How is EMI on Home Loan Calculated?
The EMI on a home loan is calculated using a formula that considers the loan's principal amount, the tenure in months, and the monthly interest rate. The formula for calculating Equated Monthly Installment (EMI) for a home loan is as follows:
EMI= [P x R x (1+R)^N]/[(1+R)^N-1]
Where P = Loan’s principal amount
R = Monthly rate of interest
N = Tenure of the loan (in months)
For a home loan amount of 50,00,000 INR for 20 years and the yearly rate of interest of 6.55%, the EMI amount will be computed as follows:
EMI = [50,00,000*0.005*(1+0.005) ^240]/[(1+0.005)^240-1] = 37,426 INR
Home Loan Calculator Features and Benefits
Here are the benefits you can enjoy with Kotak Mahindra Bank’s housing loan EMI calculator:
- It is a simple and user-friendly home loan EMI calculator anyone can use.
- The home loan interest rate calculator helps you find out the exact amount of interest and compare the interest rates and tenure.
- You can calculate the amount in just a few minutes
- It helps decide on the loan tenure the borrower should choose while keeping his monthly expenses and other loan EMIs in mind.
- It assists in better financial planning
- It helps the borrower determine the accurate EMI amount payable
How to use Kotak Mahindra Bank’s Home Loan Calculator?
Kotak Mahindra Bank provides a simple and convenient housing loan EMI calculator in India. By entering the home loan amount, interest rate, and loan tenure (in years), you can get an exact EMI value displayed in seconds.