Today, you don’t need a calculator or elaborate excel sheet calculations to figure out your home loan EMI. It can be done in a jiffy on the web by using the online EMI calculator. You input some basic data like amount of loan, interest rate and tenure of loan and in a second the EMI amount is there in front of you. Today, most EMI calculators allow you to simulate. You can either input the data as above and get the EMI, or you can input the EMI and then find out the best tenure, the best interest rate, or the best loan amount. But, what exactly is meant by home loan EMI and how to calculate home loan EMI?

Today it is possible to calculate your home loan EMI, by just using a simple online calculator that is available even on the SBI REALTY website. You put in basic data points and get the output in a second. However, it is important to understand the basis of calculation of EMI. Remember, the equated monthly instalment (EMI) has an interest component and principal component. The general EMI rule is that the interest component is higher in the earlier part of the loan tenure and the principal part is higher in the latter part of the loan tenure. But first, let us get to the formula for home loan EMI. You can use the formula below to calculate EMI.

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

**What do these variable mean? **

**P** is the Principal loan amount

**N** is the Loan tenure in months

**R** is the Monthly interest rate

For example, If a person avails a loan of ₹75,00,000 at an annual interest rate of 7.7% for a tenure of 20 years, then his EMI would be:

EMI= ₹75,00,000 * 0.0064 * (1 + 0.0064)240 / ((1 + 0.0064)(120 - 1) = ₹61,340.

The total amount payable will be ₹61,340 * 240 = ₹1,47,21,598. Principal loan amount is ₹75,00,000 and the Interest amount will be ₹72,21,598.

As stated before, it can be quite strenuous using this formula, so one must use the web based calculator to determine the home loan EMI and simulate options.

When we talk about how to calculate home loan EMI, it is not just about determining the EMI amount, but also different simulations. Such simulations are captured as under.

- You can get the monthly EMI payable on the loan by putting in the other variables. For instance, you input loan amount, rate of interest (annual) and the tenure of the home loan and the web EMI calculator will simulate the EMI amount for you.
- You can also get the annual interest rate of interest payable on the loan. For instance, you input loan amount, monthly EMI you can afford and the tenure of the home loan and the web EMI calculator will simulate the rate of interest for you.
- You can also determine the ideal tenure of the loan based on other parameters. For instance, you input loan amount, rate of interest (annual) and the monthly EMI for the home loan you can afford and the web EMI calculator will simulate the tenure for you.
- You can get the overall loan amount eligible based on inputting the other parameters. For instance, you input monthly EMI you can afford, rate of interest (annual) and the tenure of the home loan and the web EMI calculator will simulate the total amount of loan you are eligible for.

One of the things you need to know apart from how to calculate home loan EMI, is how to make the best use of such analytics. Normally, when you use the online calculators, then also give you value added inputs. Here are some points you must examine closely.

- Look at the total amount of interest you are paying through the tenure of the loan. While there are not hard and fast rules, your total interest during the life of the loan must not be more than the range of 80-85% of the loan amount. If you can go lower, it is only better.
- The EMI calculator would also provide you with a month wise amortization of the loan amount. That shows you how the interest amount decreases gradually and the principal amount increase. This helps you to decide the best time to prepay your home loan, should you decide to do so.
- Lastly, if you find the numbers intimidating, most websites also offer EMI amortization in graphic format. That is a lot more elegant and easier to understand. Make the best of it.

**Disclaimer**

SBICAP Securities Limited through its division SBI Realty solutions deals in Pre Launch, Under construction, Ready Possession. SBICAP Securities Limited through its division SBI Realty solutions provides a unified platform for exchange of information & facts for buyers, builders & sellers. SBICAP Securities Limited through its division SBI Realty solutions is merely an intermediary for exchange of information to facilitate the transactions between Builder, Developers / Seller and Customer / Buyer and is not and cannot be a party to or control in any manner any transactions/disputes between the Seller and the Buyer. Projects featured on www.sbirealty.in are SBI approved projects only. SBICAP Securities Limited through its division SBI Realty Solutions shall neither be responsible nor liable to mediate or resolve any disputes or disagreements arising between the Buyer & Seller and both Seller and Buyer shall settle all such disputes without involving SBICAP Securities Limited through its division SBI Realty solutions in any manner whatsoever. The Website provides in depth analysis of the Property Market with more than 2400 Under Construction Projects developed, which are currently under development by more than 800 Developers. The website features latest prices, digital pictures of projects in various construction stages. The focus of the website is on Home Buyers looking to buy or upgrade to a New Home or Invest in under construction project or pre-launches by reputed builders.

**SBICAP Securities Limited**

Marathon Futurex, Unit No. 1201, B-Wing, 12th Floor, N M Joshi Marg, Mafatlal Mill Compound,
Lower Parel East, Mumbai 400013.

AdilabadAgraAhmadnagarAhmedabadAjmerAkolaAlappuzhaAligarhAllahabadAMBALAAmravatiAmritsarAnantapurAngulAurangabadAusaBalangirBallariBanaskanthaBarabankiBarddhamanBardhamanBareillyBarmerBastarBathindaBelagaviBengaluruBhagalpurBharuchBhavnagarBhiwadiBhopalBhubaneshwarBikanerBilaspurBirbhumCacharChandigarhChennaiChhatarpurChittoorCoimbatoreCuddapahCuttackDakshina KannadaDamanDarbhangaDarjilingDausaDehradunDeogharDhanbadDharwadDholpurDhubriDhuleDibrugarhDurgDurg-Bhilai NagarEast GodavariEast MidnaporeEast SikkimEast SinghbhumFaridabadGandhi NagarGanganagarGanjamGayaGhaziabadGoaGorakhpurGreater NoidaGunturGurugramGuwahatiGwaliorHyderabadIndoreJabalpurJaipurJalandharJalgaonJalnaJalpaiguriJamnagarJhajjarJhansiJindJodhpurJorhatJyotiba Phule NagarKalaburagiKamrupKangraKannurKanpurKanpur NagarKarim NagarKarnalKatniKhammamKhedaKochiKolarKolhapurKolkataKollamKotaKottayamKozhikodeKrishnaKulluKurnoolKurukshetraLaturLucknowLudhianaMaduraiMahabub NagarMahesanaMalappuramMaldaMangaloreMarmagaoMathuraMeerutMiryalagudaMohaliMoradabadMumbaiMuzaffarpurMysoreNadiaNagaurNagpurNainitalNalandaNalgondaNandedNandurbarNashikNavi MumbaiNavsariNawadaNelloreNew DelhiNILNizamabadNoidaNorth 24 ParganasPalakkadPanipatPathanamthittaPatnaPondicherryPrakasamPudukkottaiPunePuriPurniaRaigarh(MH)RaipurRajkotRamanagarRanchiRatnagiriRayagadaRewaRewariRohtakRupnagarSabarkanthaSalemSambalpurSangliSaranSataraSawantwadiSeraikela-kharsawanShahjahanpurShimlaShivamoggaSikarSiliguriSindhudurgSirmaurSirohiSirsaSivagangaSolanSolapurSonepatSouth 24 ParganasSriganganagarSullurpetSundergarhSuratThaneThiruvallaThrissurTinsukiaTiruchirappalliTirupatiTrivandrumTumakuruUdaipurUdham Singh NagarUdupiUmariaUnnaoUttara KannadaVadodaraVaishaliValsadVaranasiVidishaVijayapuraVijayawadaVisakhapatnamVizianagaramWarangalWest GodavariWest TripuraYamuna NagarYavatmal

Copyright @2023. All Rights Reserved. SBICAP Securities Limited.