Home Loan EMI Calculator with Detailed Analysis

Loan Amount:
Interest Rate:	% Annual
Loan Tenure:	years

Home Loan EMI Calculator

It is a universal calculator for calculating loan EMI. This calculator can be used as SBI HDFC AXIS Bank Home Loan EMI Calculator. This can also be used to calculate EMIs for personal and car loan.

It is a simple, accurate, and Mobile Friendly Home Loan EMI Calculator. Bookmark it for your quick access!

How to use

Enter loan amount in any currency
Enter loan annual interest rate
Enter loan tenure in years
Click "Calculate EMI" to calculate EMI
Click "Reset" to empty all fields

Output

Once you click the "Calculate EMI" button, you will see results right beneath the calculator. Output covers,

EMI - Equated Monthly Installment to be paid per month
Total Interest to be paid till loan closure
Total amount (Principal + Interest) to be paid till loan closure

Note

The calculator considers the interest rate as fixed interest rate and calculates EMI accordingly. These days most loan, especially house loan rely on variable interest rate, which means interest rate can change anytime, and so can your EMI and other calculations.
By default, the calculator shows calculation for a loan amount of 1,00,00,000, an interest rate of 7.6% per year, and a loan tenure of 20 years.

Home Loan General Guide

This one video will clear many of your doubts related to Home Loan. A must watch video for Home Loan borrower.

What is EMI

EMI stands for Equated Monthly Installment. It's the fixed installment payable every month. Change in interest rate leads to change in EMI.

EMI has 2 parts,

Principal
Interest

So each time you pay an EMI, you are re-paying some part of your principal loan amount and thus reducing outstanding debt, and of course you are paying interest which is the absolute loss.

As you keep paying EMIs, your principal outstanding keeps decreasing, and since the principal loan is decreasing the interest also decreases. In other words, every month principal outstanding debt reduces and interest also reduces.

Now since the EMI remains constant (considering interest rate remains same) every month, the principal portion of EMI keeps increasing every month and the interest portion of EMI keeps decreasing.

When loan ends

Once your principal outstanding amount becomes zero, loan ends.

How to close loan early

You have 2 choices,

1. Increase EMI amount.

Interest portion of EMI remains constant and is calculated on outstanding loan amount. So if you increase EMI, essentially you are increasing the principal portion of the EMI, so with increased EMI, you re-pay more principal and thus loan closes faster.

2. Keep pre-paying some part of principal

You can continue to pay EMI, additionally you can pay some amount whenever you have surplus fund - this is called part prepayment. So this part prepayment amount directly reduces your principal outstanding amount and the loan closes faster.

Loan transfer

If you are not happy with current lender for any reason, be it service, interest rate or anything, you can always choose to shift to another lender - this is called outstanding loan transfer.

This is not as simple as it sounds. Note below points,

You may have to pay again legal charges, processing charges and taxes at new lender
You may also have to pay mortgage charges on outstanding amount
You need to get fresh approval at new lender for your loan and property
You need to manually apply at current lender to request transfer

How to reduce interest rate

It's a common practice for most lenders to offer better interest rates to new customers and keep yielding more interest rates from existing customers, but at the same time they do offer means of reducing interest rates for existing customers - this is called loan interest rate conversion.

By availing Loan interest rate conversion, you can get your interest rate reduced. Note below points before applying conversion,

Conversion is not free, you have to pay fees. Check with your lender for conversion charges
Conversion fees can be negotiated. You can try to ask reasonable discount to reduce interest rate
Make sure that post conversion interest rate is significant, if the difference is not much, then conversion fees may not be worthwhile. Check EMI pre and post conversion interest rate using above calculator.

Charges for prepayment

No charges in India - RBI guidelines. Prepayment is free, you can pay part or all of the outstanding principal without any additional charges. Note below on part prepayment,

Most lenders don't provide online prepayment facility, thus making it difficult for customers to prepay and cut down loan outstanding faster. Check below videos for detail,

Most lenders have rules for prepayment. Most common rules are, you can pay only from 1st to till 25th of every month, and prepayment amount should be equal or more than EMI (monthly installment), and prepayment can be done only limited number of times in a month. Check below video for details,

Hope you liked the calcy. Have a question or suggestion? Please put it in the comments below.

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