Are you planning to take a home loan to buy your dream home? The most important things you need to consider before taking a home loan are the equated monthly instalments and the interest payable. A home loan EMI calculator helps you to calculate your monthly EMI amount with ease and speed. Let us read on to understand the benefits of a home loan EMI calculator.

What is a Home Loan EMI Calculator? 

The home loan EMI calculator is a simple online calculator that allows you to calculate the EMI number. It enables you to try different permutations and combinations until you reach an ideal EMI number.

How to Use a Home Loan EMI Calculator?

Let us see how the EMI can be calculated manually and by using the home loan EMI calculator. 

Manual Calculation:

You can calculate the home loan EMI amount 

using the formula:

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


P is the Principal. It is the original amount given to you by the bank on which the interest payable is calculated.

R is the rate of interest set by the bank.

N is the number of years for which the loan has been taken. EMIs are paid every month, so the duration is calculated in the number of months.

For example: you are taking a home loan of 40 Lakhs at an interest rate of 12% for 10 years. 

Then the approximate EMI will be: 

P = Rs. 40 Lakhs

R = 12/100/12

=  0.12/12 = 0.01

N = 10 years or 120 months 

EMI = [40,00000 * 0.01 * (1 + 0.01)^120]/ [(1 + 0.01) ^ 120 - 1]

EMI = 57388.379361

This manual calculation is very cumbersome. 

Use the CreditMantri Home Loan EMI calculator

It consists of  3 slots - loan amount, loan tenure, and rate of interest with sliders. 

  • Move the sliders to select the loan amount, loan tenure, and the rate of interest.
  • Once you have selected the values for the 3 variables, you will be shown the EMI (Equated Monthly Instalments) you must pay the lending institution each month to repay the home loan within the selected tenure, the total interest payable, and the total amount. 

Benefits of a Home Loan EMI Calculator 

Using a home loan EMI calculator is advantageous. The benefits are as follows:

  • A home loan EMI calculator helps you to come up with a financial plan by enabling you to calculate your monthly instalments. 
  • It helps in the easy calculation of your EMIs. You just need to key in some relevant information, such as principal loan amount, rate of interest, and loan tenure in the respective slots, and the calculator will automatically compute and display the home loan EMI figure. 
  • When you make manual computations, there are possibilities for human errors. The utilisation of user-friendly EMI calculators will give you accurate and error-free data based on the information provided by you. 
  • It provides you with a breakup of your loan amount, showing you how much you will have to pay towards the principal and the interest.
  • The EMI calculator can be used to compare offers from different banks. Results showing the total loan amount along with the respective EMIS help you to choose the best option according to your requirements. 
  • A customer may have extra funds for making prepayments. He can then use a home loan EMI calculator to compute how prepaying will alter the loan tenure, interest payable, and the EMIS to be paid. Thus it helps in managing your loan.
  • You have the flexibility to generate countless permutations and combinations that help you arrive at the right EMI figure.  
  • Based on the results shown by the EMI calculator, you can decide whether you want to take a home loan with a shorter or a longer duration. If you wish to pay your loan faster, then you can take a home loan with a shorter tenure. However, if you don’t want to cut down on your day-to-day expenses and alter your lifestyle, then you can go in for a home loan with a longer duration. 
  • When you use a free online home loan EMI calculator, you do not have to worry about security issues. You do not have to disclose your identity, hence it is completely safe to use it.

Home Loan Part Payments and EMI Changes

A borrower can make as many part-prepayments as he/she wishes during the duration of the home loan, and the EMIs will change accordingly. The amount paid goes toward reducing the outstanding home loan amount, thus reducing the net interest payable. You can use a home loan EMI calculator to understand the impact of part payments on your home loan.  

Related Reads: Personal Loan EMI Calculator 


Owning a  home is a dream come true for everyone, and it is also an indicator of a person’s success. A home loan is a convenient way to fund your home. But, it is essential to manage your home loan judiciously, and an online home loan EMI calculator will help.


FAQS of Understanding the Benefits of a Home Loan EMI Calculator

1: What is the benefit of an EMI?

EMIs help you to purchase without worrying about having to pay lump sums of money. 

2: What percentage of your salary should you pay towards your home loan EMI?

The home loan EMI must not be more than 35 to 40% of the monthly net income. 

3: What will happen when you miss home loan EMI payments?

If you miss the EMI payments once or twice, banks will not mind it. However, if the defaults continue regularly, the banks will give a grace time of two months. Even then, if the payment cycles are not regularised, then the bank will seize the property or the home.

4: How to reduce the home loan tenure in SBI?

You can change the home loan tenure in SBI voluntarily anytime during the course of the loan. You can visit the branch of the lender and request the same. The bank will go through your latest income statements and loan statements to change the home loan duration. 

5: Give a scenario when it is advisable to close your home loan?

If the total outgoing interest is higher than the tax deduction, then it is advisable to invest the excess money in closing or decreasing the home loan.