A home loan is a financial product that helps individuals purchase a residential property. It's a long-term loan, typically repaid over 15 to 30 years, with the property itself serving as collateral. The Equated Monthly Installment (EMI) is the fixed amount paid by the borrower to the lender on a specified date each month, throughout the loan tenure. This EMI comprises both the principal amount and the interest charged on the loan.
How is your EMI Calculated?
The EMI for a home loan is calculated using the following formula:
EMI = P * r * (1 + r)^n / ((1 + r)^n – 1)
Where:
P = Principal Loan Amount (the total amount borrowed).
r = Monthly Interest Rate. This is calculated by dividing the annual interest rate by 12 (and then by 100 to convert percentage to decimal). For example, if the annual rate is 8.5%, the monthly rate 'r' is 8.5 / 12 / 100 = 0.007083.
n = Loan Tenure in Months. This is calculated by multiplying the loan tenure in years by 12.
Example Calculation:
Let's assume:
Loan Amount (P) = ₹50,00,000
Annual Interest Rate = 8.5%
Loan Tenure = 20 Years
First, we convert these to the required values for the formula:
Total Interest Paid = (EMI * n) – P = (43,871 * 240) – 50,00,000 ≈ ₹55,29,040
Total Payment = Total Principal + Total Interest = 50,00,000 + 55,29,040 = ₹1,05,29,040
Why Use This Calculator?
Informed Decisions: Quickly estimate your monthly outflows before applying for a home loan.
Budgeting: Plan your finances accurately by knowing your EMI commitment.
Loan Comparison: Easily compare loan offers from different lenders by varying interest rates and tenures.
Understanding Costs: See how changes in loan amount, interest rate, or tenure affect the total interest paid over the loan's life.
By using this Home Loan and EMI Calculator, you can gain a clearer understanding of the financial implications of purchasing a home and make more confident decisions.
function calculateEMI() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTenure = parseFloat(document.getElementById("loanTenure").value);
var emiResultElement = document.getElementById("emiResult");
var totalInterestElement = document.getElementById("totalInterest");
var totalPaymentElement = document.getElementById("totalPayment");
// Clear previous results and styling
emiResultElement.innerHTML = "–";
totalInterestElement.innerHTML = "";
totalPaymentElement.innerHTML = "";
if (isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTenure) || loanAmount <= 0 || interestRate <= 0 || loanTenure <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
var monthlyInterestRate = interestRate / 12 / 100;
var loanTenureInMonths = loanTenure * 12;
// Calculate EMI
// Formula: EMI = P * r * (1 + r)^n / ((1 + r)^n – 1)
var powerN = Math.pow(1 + monthlyInterestRate, loanTenureInMonths);
var emi = loanAmount * monthlyInterestRate * powerN / (powerN – 1);
// Calculate Total Payment and Total Interest
var totalPayment = emi * loanTenureInMonths;
var totalInterest = totalPayment – loanAmount;
// Display results
emiResultElement.innerHTML = "₹" + emi.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
totalInterestElement.innerHTML = "Total Interest Payable: ₹" + totalInterest.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
totalPaymentElement.innerHTML = "Total Payment (Principal + Interest): ₹" + totalPayment.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
}