Home Loan EMI Calculator

Home loans are among the secured and long-term financial options to purchase or construct a property. With time, the standards of living have risen, which in turn calls for assistance to meet the increasing capital demand. Hence, determining the EMI to pay becomes a crucial task before one decides to apply for a loan.

Calculating EMIs manually can be a hectic and challenging task, with a chance of getting the wrong result. But do not worry, as you can use an online home loan EMI calculator anytime to calculate your monthly installments with a snap of your finger.

So scroll down to learn more about how you can use the calculator to assess your EMIs on home loans based on your financial planning.

A home loan is a type of secured loan offered by different banks, NBFCs (Non-Banking Financial Companies) and financial institutions for purchasing a property. Such loans are generally available for long tenures with an economical interest rate. The repayment of home loans is done via EMI (Equated Monthly Instalments) and after the loan is repaid, the title of the property is transferred to the borrower.

As a home loan is a long-term and big financial commitment, it becomes important to analyse all the aspects. It helps to decide whether the loan and its corresponding requirements are feasible to your financial goals. The interest rate applicable to your home can be of 3 different types, which you are eligible to choose. They are:

Keep reading to know in detail how the EMI on your home loan works and how to use the home loan EMI calculator to get feasible results.

With an online home loan EMI calculator, you can simplify the process of calculating your monthly instalment amounts before you opt for one. So let us now have a look at the formula based on which your instalments get calculated:

A home loan monthly EMI calculator works on the following formula - 

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

As per the formula:

So let us now understand it better with the help of an example:

Suppose Raj has availed a home loan of Rs. 50 Lakhs for a tenure of 18 years at an interest rate of 7% p.a.

Then, according to the formula,

EMI = [50,00,000 x 7% x (1+7%)^18]/[(1+7%)^ (18-1)].

EMI = Rs. 40,775

So, this is how a home loan EMI calculator works. You need to know that calculating the EMI using the formula manually can be time-consuming and may have errors. So why waste your precious time calculating the amount manually, just to get an inaccurate result? Thus it is always feasible to opt for an online calculator that will find you your EMI in no time.

If you opt for a home loan at a fixed rate of interest, you will have to pay the same instalment amounts throughout the tenure. However, parts of each payment going towards the loan principal and interest will differ. This process of calculating EMIs is called amortisation.

Given below is the amortisation schedule for the home loan example we discussed above.

You can see from the above table that the interest portion is higher during the initial months. However, with time as the loan amortises, the amount for principal becomes higher while it decreases in case of interest.

Opting for a home loan is a dream of many, hence it is one of the smartest moves to purchase a property if you are short of money. But what would happen if something happens to you before the repayment of your loan? The liabilities get passed on to your family leaving them in financial stress.

Therefore, to avoid such circumstances you can opt for either a home loan insurance or a term insurance plan. On one hand, term insurance secures your family during the policy period. In case something happens to you, the remaining amount will be paid from the death benefit.

On the other hand, incase of death of the policy holder during the loan repayment tenure, home loan insurance can be used in settling the outstanding amount, securing your family during such scenarios.

With a user-friendly interface and various useful features, using the ACKO home loan EMI calculator offers several advantages, which include the following:

Using the ACKO home loan EMI calculator requires no financial expertise. You can simply visit our official website and move on to the calculators' page to determine your home loan monthly instalments.

Besides, you can get customised results to check how well you can afford the home loan you are opting for. The home loan instalment calculator asks for the loan amount, loan repayment tenure and the rate of interest at which the loan will be repaid. You can customise these options according to your preference to get an accurate result instantly.

Moreover, the calculator allows you to change the details unlimited times to compare the results and instalments you can afford. You can continue with the process until you are satisfied with an amount that perfectly aligns with your budget and financial goals.

Overall, the ACKO home loan EMI calculator comes in handy for everyone who wishes to opt for a home loan. Its easily navigable interface and useful features have proved to be beneficial for several prospective borrowers. Apart from using their home loan EMI calculator, you can also find different financial tools that can assist you with your financial planning and achieve those goals.

So, visit the official website of ACKO today and determine your error-free and accurate EMIs, to select a home loan policy that perfectly aligns with your financial preferences.