Personal Loan

Home Loan and Personal Loan Eligibility Calculator


It’s always a dream for every Indian to buy and move into their own home. In the era of ever-increasing prices of real estate, home loan EMIs come as a saviour as they allow you to fulfil your dream of owning a home. 

One of the major factors that one should always consider is the monthly home loan EMI amount. It is so because you will be paying a fixed monthly EMI for several years, and it’s vital to know how well it fits into your budget. 

Before finalizing your dream home, it’s always a good practice to conduct a thorough research about different home loan EMI plans. This research will allow you to know the exact EMI amount you will be paying. The monthly EMI amount differs for everyone as it’s dependent on several factors including interest rate, loan amount, loan tenure, etc.  

This is where home loan calculators come into play, as they make EMI calculations a really simple affair. In this article, we are going to tell you everything you need to know about home loan calculators so that you don’t have to worry about the same. So let’s start.  

What is a Home Loan Calculator?

A home loan calculator is a simple yet really useful tool that calculates the monthly EMI you will be paying when you are opting for a home loan. All you need to do is enter the loan amount, loan tenure, and the EMI rate. 

Once you have entered the details, the home loan calculator would calculate the monthly EMI you will have to pay along with the total interest rate you will be paying throughout your loan period. 

Factors Affecting a Home Loan EMI

The final home loan EMI takes into account several factors including:

  1. Loan Amount

The loan amount is the sum of money you are borrowing from the lender that allows you to purchase your dream home. For example, if you are planning to purchase a home that costs you about 1 Cr, and you have made a down payment of Rs. 20 lakhs, then your loan amount will stand at Rs. 80 lakhs. 

  1. Interest rate

The interest rate is the rate at which the lender is lending you a fixed sum of money. Housing loan generally carries an interest rate of 8 to 13%, and it varies from lender to lender. Furthermore, the interest rate is divided into two categories: floating interest rate, and fixed interest rate. 

If you opt for a floating interest rate, the EMI amount changes over the years as you pay your monthly EMIs. On the other hand, if you have borrowed the sum of money at a fixed interest rate, your monthly EMI amount will remain the same throughout your loan tenure. 

  1. Loan Tenure

Loan Tenure refers to the time you will take to repay the loan. The longer the loan tenure, the lesser will be your monthly EMIs and the more interest amount on the home loan. 

These are the top three factors that a home loan calculator considers, and it gives you the final EMI amount after taking these factors into account. 

How do Home Loan Calculators Work?

Home loan calculators calculate your monthly EMI by using a simple formula:

Monthly EMI = [P x R x (1 + R)^N] / [(1 + R)^N – 1]


P= Principal Amount or Loan Amount

R= Interest rate charged by the lender on the loan amount

N= Tenure of the home loan in months. (for 5 years, N= 60 months)

Let’s say your loan amount is 80 lakh rupees, at an interest rate of 9%, and your loan tenure is 20 years. In this case, your monthly home loan EMI will be about Rs. 72,000, and you will be paying a total interest amounting to nearly Rs. 93 lakhs, and the original loan amount of Rs. 80 lakhs. So at the end of 20 years, you will have paid a total of Rs. 1.72 crores. 

Let’s say that you want to pay off this loan in 15 years. In this case, your monthly home loan EMI is about Rs. 81,000, and the total interest amount paid stands at about Rs. 66 lakhs. So, at the end of 15 years, you will have paid a total of Rs. 1.46 crores. 

It’s evident that if you can keep the loan tenure short, you might be able to save a lot of money in terms of interest amount. In the above case, shortening your loan tenure by 5 years increases your monthly EMI by 9,000 but it saves you Rs. 27 lakhs in interest paid. 

This is why home loan calculators are of great importance for anyone who is planning to take a home loan. These home loan calculators can be used to compare loan offers, and know the monthly EMI you will have to pay with every one of them. You can make the final decision of opting for a home loan lender that serves your needs the best. 

Why Should You Use a Home Loan Calculator?

There are several reasons why you should always use a home loan calculator before finalizing a home loan. 

  1. Allows You To Plan Your Loan Repayment

Home loan calculators not only tell you the monthly EMI you will be paying, but they also tell you the overall interest amount you will be paying. If you have a fixed budget for monthly EMIs in mind, you can shuffle between loan tenures to find a monthly EMI amount that fits well in your budget. 

  1. Simple and Convenient

Home loan calculators are a simple, easy & convenient tool to use, and they provide you with accurate information regarding your home loan payments. Additionally, they also reduce the room for human errors during calculations. 

  1. Helps in Comparing Loan Offers

When you are looking for a home loan, you will consider different lenders & offers. Each offer will affect your monthly EMIs differently, and these home loan calculators will help you compare these offers without any difficulties. 

Final Thoughts

If you are planning to take a home loan, you should always use home loan calculators before finalizing any offer. Home loan providers like Piramal Finance have a free-to-use home loan calculator on their website, and you can use them as many times as you want.