Home Loan Calculator
Calculate your home loan EMI online instantly by using the SMFG Grihashakti Home Loan EMI Calculator
Table of Contents
- What Is a Home Loan EMI Calculator?
- What Is Home Loan EMI?
- How Does the SMFG Grihashakti Home Loan EMI Calculator work?
- How Is Home Loan EMI calculated?
- Calculate the Interest Amount With a Home Loan Calculator
- What Are the Advantages of a Calculator for Housing Loan EMI?
- What Is the Home Loan Amortization Schedule?
- When Does Home Loan EMI Start and Become Due?
- Can I Prepay My Home Loan?
- What are the Factors That Can Affect Home Loan EMI?
- FAQs
What is a Home Loan EMI Calculator?
An EMI calculator for a home loan is an important tool in your journey to take a home loan successfully. It helps you calculate your home loan EMI quickly and decide on the ideal loan tenure so that your EMI can be managed within your monthly budget with ease. This helps you to make an informed decision about buying a new home.
Using the online calculator for home loans, you can know how tenor and rate of interest impact your EMIs and explore different repayment schedules that are affordable and suit your needs. Further, the payment calculator shows you the complete breakup of the payment schedule and instalment breakup (principal and interest amount) for the full tenure of the home loan.
This loan repayment calculator is an indispensable financial planning tool for a home buyer that lets you decide on the quantum of contribution towards a home down payment and ensure timely loan repayments.
What Is Home Loan EMI?
A home loan EMI, or Equated Monthly Installment, is a fixed, predictable payment you make to your lender each month over your chosen loan term. This payment breaks down into two parts:
- Principal Repayment: This gradually pays off the original loan amount you borrowed.
- Interest Accrued: This portion covers the borrowing charge and is calculated on the outstanding loan balance.
With the EMI system, you know exactly what to expect monthly, simplifying budgeting and financial planning for your dream home. This is where an EMI calculator for housing loans comes into picture.
How does SMFG Grihashakti Home Loan EMI Calculator work?
The SMFG Grihashakti Home Loan EMI calculator for home loans uses three basic inputs
Enter the home loan amount you are considering borrowing and the applicable rate of interest into the relevant field. Using the slider, adjust the loan tenure and the home loan calculator will automatically reflect the estimated EMI for the loan tenure.
The home affordability calculator also provides an amortization schedule that contains details of the year-wise repayment schedule for the entire loan tenure.
How Is Home Loan EMI Calculated?
EMI stands for equated monthly instalment is a systematic approach to repay the loan by the borrower to the lender in equal and fixed instalments by the end of the loan tenure.
An EMI consists of two components- the principal amount and interest due on the outstanding loan amount.
Compared to other categories of loans, the housing loan has a maximum tenure of up to 30 years, and the EMI can be planned according to your repayment capability.
The calculator for home loan EMI uses the following formula:
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]
P=Principal amount
N=Loan tenure in months
R=Monthly Interest rates
The rate of Interest (R) on your loan is calculated per month
All online principal and interest calculators use the above home loan EMI calculator formula to calculate EMI. By adjusting the rate of interest and loan tenure, you can check the EMI under different scenarios and tenure instantly.
For example, a house loan with a maximum tenure of 30 years will have a lower EMI payment compared to a loan tenure of 15 years. Although the EMI of a home loan with longer tenure is lower, the overall cost is higher because of the higher interest outflow.
Calculate the Interest Amount With A Home Loan Calculator
A home loan calculator is a free online loan estimator tool that calculates housing loan monthly EMI based on factors like home loan amount, rate of interest and loan tenure.
It also functions as a home loan interest calculator as it displays the interest component of the home loan during the entire loan tenure. Please do note, however, that the final interest rate offered to you will depend on several factors such as your Home loan eligibility and SMFG Grihashakti’s policy at the time of loan application.
The home loan interest calculator is a very helpful self-planning financial tool for home loan repayment planning to ensure timely EMI repayments and explore various repayment schedules by adjusting the loan amount and loan tenure in the mortgage calculator. Do note that the final monthly EMI may also have other components such as insurance and service charges. The EMI calculator for home loans provides you with a near-accurate estimate of your monthly EMI purely based on the loan tenure, interest rate and amount.
What Are the Advantages of a Calculator for Housing Loan EMI?
There are several benefits of using a home loan EMI calculator in India:
- Easy and quick calculation of home loan EMI
- Helps to choose the right loan tenure based on your disposable income, working as a convenient mortgage affordability calculator
- Is free and the calculator for housing loans can be used online from anywhere including mobile and computer
- Provides accurate results with speed and reliability
- Can be used as a home loan interest calculator,i.e, you can calculate the total interest applicable on your loan amount
- Help to calculate the EMI schedule
What Is the Home Loan Amortization Schedule?
While the EMI during the loan tenure remains uniform, the constitution of the EMI changes every passing month with each EMI payment.
For instance, at the start of home loan tenure, the interest component constitutes the major portion of the EMI due to higher interest outstanding. As the tenor progresses, the constitution of interest components continues to decline with every EMI payment, thereby increasing the share of the principal component.
This is where the amortization schedule provides the accurate break-up of principal and interest payout in each EMI with their respective balances across the tenor. In short, it provides a roadmap towards the repayment of the home loan and different milestones.
The table helps you in effective tax planning and claim deduction on both the home loan principal and interest repayment under different sections of the Income Tax Act.
An amortization schedule can be obtained from an amortization calculator.
Below is an example of a basic amortization schedule if you were to take a loan of INR 3,00,000 at an interest rate of 10% per annum to be repaid in a year:
| Year |
Opening Balance |
Interest paid during the year |
Principal paid during the year |
Closing balance |
| 1 |
INR 3,00,000
|
INR 16,497
|
INR 3,00,000
|
INR 0
|
In general practice, the home loan EMI starts from the following month of the loan disbursal and the EMI is due on a fixed date each month, which is notified at the time of disbursal or approval.
In the case of a moratorium on home loan EMI payment is agreed upon, it would start after the predefined period. However, the interest will continue to be added to your home loan during the period of the moratorium.
Yes, you can part-prepay your outstanding home loan amount, which can be several times your home loan EMI. The prepayment will result in a reduction in the outstanding home loan amount, thereby reducing your net interest expenses.
Here are the main factors affecting home loan EMI. Please note that this list is a basic one, and depending on the lender’s policy as well as the agreed-upon terms, additional documents may be requested.
The principal amount plays a large part in your EMI amount. The higher the loan amount borrowed, the higher the EMI. Thus, it is advisable to borrow the exact amount you need.
A higher interest rate will lead to a higher EMI amount. You can obtain the exact figures from a home loan interest calculator.
A longer tenure will allow a smaller EMI amount, but the total interest outgo over the tenure of the loan may be much higher.
Depending on the terms agreed upon with your lender, additional factors such as insurance, service fees, etc. may be added to your EMI amount.
Sometimes, lenders may allow salaried borrowers whose monthly income increases over the tenure of the loan, to pay a higher EMI amount.
Benefits (like the PMAY interest subsidy) that may be authorized some months after application may be provided to borrowers in the form of a reduced EMI.
Use a home loan EMI calculator online to calculate your EMI and select an appropriate tenure to strike the perfect balance between an amount that can fit within your budget and at the same time, enable you to repay the loan as soon as possible.