# Housing Loan EMI Calculator

Calculating any sort of loan EMI is difficult unless you’re a calculus expert. Furthermore, when it comes to a housing loan, evaluating it correctly is crucial; otherwise, you’ll fall into a debt trap. Therefore, Calculator EMI’s Housing Loan EMI Calculator makes it simple and quick to solve.

Moreover, it is simple to follow; firstly, enter the amount (for buying) or the current value of your property (for refinancing) next to the field labeled. Following that, submit the rate of interest and the loan term. Your interest rate will change depending on whether you’re buying or refinancing. But you can calculate any sum that you want to plan better for your financial aid.

## Expenses Covered by a Housing Loan Payment

The principal and interest make up the majority of your monthly mortgage payment. Furthermore, this is also how most loans work. The difference between the principal and interest is what you pay the lender for the borrowed amount. The lender (or servicer) would then normally pay your insurance provider and the local assessor of property taxes directly with this money.

• Principal: This is the amount you borrow from the lender.
• Interest: This is the fee the lender assesses for extending you a loan. Furthermore, all loans are changed with an annual interest rate percentage.
• Property Taxes: Your property(collateral or mortgage for loan) is subject to a yearly tax by the local government.
• Homeowners Insurance: Your insurance coverage can cover damage and monetary losses caused by a tree falling on your house, a fire, a storm, a theft, and other perils. Your monthly insurance payment is one-twelfth of the annual premium, much like with property taxes, and your lender or servicer will make the remaining payment when it is due.
• Mortgage Insurance: If your down payment is less than 20% of the property value, then you’ll be responsible for this. A lender has to bear the mortgage insurance, which is also added to your monthly payment.

### Housing Loan EMI Calculator Formula

To determine the amount of your upcoming monthly mortgage payment, our Housing Loan EMI Calculator will assist you with every arithmetic solution. The free online tool by calculatoremi.com uses the following formula —

E = P * r (1 + r) ∕ (1 + r)n – 1

 E Total EMI payable each month N The total tenure in months R The rate of interest payable every month P Determines the principal amount

You can use this calculation to calculate how much house you can afford. Using our calculator, you can eliminate the guesswork and determine whether you’re putting down enough money and whether you should or can change your loan tenure. Always search around for rates with other lenders to be sure you’re getting the best deal possible.

For example, if a potential borrower takes a loan worth Rs. 40 Lakhs for a tenure of 10 years at an agreed-upon interest rate of 6.9%. So, according to the formula, the EMI will be ₹46,237.

Here is the amortization schedule of the above example;

 Year Principal (A) Interest (B) Total (A+B) Outstanding Balance 2022 ₹46,607.61 ₹45,866.39 ₹ 92,474.00 ₹40,00,000 2023 ₹291,153.27 ₹263,690.73 ₹554,844.00 ₹3,953,392.39 2024 ₹311,890.54 ₹242,953.46 ₹554,844.00 ₹3,662,239.12 2025 ₹334,104.77 ₹220,739.23 554,844.00 ₹3,350,348.58 2026 ₹357,901.21 ₹196,942.79 554,844.00 ₹3,016,243.81 2027 ₹383,392.56 ₹171,451.44 554,844.00 ₹2,658,342.60 2028 ₹410,699.47 ₹144,144.53 554,844.00 ₹2,274,950.04 2029 ₹439,951.37 ₹114,892.63 554,844.00 ₹1,864,250.57 2030 ₹471,286.64 ₹83,557.36 554,844.00 ₹1,424,299.20 2031 ₹504,853.82 ₹49,990.18 554,844.00 ₹953,012.56 2032 ₹448,072.89 ₹14,297.11 ₹462,370.00 ₹448,158.74

#### How Can a Housing Loan EMI Calculator Help?

Determining your monthly house payment is essential as you plan your housing budget. EMIs are likely to be the most significant chunk of your expense. You may calculate your estimated mortgage payment using Calculator EMI’s housing loan EMI calculator as you look for a buyer loan or a refinance. Alter the information you enter into the calculator to examine different scenarios.

• You can use the calculator to determine the ideal loan term that you can manage without falling into any debt trap. A 30-year fixed-rate mortgage is generally the best option if your spending plan is set. Although you’ll pay more interest over the duration of these loans, the monthly installments are lower. A 15-year fixed-rate mortgage lowers your overall interest, but your monthly principal payment will be increased.
• If your expenditure exceeds your means. The EMI calculator gives you a general idea of the monthly payment amount, including taxes and insurance.
• You can make intelligent decisions when thinking about how much to deposit. The typical down payment is 20 percent; however, this is not a requirement. Many debtors only put down 3 percent.

Because of this, comparing the EMIs for various housing loan amounts is easy. Furthermore, comparing the different interest rates of different financial institutions is hasslefree. Therefore, keep your first stop at our online Housing Loan EMI Calculator when planning for a loan.