Home Loan EMI Calculator
Formula for Home Loan EMI Calculation
EMI = P x R x (1+R)^N / [(1+R)^N-1] where-
P = Principal loan amount
N = Loan tenure in months
R = Monthly interest rate
The interest rate (R) on your loan is calculated per month.
R = Annual Rate of Interest/12/100
Example: If the rate of interest is 7.2% p.a. then r = 7.2/12/100 = 0.006
For instance, if a person avails a loan of Rs. 10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then the EMI will be calculated as
EMI = Rs. 10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = Rs. 11,714.
The total amount payable will be Rs. 11,714 * 120 = Rs. 14,05,703.
The principal loan amount is Rs. 10,00,000
The interest amount will be Rs. 4,05,703
However, calculating the EMI manually using the formula can be tedious. Instead, use the Truhome Finance Home Loan EMI Calculator to calculate your home loan EMI with ease.
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EMI Starting from ₹1,185 per month
Frequently Asked Questions (FAQs)
Here are the answers to some of the commonly asked questions about a Home Loan EMI Calculator:
What is an EMI?
An EMI or Equated Monthly Instalment is the amount that the borrower pays to the lender every month, comprising of interest and principal.
How can I change the home loan tenure using an EMI calculator to see the impact on my monthly payments?
You can input different loan tenures into the calculator to see how they affect your monthly EMI. Longer tenures result in lower EMIs but higher overall interest amount, while shorter tenures lead to higher EMIs but lower interest amount.
What is the benefit of using an Truhome Finance EMI calculator instead of manual calculations?
Truhome Finance EMI calculators provide quick, accurate results and save time compared to manual calculations. They also help you make informed decisions by experimenting with different loan parameters.
How can I calculate the total interest paid over the home loan tenure using an EMI calculator?
The EMI calculators provide a breakdown of the total interest paid over the home loan tenure along with the EMI calculation.
How frequently should I use the Truhome Finance EMI calculator during the home loan repayment process?
You can use the Truhome Finance EMI calculator whenever you consider changing your loan parameters, such as the tenure, interest rate, or making extra payments. It is a good practice to review it periodically to stay informed about your loan progress.
Does the Truhome Finance EMI calculator account for additional charges and fees associated with the home loan?
No, the Truhome Finance EMI calculator provides an estimate of the EMI based on the loan amount, interest rate, and tenure. Any additional fees and charges are not included in the EMI.
What are the factors that determine home loan eligibility?
Some of the factors that determine your eligibility for a home loan are:
- Income and Repayment Capacity
- Age
- Credit Score
- Existing Debt/EMIs
- Property Valuation
Who can be a co-applicant for a home loan?
A co-applicant for a home loan is typically someone who applies for the loan along with the primary borrower. The co-applicant shares the financial responsibility of repaying the loan and may also share ownership of the property. Co-applicants can be your spouse, parent, children, or siblings.
What is the maximum home loan that I can obtain with Truhome Finance?
The maximum home loan that can be obtained from Truhome Finance is up to 90% of the property cost.
Do I get tax benefits on the home loan?
Yes, you are eligible for tax benefits on the principal and interest components of your home loan under the Income Tax Act, 1961.
