A home loan EMI is the fixed monthly payment you make to repay your home loan. Each EMI consists of two parts—the principal amount borrowed and the interest charged by your lender. The total EMI amount depends on factors such as your loan amount, home loan interest rate, and the tenure of your loan. To easily determine your monthly instalments, you can use a home loan EMI calculator. This simple, convenient EMI calculator online helps you instantly calculate EMI for a home loan in India, allowing you to manage your finances more efficiently.

Here is how you can easily use the Bajaj Markets home loan EMI calculator to plan your monthly payments accurately:

1. Visit the Bajaj Markets website and open the EMI calculator for a home loan

2. Enter the current home loan interest rate provided by your lender

3. Input the principal amount you wish to borrow

4. Select a loan tenure that suits your repayment capability

5. Click on ‘Calculate Now’ to instantly calculate EMI for a home loan in India

6. View the calculated home loan EMI, total interest, principal, and overall repayment amount clearly displayed

This calculator is completely free to use, allowing you to make unlimited adjustments and find a home loan suitable for you.

When you use an EMI calculator for a home loan, it applies a specific formula to give you an accurate monthly payment amount. The standard formula used by an EMI calculator online is:

E = [P x R x (1+R)N] / [(1+R)N - 1]

Here's what each part means:

• E is the home loan EMI (monthly instalment)

• P is the principal loan amount you borrow

• R is your monthly home loan interest rate (annual interest rate divided by 12, then by 100)

• N is the total number of months you'll repay the loan

Let’s simplify this with an example:

Imagine you take a ₹30 Lakhs home loan at a 9% annual interest rate for 20 years. First, convert the annual rate to a monthly rate, which is 9% ÷ 12 = 0.75% or 0.0075. The loan tenure in months is 20 × 12 = 240 months.

Using the formula:

E = [₹30,00,000 x 0.0075 x (1 + 0.0075)240] ÷ [(1 + 0.0075)240 - 1]

After calculation, your monthly home loan EMI comes to about ₹26,991.

Every EMI you pay has two parts—a principal and an interest amount. Initially, your EMI has a larger interest portion and a smaller principal portion. As you continue paying EMIs, the interest portion gradually reduces, while the principal repayment portion increases over time. This is how your home loan gradually gets paid off month by month.

These figures clearly show the monthly EMI, total interest, and overall repayment amount for various home loan amounts at a 7.45% annual interest rate over 30 years. Here is a detailed breakdown to simplify your home loan comparisons:

Disclaimer: The EMI amounts, total interest, and overall repayments shown above are calculated based on an interest rate of 7.45% p.a. and may vary depending on your lender’s terms. Please verify these figures with your lender or financial advisor before making financial decisions.

Here are the key factors you should know about that directly affect your monthly home loan EMI:

Loan Amount (Principal)

This is the total amount you borrow, and choosing a larger loan increases your monthly home loan EMI payments.

Home Loan Interest Rate

The interest rate is the cost you pay for borrowing; a lower home loan interest rate reduces your EMI significantly.

Loan Tenure

Your repayment duration matters—shorter tenures mean higher EMIs but lower total interest, while longer tenures mean lower EMIs and more interest.

Processing Fees

These fees, charged by lenders during loan approval, can slightly increase your loan amount and therefore affect your monthly EMI.

Prepayments

Making early repayments lowers your outstanding loan balance, which can decrease future EMIs and reduce overall interest payments.

Type of Interest Rate (Fixed or Floating)

Choosing a fixed or floating interest rate impacts your EMI consistency, with fixed rates keeping EMIs stable and floating rates causing fluctuations.

Credit Score

A high credit score improves your chances of a lower home loan interest rate, directly reducing your EMI payments.

Here are important points to remember for getting the most accurate results from your home loan EMI calculator:

Enter Accurate Information

Always enter the correct loan amount, tenure, and home loan interest rate to ensure your EMI calculations match your actual loan.

Explore Different Loan Terms

Use the EMI calculator online to experiment with different loan tenures and amounts to identify the best repayment scenario for you.

Understand Interest Rate Type

Know if your interest rate is fixed or floating, as this directly affects how your monthly home loan EMI payments are calculated.

Evaluate EMIs Across Tenures

Regularly check how adjusting your loan tenure affects monthly EMIs, total interest costs, and the affordability of the loan.

Factor in Additional Costs

Don’t forget to consider extra costs like processing fees and prepayment charges, which affect the overall expense of your home loan.

Check Monthly Affordability

Make sure the calculated EMI comfortably fits your monthly budget by carefully using the loan EMI calculator before finalising your loan.

Recalculate EMIs Periodically

Revisit your EMI calculations regularly, helping you adapt to any financial changes and determine if refinancing your loan makes sense.

Future Interest Rate Changes

Consider potential interest rate fluctuations, especially with floating rates, as these changes can alter your EMI amount during the repayment period.

Impact of Credit Score

Check your credit score using a housing loan eligibility calculator, as higher scores can secure better loan terms, reducing your EMI burden significantly.

The calculation results are based on the values you enter in the calculator. Your EMI amount (including the actual interest amount charged) will depend on the prevailing rates. The results are neither certified nor guaranteed. The repayment schedule presented is for illustration purposes. Confirm the values with your lender prior to applying for the home loan.