure or interest rate to compare different EMI amounts and choose what suits you best.
How Does the SMFG Grihashakti Home Loan EMI Calculator Work?
The SMFG Grihashakti home loan EMI calculator uses three basic inputs
Enter the home loan amount you are considering borrowing and the applicable rate of interest into the relevant field. Using the slider, adjust the loan tenure and the home loan calculator will automatically reflect the estimated EMI for the loan tenure.
The home affordability calculator also provides an amortization schedule that contains details of the year-wise repayment schedule for the entire loan tenure.
Calculate the Interest Amount with a Home Loan Calculator
A home loan calculator is a free online loan estimator tool that calculates housing loan monthly EMI based on factors like home loan amount, rate of interest and loan tenure.
It also functions as a home loan interest calculator as it displays the interest component of the home loan during the entire loan tenure. Please do note, however, that the final interest rate offered to you will depend on several factors such as your Home loan eligibility and SMFG Grihashakti’s policy at the time of loan application.
The home loan interest calculator is a very helpful self-planning financial tool for home loan repayment planning to ensure timely EMI repayments and explore various repayment schedules by adjusting the loan amount and loan tenure in the mortgage calculator. Do note that the final monthly EMI may also have other components such as insurance and service charges. The EMI calculator for home loans provides you with a near-accurate estimate of your monthly EMI purely based on the loan tenure, interest rate and amount.
What Are the Advantages of a Calculator for Housing Loan EMI?
There are several benefits of using a home loan EMI calculator in India:
- Easy and quick calculation of home loan EMI
- Helps to choose the right loan tenure based on your disposable income, working as a convenient mortgage affordability calculator
- Is free and the calculator for housing loans can be used online from anywhere including mobile and computer
- Provides accurate results with speed and reliability
- Can be used as a home loan interest calculator,i.e, you can calculate the total interest applicable on your loan amount
- Help to calculate the EMI schedule
What Is a Home Loan Amortization Schedule?
While the EMI during the loan tenure remains uniform, the constitution of the EMI changes every passing month with each payment.
For instance, at the start of home loan tenure, the interest component constitutes the major portion of the EMI due to higher interest outstanding. As the tenure progresses, the constitution of interest components continues to decline with every EMI payment, thereby increasing the share of the principal component.
This is where the amortization schedule provides the accurate break-up of principal and interest payout in each EMI with their respective balances across the tenure. In short, it provides a roadmap towards the repayment of the home loan and different milestones.
The table helps you in effective tax planning and claim deduction on both the home loan principal and interest repayment under different sections of the Income Tax Act.
An amortization schedule can be obtained from an amortization calculator.
Below is an example of a basic amortization schedule if you were to take a loan of INR 3,00,000 at an interest rate of 10% per annum to be repaid in a year:
| Year |
Opening Balance |
Interest Paid During the Year |
Principal Paid During the Year |
Closing Balance |
| 1 |
INR 3,00,000
|
INR 16,497
|
INR 3,00,000
|
INR 0
|
Home Loan Amortization Schedule
Let’s consider a hypothetical example: a loan amount of INR 30,00,000, a tenure of 15 years (180 months), and a fixed interest rate of 10% per annum.
Here’s what the amortization schedule might look like for the first five months:
| Month |
Principal (Rs.) |
Interest (Rs.) |
Principal + Interest (Rs.) |
Balance to be Paid (Rs.) |
| 1 |
7238 |
25000 |
32238 |
2992762 |
| 2 |
7298 |
24940 |
32238 |
2985463 |
| 3 |
7359 |
24879 |
32238 |
2978104 |
| 4 |
7421 |
24818 |
32238 |
2970683 |
| 5 |
7482 |
24756 |
32238 |
2963201 |
The schedule highlights how EMI components evolve, with interest reducing over time and principal repayment increasing.
When Does the Home Loan EMI Start and Become Due?
In general practice, the home loan EMI starts from the following month of the loan disbursal and the EMI is due on a fixed date each month, which is notified at the time of disbursal or approval.
If a moratorium on home loan EMI payments is agreed upon, it will begin after the predefined period. In the case of a moratorium on home loan EMI payment is agreed upon, it would start after the predefined period. However, the interest will continue to be added to your home loan during the period of the moratorium.
Can I Prepay my Home Loan?
Yes, you can prepay your outstanding home loan amount partially, which can be several times your home loan EMI. The prepayment will reduce the outstanding home loan amount, thereby lowering your net interest expenses.
What Are the Factors that Can Affect a Home Loan EMI?
Here are the main factors affecting home loan EMI. (Please note that this is a basic, and depending on the lender’s policy as well as the agreed-upon terms, additional documents may be requested):.
Loan Amount:
The principal amount plays a large part in your EMI structure. Higher loan amounts lead to higher EMIs, which is why it is advisable to borrow the exact amount you need.
Interest Rate:
A higher interest rate will lead to a higher EMI amount. You can obtain the exact figures from a home loan interest calculator.
Tenure:
A longer tenure will allow a smaller EMI amount, but the total interest outgo over the tenure of the loan may be much higher.
Extra Charges:
Depending on the terms agreed upon with your lender, additional factors such as insurance, service fees, etc. may be added to your EMI amount.
Prepayment Terms:
Sometimes, lenders may allow salaried borrowers whose monthly income increases over the tenure of the loan, to pay a higher EMI amount.
Extra Benefits (As Applicable):
Benefits (like the PMAY interest subsidy) that may be authorised a few months after the application, may be provided to borrowers in the form of reduced EMI.
Use a home loan EMI calculator online to determine your EMI and select an appropriate tenure to strike the perfect balance between an amount that can fit within your budget and at the same time to repay your loan as soon as possible.