Calculating your EMIs beforehand allows you to plan your repayment and helps you to manage your finances efficiently. You can make use of a mathematical formula or an online house loan calculator for a home loan to estimate your EMIs.
However, calculating the loan EMI manually can be confusing, and the answer may not be appropriate.
Hence, to get accurate answers, it is better to use an online EMI calculator for a home loan while you calculate your EMIs. It will help you determine how much home loan EMIs you can afford.
Using a calculator
Visit the official website of your lender to access tools like an online EMI calculator. Toggle the loan amount and loan tenor to estimate the payable installments on your home loan.
Given below is an example that helps understand how your EMIs change with changes in loan tenor and amount.
Example 1
Principal amount – Rs. 25 Lakh
Rate of interest – 8%
Loan tenor – 18 years (216 months)
EMI = Rs. 21,847
Example 2
Principal amount – Rs. 25 Lakh
Rate of interest – 8%
Loan tenor – 20 years (240 months)
EMI = Rs. 20,911
Example 3
Principal amount – Rs. 25 Lakh
Rate of interest – 8%
Loan tenor – 13 years (156 months)
EMI = Rs. 25,827
In addition, in case you reduce your loan amount to Rs. 20 Lakh at an interest rate of 8% with a tenor of 13 years, your EMI will be Rs. 20,661.
