EMI Calculator
Home Loan EMI Formula – How Home Loan EMI Calculator Works?
All online EMI calculators use a specific formula for calculating your home loan EMI amount, which is as follows: –
Where P, R & N are variable, which means the EMI value will change every time you change any of the 3 variables.
P stands for principal amount. It is the original loan amount given.
R stands for rate of interest per month. (If the rate of interest per month is 7% then the value of R will be 7 / (12 x 100).
N stands for loan tenure in months
Assuming that you have taken a loan of Rs.60lakhs for a tenure of 20 years at an interest rate of 7%, the EMI will be calculated as follows: –
[P=60 lakhs, R= 7%p.a. i.e. 7/ (12×100) p.m & N=20 years or 240 months]
EMI= [60, 00,000 x 7/ (12×100) x (1+7/ (12×100)) ^ 240] / [(1+7/ (12×100)) ^ 240-1]
EMI= Rs. 46,518/-