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How to Calculate Home Loan EMI

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Created on
January 12, 2023


What’s Inside

What are EMIs?

EMI stands for Equated Monthly Instalments. You can repay this amount in parts or instalments when you borrow money - a loan or a credit card payment. Each instalment includes the interest along with the principal amount. The total number of instalments is spread across your loan repayment tenor.

How to calculate home loan EMI: The formula 

Here, P is the principal borrowed, R represents the interest rate, and N is the loan tenure in years.

How to calculate EMIs for a loan using an online calculator

Fi’s home loan EMI calculator is a free online tool that quickly computes the home loan EMI you must pay based on specific inputs you need to provide.

Once you input these details, the home loan EMI calculator will instantly compute the EMI you need to pay each month, the total interest payable, and the repayment schedule. 

Importance of calculating the EMI before taking a loan

You might argue that the bank or lender will give you the exact repayment schedule and that you don’t have to worry about calculating this. But where this comes in handy is in helping you visualize if you will have the funds available to make these EMI payments for the said amount of time and if you’ll be able to pay these EMIs for this specified period.

It’s quick and easy to use

It is very easy to use a home loan EMI calculator. All you need to do is enter the above mentioned details, and the calculator works things out for you.

It makes home loan planning easier

You can plan your borrowing smartly by checking how your home loan EMIs vary based on the different parameters entered. The online tool helps you identify the amount of the loan and the repayment tenure. This helps you plan your finances accordingly.


If you find it too complicated, you can always use Fi’s home loan EMI calculator to help you plan your borrowing before you avail of a loan. Just ensure that you don’t take a loan beyond your means and end up paying EMIs that will squeeze you into a corner, financially speaking.

Frequently Asked Questions (FAQs)

1. What is home loan EMI?

A home loan EMI is the sum a borrower pays the home loan lender each month. This sum includes a part of the principal borrowed and the interest calculated on it. The exact amount of the EMI depends on various factors, like the amount borrowed, the rate of interest on the loan, and the repayment tenure.

2. How does a home loan EMI calculator work?

Fi Money’s home loan EMI calculator is a simple yet effective tool that makes it easier to compute the monthly amount you will have to repay. Want to know how to calculate the EMI for home loans in India using this tool? Here’s what you need to do. 

  • Step 1: Enter the amount of the loan 
  • Step 2: Enter the rate of interest on your home loan
  • Step 3: Enter the repayment tenure in years

That’s all you need to do. The calculator will then display the EMI amount, the principal amount, the total interest charged, and the complete amortisation schedule. 

3. What is the formula for calculating home loan EMI?

The formula to calculate home loan EMI is as follows: P x R x (1+R)N ÷ [(1+R)N-1] 

Here, P represents the principal borrowed, R is the interest rate, and N is the loan tenure in years.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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