Role of Home Loan Calculator in Application Process | Kotak Mahindra Bank - Home Loan Stories
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16 FEBRUARY, 2022

A house is probably one of the biggest investments you make in a lifetime. It is a crucial financial decision involving lakhs of money. This is why you must carefully proceed after considering all the critical aspects and factors. Planning your home loan before applying can significantly help you in repaying it comfortably. There are many tools available online that can help you plan your home loan well before you apply for it. EMI calculator is one such tool. With the EMI calculator, you can determine the affordable loan amount and feasible tenure for you to ensure that you avail the right home loan.


Here is a brief guide on the EMI calculator. Continue reading.


What is an EMI calculator?

Home loan EMI calculator is an online tool that helps you calculate your affordability for a home loan. With this calculator, you can find your EMI value, total repayment amount and interest component of the loan by entering a few loan details. You can find the EMI calculator on the lenders or any aggregator’s website for free. An EMI calculator works on the following mathematical formula.


EMI = [P x R x (1+R)^N]/[(1+R)^N-1],




EMI - equated monthly installment

P - principal or the loan amount

R - the rate of interest for the loan (monthly)

N - tenure of the loan (monthly)


All you need to do is, input the relevant values and get the results.


Steps to use an EMI calculator


  • Visit your lender’s website and click on the home loan EMI calculator
  • Enter the loan amount you wish to avail
  • Enter the opted tenure
  • Enter the interest rates. Alternatively, you can also use the sliders to input values in the calculator.
  • Once you add the values, the results will be displayed instantly.
  • If you are not satisfied with the displayed EMI value, you can change the values to get another result(s).


Benefits of Using an EMI calculator


An EMI calculator can help you determine your affordability and make the right financial choices. By using an EMI calculator before applying for a home loan, you can make a suitable budget that is feasible for you. Here are some benefits of the home loan EMI calculator you must know about.


  • Aids in financial planning

With the calculator, you can get an affordable EMI and ensure that you can comfortably afford the loan amount. It can also help you in effective financial planning.


  • Is free and easily available

You can use a home loan calculator any number of times for free. It is accurate and leaves no room for errors. 


  • Can be used any number of times

You can alter the values of variables like loan amount and tenure to get an affordable EMI. You can use the calculator ‘n’ number of times anytime and anywhere.


An EMI calculator can help you determine your EMI before you apply for the loan. You can then plan your loan in a better manner. However, you must remember that it shows only indicative figures and the lender would tell you your exact EMI amount.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.