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EMI Calculator (Equated Monthly Installments)

EMI Calculator

An equated monthly installment (EMI) is what you pay every month towards repayment of your loan. Your Loan EMI depends on the loan amount, the rate of interest and the tenure of the loan. For a given loan amount and interest rate, your EMI can be lower if you increase the loan tenure. Check out Loan EMI Calculator above to find out by how much you can reduce your present EMI by increasing the loan tenure. Of course, keep in mind that banks will allow you to increase the tenure only up to your retirement age.

Your EMI comprises an interest component and a principal component.Use the EMI calculator above to find out how much EMI you would have to pay on your loan - and how much of the total repayments will contribute to interest and how much to principal.

Note: All calculators and comparators are made based on certain assumptions which may not be true in your case. You should consult your personal financial advisor before taking any decision. Apnaloan disclaims any responsibility for any decision taken based on these calculators and comparators.

Home Loan EMI Calculator

An Equated Monthly Installment ( EMI) is a fixed monthly payment made by the borrower to the bank from where he has taken the loan. This is paid to the lender for repayment of the loan over a period of time. The EMI amount depends on the rate of interest, the loan amount and the tenure for which you have taken the loan. You can increase the EMI amount by decreasing the tenure of the loan or vice versa. Or else you can take a lower loan amount as it will reduce your EMI amount.

This EMI can be broken in to two parts -

  1. Principal component
  2. Interest component

In the beginning of the tenure, the interest component part of the EMI is significantly high, whereas the principal component portion is very low. This is because the EMI is calculated on a system of reducing balance loan amount. This means, that as and when you keep on paying your EMI, the principal part of your loan will go on reducing, meaning that you have to pay interest on a lower amount. Because of this we notice that at a later stage, the principal component being paid in the EMI will become significantly larger compared to the interest component.

In case you are taking a home loan, the bank will offer you around 80% of the value of the property as loan. You will have to pay the remaining 20% from your own sources. All the banks will have an interest rate and this interest rate will vary from bank to bank. This home loan EMI calculator will help you determine your monthly outflow as EMI. Since you cannot decide the interest rate as the banks decide them, you can certainly see how much EMI you will have to pay over various tenures and accordingly choose the tenure which suits you the best for a specified loan amount. Ideally your EMI to income ratio should not be more than 45 to 50%. In case your EMI to income ratio exceeds more than 50%, that means you will have less of your income to spend on for your daily expenses and also will be able to save less. This may effect your future goal planning also if you have any. Thus, you should play around with out home loan EMI calculator very carefully to get the most appropriate EMI amount you need to pay by changing the loan amount, tenure and also in case you have multiple options for lenders who are offering different rates. Also you should choose your tenure very carefully while playing around with this EMI calculator as you should not end up taking a tenure which is beyond your retirement age as once you retire, you will not have any income to pay off your EMI.

In this EMI Calculator for Home Loan, you can get a break up of principal and interest amount. This will give you a clear picture of how much interest you are paying over the principal you are paying. You will notice that as you increase the tenure of the loan, the interest you will be paying on the same loan amount will be higher.

Please note here that the EMI on your home loan will depend upon the interest rate. In case your home loan interest rate is not fixed for the entire tenure, you EMI will keep on changing from time to time over the entire of the loan. Thus, in case your lender changes the interest rate on your home loan, you can revisit our home loan EMI calculator and calculate the EMI again based on the outstanding loan amount, new interest rate and the balance tenure of the loan.