This calculator provides an estimated EMI based on the inputs provided. Actual EMI may vary based on lender policies and loan agreement terms.
Understanding Your Mortgage EMI
A Mortgage Equated Monthly Installment (EMI) is a fixed amount paid by a borrower to a lender on a specified date each month. This payment covers both the principal loan amount and the interest charged on that loan. Mortgages are typically long-term loans, and EMIs help make repayment manageable by spreading the cost over many years.
How is Your Mortgage EMI Calculated?
The EMI for a mortgage is calculated using a specific formula that takes into account the principal loan amount, the annual interest rate, and the loan tenure (duration). The standard formula for EMI is:
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 (e.g., if the annual rate is 8.5%, R = 8.5% / 12 / 100 = 0.0070833).
N = Loan Tenure in Months. This is calculated by multiplying the loan tenure in years by 12 (e.g., a 20-year loan has N = 20 * 12 = 240 months).
This formula ensures that with each EMI payment, a portion goes towards reducing the principal and another portion covers the interest accrued. Early in the loan term, a larger portion of the EMI goes towards interest, while later in the term, more of it goes towards the principal.
Key Components of Mortgage EMI:
Principal Loan Amount: The actual amount you borrow from the bank or financial institution to purchase your property.
Annual Interest Rate: The yearly rate at which interest is charged on the outstanding loan amount. This can be fixed or floating.
Loan Tenure: The total duration over which you agree to repay the loan. Longer tenures result in lower EMIs but higher total interest paid over the life of the loan.
EMI: The fixed monthly payment that includes both principal and interest.
Total Interest Payable: The sum of all interest payments made over the entire loan tenure. This is calculated as (EMI × N) – P.
Total Payment: The total amount repaid to the lender, which includes the original principal amount plus all the interest paid. This is EMI × N.
Why Use a Mortgage EMI Calculator?
A mortgage EMI calculator is an invaluable tool for several reasons:
Budgeting: Helps you understand how much your monthly housing payment will be, allowing you to determine affordability and budget effectively.
Loan Comparison: Enables you to compare different loan offers from various lenders by calculating the EMI for different interest rates and tenures.
Financial Planning: Assists in planning your finances by showing the total cost of the loan, including the principal and substantial interest over many years.
Scenario Analysis: Allows you to experiment with different loan amounts, interest rates, and tenures to see how they impact your EMI and overall loan cost. For example, you can see how a small reduction in interest rate or tenure can save you a significant amount of money.
Using this calculator can give you a clear picture of your potential mortgage obligations, empowering you to make informed decisions about your home financing.
function calculateEMI() {
var principal = parseFloat(document.getElementById("loanAmount").value);
var annualRate = parseFloat(document.getElementById("interestRate").value);
var tenureYears = parseFloat(document.getElementById("loanTenure").value);
var emiResultElement = document.getElementById("emiResult");
var totalInterestPayableElement = document.getElementById("totalInterestPayable");
var totalPaymentElement = document.getElementById("totalPayment");
// Input validation
if (isNaN(principal) || principal <= 0 ||
isNaN(annualRate) || annualRate <= 0 ||
isNaN(tenureYears) || tenureYears <= 0) {
emiResultElement.textContent = "Invalid Input";
totalInterestPayableElement.textContent = "Total Interest Payable: N/A";
totalPaymentElement.textContent = "Total Payment: N/A";
return;
}
var monthlyRate = annualRate / 12 / 100;
var tenureMonths = tenureYears * 12;
// Calculate EMI
var emi = principal * monthlyRate * Math.pow(1 + monthlyRate, tenureMonths) / (Math.pow(1 + monthlyRate, tenureMonths) – 1);
// Calculate Total Interest and Total Payment
var totalInterest = (emi * tenureMonths) – principal;
var totalPayment = emi * tenureMonths;
// Display results with Indian Rupee symbol
emiResultElement.textContent = "₹ " + emi.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
totalInterestPayableElement.textContent = "Total Interest Payable: ₹ " + totalInterest.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
totalPaymentElement.textContent = "Total Payment (Principal + Interest): ₹ " + totalPayment.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
}