Find your monthly Home Loan EMI, total interest payable, and overall cost of the loan.
Monthly EMI
тВ╣0
Your monthly outflow
Total Interest
тВ╣0
Interest over loan tenure
Total Payment
тВ╣0
Principal + Interest
Note: EMI is calculated on a reducing balance basis using the standard EMI formula.
EMI Breakdown тАУ Principal vs Interest
Donut shows principal vs interest.
EMI Spread Across Years
Bar shows how EMI is spread across years.
What is Home Loan EMI
A Home Loan EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your home loan within a chosen tenure. It includes both the principal amount and the interest charged by the lender. Each EMI remains constant throughout the tenure, but the composition changesтАФinitial EMIs include a higher portion of interest and a smaller share of principal repayment, which gradually reverses as the loan matures. Your EMI primarily depends on three factors: loan amount, interest rate, and loan tenure. The longer the tenure, the smaller your EMIтАФbut the total interest outgo becomes higher.
What is a Home Loan EMI Calculator?
A Home Loan EMI Calculator is an online financial tool that helps you quickly estimate your monthly EMI, total interest payable, and total loan repayment amount. Instead of manually calculating through complex formulas, the calculator provides instant and accurate results based on the details you enterтАФloan amount, interest rate, and tenure. The Business Day Home Loan EMI Calculator also displays an interactive pie chart and amortization chart, making it easier to visualize how your EMIs are divided between principal and interest components over time.
How can a Home Loan EMI Calculator Help You?
A Home Loan EMI Calculator is an essential planning tool for every homebuyer or borrower. HereтАЩs how it helps:
Financial Planning: It allows you to understand your monthly commitment before applying for a loan, ensuring the EMI fits comfortably within your budget.
Instant Comparison: You can compare different tenures and interest rates to find the most cost-effective loan structure.
Saves Time: No manual computation needed; results are displayed instantly.
Decision Support: It helps you decide between fixed and floating interest options or between banks offering different rates.
Transparency: You get a clear view of the total cost of the loan, preventing surprises later in the repayment cycle.
Using this calculator ensures you borrow smartly and repay confidently.
How Does a Home Loan EMI Calculator Work?
A Home Loan EMI calculator works on a standard mathematical formula that determines your monthly payment based on the principal, rate, and tenure.
Mathematical Formula:
Term
Description
EMI
Equated Monthly Instalment
P
Principal Loan Amount
R
Monthly Rate of Interest (Annual Rate ├╖ 12 ├╖ 100)
N
Loan Tenure in Months
Formula:
EMI = [P ├Ч R ├Ч (1 + R)<sup>N</sup>] / [(1 + R)<sup>N</sup> тАУ 1]
Hence, for a тВ╣50 lakh home loan at 8.5% interest for 20 years, your EMI will be approximately тВ╣43,391 per month.
How to Use Business Day Home Loan EMI Calculator?
Using the Business Day Home Loan EMI Calculator is simple and quick:
Enter your loan amount тАУ e.g., тВ╣50,00,000
Enter the interest rate тАУ e.g., 8.5% per annum
Enter the loan tenure тАУ e.g., 20 years
Click тАЬCalculate EMIтАЭ to get instant results showing:
Monthly EMI
Total interest payable
Total loan cost
Interactive donut and amortization charts
You can modify the values anytime to test various combinations of tenure and interest rate until you find the perfect EMI for your budget.
Advantages of Using Business Day Home Loan EMI Calculator
Accurate and Instant: Provides precise EMI results within seconds.
Easy to Use: Simple input fields without technical complexity.
Financial Clarity: Know your total repayment and plan accordingly.
Interactive Visualization: Graphical breakdown of interest vs principal over the loan term.
Free and Reliable: 100% free tool available anytime on BusinessDay.in.
Supports Comparison: Test multiple loan scenarios before applying.
The Business Day Home Loan EMI Calculator empowers borrowers to make informed financial decisions, ensuring you understand your repayment obligations before committing to a loan.
Home Loan CalculatorтАУ Frequently Asked Questions
How is EMI calculated for a home loan?
Home loan EMI is calculated using the formula: EMI = [P ├Ч R ├Ч (1 + R)N] / [(1 + R)N тАУ 1],
where P is the principal, R is the monthly interest rate, and N is the number of monthly instalments.
When does the home loan EMI start?
EMI payments usually start after the full loan amount is disbursed. In cases of partial disbursement (like under-construction property),
the bank may charge only interest (called pre-EMI) until full disbursal.
What is the rule for EMI of a house?
Lenders generally follow the rule that total EMIs (for all loans combined) should not exceed 40тАУ50 % of your monthly income.
This ensures the borrowerтАЩs repayment capacity remains healthy.
Is the EMI fixed through the period of the loan?
For fixed-rate loans, the EMI remains constant throughout the tenure.
For floating-rate loans, the EMI or tenure may change when the lending rate changes.
What are the tax benefits of taking a home loan?
Under Section 80C, you can claim up to тВ╣1.5 lakh deduction on principal repayment,
and under Section 24(b), up to тВ╣2 lakh on interest paid every year.
Joint borrowers can claim these benefits separately.
What is pre-EMI and is it the same as regular EMI?
Pre-EMI is the interest you pay on the disbursed portion of your loan before the final disbursement.
It covers only interest, not principal, unlike regular EMI which includes both.
What happens if I default on home loan EMI?
Missing EMIs can attract penalty interest and impact your credit score.
Prolonged defaults may lead the bank to classify the loan as a non-performing asset and initiate recovery action.
Can I prepay my home loan and what are the charges?
Yes, you can prepay partially or fully. Most banks donтАЩt charge prepayment fees on floating-rate loans.
Fixed-rate loans may have 1тАУ3 % prepayment charges on the outstanding balance.
Is a longer tenure loan better than a short tenure loan?
A longer tenure reduces your EMI but increases total interest outgo.
A shorter tenure means higher EMIs but lower overall interest. Choose based on affordability and income stability.
My home loan EMIs are completed, what are the next steps?
Once your last EMI is paid, collect the loan closure letter, No-Objection Certificate (NOC),
and release documents from your bank, and ensure the lien on the property is removed from records.