The Reserve Bank of India, in its current monetary policy meeting in February 2021, has decided not to alter the repo rate, keeping it fixed at 4%. This has come as good news for prospective homebuyers as they can now avail credit at a lower interest rate to purchase their house.

Even though interest rates are now at their 15-year low, individuals should calculate their EMIs before applying for the advance to ensure timely repayment. To make this process easier, they can avail the assistance of a housing loan EMI calculator.

Housing loan EMI calculator – What is it?

It is an online device that allows individuals to compute their home loan monthly instalments depending on their inputs. These calculators have a different section to insert values like loan amount, tenor, interest rate etc. Once borrowers put their desired value, it will automatically calculate the EMI within seconds.

Moreover, prospective debtors have the liberty to alter these values as many times as they want, to find a loan offer that perfectly suits their needs.

Home loan calculators use the following formula for this purpose –

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

Here –

  • P gives the principal amount
  • R is the rate of interest
  • N represents the number of terms or months

These house loan calculators are user-friendly and accurate, allowing borrowers to plan repayments efficiently.

Benefits of using a home loan calculator

Here are some notable benefits of this online device –

  • Accurate calculations

Probably the biggest benefit of this device is its accuracy. Manual calculations can be prone to errors, and individuals may end up with the wrong figures.

  • Swift results

Manual calculations can take a long time, and the process is complicated. Whereas, with these calculators, borrowers can find their ideal loan offer within a few seconds.

  • Graphical representations

These home loan EMI calculators often offer a graphical representation of the entire repayment structure. Hence, it becomes easier for individuals to understand their liabilities in greater detail.

  • Amortisation schedule

Another notable advantage of using these housing loan EMI calculators is the availability of an amortisation schedule. With assistance from this table, borrowers can learn how their loan progresses over time. They can also find out the details of interest and principal payment.

  • Financial planning

Online devices like these also play a pivotal role in financial planning. They allow users to compute their EMIs in advance and plan their finances accordingly. Additionally, individuals should also know the benefits of calculating the EMIs beforehand.

Leading NBFCs have such calculators available on their websites for customers for free usage. They can use the calculator to compute the total interest payable, total debt, EMI amount, etc. Also, individuals can use the amortisation schedule to learn more about the progression of home loans.

Along with such calculators, the availability of pre-approved offers further expedites the loan application process. It streamlines the whole process and saves time. This offer is available on financial products like home loans, loan against property, etc. Prospective borrowers can check their pre-approved offer by submitting their essential contact details.

Home loan interest calculators have helped individuals seek the best home loan options. Simultaneously, being aware of the ways to reduce the instalment can help individuals lower their burden.

Tips to lower the home loan EMIs

Here are some tips to lower the instalments of housing loans –

  • Higher down payment: Individuals can make a substantial down payment to lower their total outstanding, which in turn will reduce their EMIs.
  • Part payments: Individuals can make part payments of their housing loans to reduce the total principal amount and the EMIs.
  • Revising EMIs: Lenders often allow individuals to revise their EMIs once a year. Borrowers can take this opportunity to find a convenient instalment amount.
  • Balance transfer: Last but not least, a home loan balance transfer is another convenient process to reduce EMIs. Individuals should know the reasons to refinance their home loans and how it can help them to lower EMIs.

Housing loan EMI calculators offer an easy and convenient way to find the instalment amount required to be services. Individuals can use them to find a loan offer to suit their requirement and make an informed decision.


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