Understanding the Concept of EMI Calculator in Home Loan


We often talk about the value of planning in life. Success comes to those who are good at planning in advance. When it comes to a big financial commitment like a home loan, taking decisions without even planning may affect your finances badly. You need to plan well in advance because a housing loan is a long-term commitment. You don’t want to make a rash decision and find yourself stuck in a financial mess. Fortunately, there is a simple solution to this. You should try using a home loan EMI calculator. This tool can help you plan ahead and save you from being in chaos with your finances. Let us have a basic understanding of a housing loan EMI calculator.

Home Loan EMI Calculator

A home loan EMI calculator is an online tool that helps you calculate the instalment amount that you need to pay on a monthly basis. The process is simple process and takes only a few seconds. The EMI calculator gives you a clear picture of what you need to pay in future so that you can manage your present.

A home loan calculator includes two calculators. A home loan interest calculator and an EMI calculator. The first calculator works on a simple formula and calculates the monthly interest rate for your home loan. The second calculator is not so simple as the first one and is used to calculate home loan EMIs.

An EMI calculator helps you find the exact information that you need. It is always advisable to use the EMI calculator before applying for a home loan in India. That holds even if you are looking at pre-approved offers. By using the home loan calculator in India, you will get to know in advance how much you will need to pay every month during the loan tenure. This also helps you manage your finances better.

The home loan EMI calculator available on the website of the lenders which give you a clear understanding of what your monthly EMI amount will be. It also gives you an option to increase or decrease the EMI amount depending on the loan principal.

Basic Understanding and Calculation of EMI

The abbreviation ‘EMI’ stands for ‘equated monthly instalment’. This is a fixed amount divided equally over a period of time for repayment of your loan. This includes the rate of interest and the loan tenor. The EMI depends on three major components—the loan amount, the loan tenor, and the rate of interest. Careful planning helps you keep your finances in control. Here’s a simple example to explain the point.

John wants to purchase a television online worth Rs.15,000 wherein the EMI mentioned is Rs.1400 per month. In case John purchases it on EMI, then he will be required to pay Rs.1,400 per month for approximately 11 months (Rs.15,000/ 1400 = 10.71 approx. ~ 11 months). That is how simple it is.

To use the housing loan EMI calculator, you will need to enter information like:

  1. Loan amount
  2. Tenor in months
  3. Interest rate

After you have put in the above details, the calculator will give you the EMI amount. This is the amount you need to pay every month during the loan period agreed with the lender.


A home loan EMI calculator helps you plan your finances for the entire tenure of the home loan. It saves you a lot of time and calculates the EMI for your housing loan in seconds. It gives you accurate results, sparing you the trouble of doing the calculation manually. The calculator also suggests some home loan quotes. Overall, it prepares you to make a more focused decision before you go ahead and apply for a home loan.


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