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How to Calculate Home Loan EMI

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How to Calculate Home Loan EMI

Table of Contents

What are EMIs?

EMI stands for Equated Monthly Instalments. When you borrow money - a loan, or a credit card payment - you’re given the option of paying this amount back in parts, or installments. Each installment includes the interest along with the principal amount. The total number of insallments is spread across the your loan repayment tenor.

How to calculate home loan EMI: The formula used

Here, P is the principal borrowed, R represents the rate of interest, and N stands for 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 will have to pay based on certain inputs that 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 as well as the repayment schedule. 

Why you should calculate the EMI amount 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 stuff. But where this comes handy is in helping you visualize is you will have the funds available to make these EMI payments for the said amount of time, and also if you’ll be able to pay these EMIs for this specified time 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 details mentioned above, and the calculator works things out for you.

  • It makes home loan planning easier

By checking how your home loan EMIs vary based on the different parameters entered, you can plan your borrowing in a smartly. The online tool helps you identify the amount of 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 a loan. Just ensure that you don’t take a loan beyond your means and end up paying EMIs that will squeeze you to a corner, financially speaking.

Frequently Asked Questions (FAQs)

  • What is home loan EMI?

A home loan EMI is the sum that 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.

  • 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 amount you will have to repay each month. Want to know how to calculate the EMI for home loan in India using this tool? Here’s what you need to do. 

  • Step 1: Enter the amount of 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, as well as the complete amortisation schedule. 

  • What is the formula to calculate 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 rate of interest, and N is the loan tenure in years.

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