Calculate your Home Loan EMI with the help of the EMI Calculator

Living in your own house is everyone’s goal. The home loan makes it easy for everyone to buy their dream homes. But before applying for a loan, it is necessary to know all the important aspects like home loan rate of interest, EMI, etc. Calculating the different aspects of a home loan gives you the advantage of choosing the right loan with an affordable home loan rate of interest and EMI. Here we have provided all the important info to calculate home loan EMI easily. 

Important components required to calculate home loan EMI

The important components required to calculate home loan EMI are as follows –

  • Loan Amount – The loan amount you need for a home loan repaid with some interest as monthly EMIs. The lender determines the maximum loan amount you may obtain based on your repayment capacity.
  • Loan tenure – It is the duration for which you want to pay your home loans. The loan tenure you select is inversely proportional to the EMI. If you have a longer term, you may pay more interest. 
  • Home loan rate of interest – The home loan rate of interest is the interest charged by your lender for your home loan. The greater the interest rate, the higher the EMI.

Different ways to calculate home loan rate of interest

There are different ways to calculate home loan EMI per the interest rate and other factors. Different ways to calculate your home loan are given below.

Calculate home loan rate of interest and EMI via online calculators

There are different online calculators to Calculate home loan EMI. You can use any online EMI calculator by the different financial institutions of your choice. But you have to note that when you enquire on the bank’s website, they may ask for personal info and other details, which may be used when you apply for a loan on their portal. 

Manual methods to Calculate home loan EMI

You can use manual methods if you do not want to use online calculators to Calculate home loan EMI. Some of the manual methods are given below.

Calculate home loan EMI By using a formula 

Mathematically, EMI can be calculated by:

                               P x R x (1+R) N

                                 {(1+R) N-1}


P = Principal amount of the loan

R = Rate of interest (monthly) = Annual rate of interest/12/100

N = Number of monthly instalments required

Calculate home loan EMI using excel

The PMT function in Excel is used for computing the EMI. Here, three variables are required, which are the interest rate (rate), the Loan tenure (T), and the loan amount (L).

In Excel, the formula used in the EMI calculator for a home loan is

                                                                      = PMT (rate, T, L)

When you are using this formula following things, you have to take care of –

  • You must use the formula in the cell you want to get the EMI.
  • The monthly interest rate will be utilised in the formula, which is calculated by dividing the yearly rate by 12.
  • The loan tenure is utilised monthly, which is obtained by multiplying the yearly rate by 12.
  • The outcome will be negative or red, indicating the borrower’s cash outflow.


Now, you understand the different EMI calculators for a home loan and checking Home loan rate of interest & how to use them effectively before applying for a loan. You can calculate home loan EMI on your own without trouble by using any of the methods mentioned above. For better understanding, it is preferred to adopt the EMI calculator for quick and accurate calculation. However, if you are into a long term planning, then opt for the excel sheet option. 

Ahsan Amaan

Ahsan Amaan is a results and data-driven 'Certified Digital Marketer' & SEO Expert. He has 2+ years of experience in SEM, SEO, SMM, Google Ads, marketing evergreen content, and increasing overall website rankings. Worked professionally as a 'Digital Strategist' with Google Analytics, Search Console, AdWords, and Social Media Ads.