About Home Loan EMI Calculator & FAQs
What is an EMI?
EMI stands for Equated Monthly Instalment. It's a fixed payment amount made by a borrower to a lender (like a bank) at a specified date each month. EMIs are structured to pay off both the interest and principal components of a loan over its tenure.
How is the EMI calculated by this tool?
The calculator uses the standard mathematical formula for EMI: EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P = Principal, R = Monthly interest rate, N = Loan tenure in months.
What is an amortization schedule?
An amortization schedule is a detailed table showing the breakdown of each loan payment into its principal and interest components, and the outstanding loan balance after each payment. This calculator provides both monthly and yearly summaries.
Can I prepay my home loan? How does it affect calculations?
Yes, most banks allow prepayment. Prepaying can significantly reduce total interest and shorten tenure. This calculator assumes no prepayments.
What are the key factors that influence my EMI amount?
The three primary factors are: Loan Amount (higher loan = higher EMI), Interest Rate (higher rate = higher EMI), and Loan Tenure (longer tenure = lower EMI but more total interest).