Top 10 Things you Must Know About Home Loan EMI Calculator

Home Loan Emi Calculator

Applying for a home loan can be a blissful experience when you know its rules. However, since home loan repayment terms can be as high as thirty years, proper planning is paramount for getting the maximum benefits. A home loan EMI calculator is an excellent free tool to sort your finances well before applying for a loan. However, before using a home loan EMI calculator, you must get the facts straight. This article discusses the top-10 things you need to know while using a home loan EMI calculator.

Here are 10 things you need to know about the Home Loan EMI Calculator:

1. Your Eligibility Determines the Interest Rate

Borrowers often believe that the EMI displayed by a home loan EMI calculator is the final figure. However, this is not the case. Home loan EMI depends on the borrower’s eligibility. If your loan eligibility is high, lenders will offer you lower rates and hence, your EMI amount will be more affordable than someone with low eligibility. Hence, it is wise to check your home loan eligibility before using a calculator.

2. Home Loan Calculator is Free

Be cautious if a lender asks you to pay money to inform you about the EMI amount. Most reputed Indian lenders provide home loan EMI calculators for free. You can visit such a lender’s website and calculate your EMI without paying anything. Knowing the EMI amount is crucial to choosing the right amount and term.

3. Check Home Loan Eligibility

You can also use a home loan EMI calculator to check your eligibility. Usually, lenders approve up to 90% of a house’s market value as a loan. However, the final loan amount depends on the borrower’s eligibility. You may use a home calculator to understand what lenders think about your financial profile and get the best estimate.

4. Know the Formula For Calculating Home Loan EMI

A home loan calculator uses a simple formula to calculate and display the home loan EMI amount.

Here is the formula to calculate home loan EMI:

E = P*r*(1+r)^n/((1+r)^n-1))
Here, E refers to the EMI, and P is the Principal or Loan Amount. Also, r means the applicable interest rate, and n means the loan repayment term. So, you may also use this formula to calculate home loan EMI like an online calculator. However, since the chances of errors are more in manual calculations, sensible borrowers use free online home calculators to calculate the score.

5. No Need to Enter Personal Details

A home loan EMI calculator does not need your personal details, such as name, phone number, email address, bank account details, etc. The only figures a home calculator will ever need are the principal, interest rate, and repayment term. So, if your lender asks for anything extra, refrain from using the calculator unless you are ready to get bombarded with unlimited emails, calls, and messages.

6. Comprehensive EMI Calculator

While almost all home loan EMI calculators provide you with information about the EMI, some calculators also let you know the taxes, insurance amount, and processing fee you have to pay when availing of a home loan. You can get more information by using such comprehensive calculators. However, do not worry if you are unable to find a comprehensive home calculator since lenders are always ready to serve you with accurate information.

7. No Impact on Credit Score

Every time you apply for a loan, the lender fetches your credit score from a credit bureau like CIBIL. And too many credit score checks can reduce your credit score. In contrast, you can check your home loan eligibility and EMI as many times as you want using a home calculator. Using a home calculator does not make you vulnerable to reducing your credit score.

8. Loan Agreement

Remember the information you entered on a home calculator while availing of a home loan. Once you apply for a home loan and the lender approves it, the latter will include these details on the loan agreement. Check whether the details have been mentioned accurately or not to get the maximum from a home loan.

9. Amortization Schedule

A home loan EMI calculator may also display the amortization schedule if you want. The amortization chart displays the detailed division of your EMI. EMI has two components – principal and interest. The amortization schedule lists out the amount you need to pay on each head.

10. Use the Home Calculator Data to Negotiate the Rates

It is commonly observed that lenders offer a higher interest rate than what is being displayed on a home calculator. This is because the effective interest rate depends on the borrower’s eligibility. However, you may use the home calculator data to negotiate the rates.


Using a home loan EMI calculator is mandatory to get the best rates and check your home loan eligibility. Making sensible financial decisions is only a step away when a home calculator is by your side. We hope this Article is helpful for you. To know how this tool will useful in financing your dream home we will help you , For more be with us and make your dream true .

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