How do I calculate EMI on home loan?

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  1. RavijShankar

    RavijShankar New Member

    What is the process of calculating home loan monthly installment can anyone explain the procedure of it.
     
  2. Arwind Sharma

    Arwind Sharma New Member

    It is pretty easy to calculate the EMI of any loan. To calculate the EMI you just need to know the principal amount of the loan, tenure and the rate of interest. The more will be the interest rate, the more will be your EMI.

    This is a simple and useful formula for the calculation:

    Formula:

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

    where is:
    E = EMI, P = The Principal Loan Amount, r = The rate of interest, ^ = the tenure/duration of the loan

    You can calculate the EMI by using the above mentioned formula in Microsoft excel or any electronic calculator. You can also use the basic formula that we used to do in our school level. That is the manual calculation of installment. Nowadays you can simply use the online home loan calculator for calculating the EMI this calculator save your time and show accurate result within a couple of minutes in your screen. Try Bajaj Finserv online home loan calculator: https://www.bajajfinserv.in/finance/home-loan/home-loan-emi-calculator.aspx
     
  3. [P x R x (1+R) ^n] / [(1+R)^ n-1].
    Here P is the principal loan amount
    R is the rate of interest per month
    and N is the number of monthly installments.
    Source: http://emicalculators.in/
     
  4. Diksha Agarwal

    Diksha Agarwal New Member

    Process to Calculate Home Loan EMI

    The EMI of your home loan can be calculated using 4 major factors such as:

    Principal Amount
    Interest Rate
    Loan Tenure
    EMI Computation Formula
    The basic formula to calculate EMI is as follows:

    Equated Monthly Installment (EMI) = P x r x (1+r)^n/((1+r)^n -1)

    With the online EMI calculator, you are no longer required to do manual calculations.

    First Visit the BankBazaar Site
    Enter the Loan Amount You Require
    The Rate of Interest Offered By The Bank
    The Loan Tenure to Calculate Your EMI on Home Loan
    In addition to the principal amount and interest, EMI also includes processing fees charged by the banks to process your loan. It is usually a small percentage of the principal amount. Most borrowers prefer to make prepayments on home loans. Therefore, the BankBazaar EMI calculator takes the prepayments into account while computing the EMI on your home loan.
    Ref Source : https://www.bankbazaar.com/home-loan-emi-calculator.html
     
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