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How To Calculate Home Loan Repayments?

· home loan emi

A Home Loan is a financial and legal agreement between two parties. The interest of both parties is taken into account and both must be preserved so that the financial agreement is honored.

Knowing prepayments of Home Loan is important as it helps you to plan your expenses better. So, let’s find out how to calculate Home Loan EMI with ease.


Online Calculator

You may use the EMI calculator available at the lender’s website. This is a simple tool which can be toggled to check repayments with various combinations. Here’s how.

> Go to the EMI calculator page on the lender’s website

> Set the loan amount, tenure and rate of interest

> It will give the monthly EMI you are needed to pay


Manual Calculation

You can even manually calculate the EMI of the Home Loan using this formula -

E = P * r * (1+r)^n / ((1+r)^n-1)


P is the principal or the amount which is borrowed

R is the rate of interest that is levied on loan amount

N is the tenure in months of repayment or the number of monthly installments that you have to pay

This is the same formula an EMI calculator uses to provide the correct monthly EMI payable within seconds.


Calculate Using Excel

You can calculate the EMIs using Excel. In this, you need to use the function PMT for calculating EMIs.

The formula uses the following syntax in Excel: PMT (rate, nper, pv).


Rate – Interest rate for the loan.

nper – Total number of payments for the loan.

pv – Present value/ principal.

Reference Read:

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