Difference Between Home Loan EMI & Affordability Calculator | Kotak Mahindra Bank - Home Loan Stories
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16 MARCH, 2022

Understanding the different aspects of a home loan could be challenging for a layman who is not well versed in banking and financial jargon. As a borrower, you might face difficulties understanding your affordability, EMI, stamp duty obligations, taxability, interest component etc. While you can understand every detail by approaching the lender, it could take time and delay your application process. To save time, lenders offer different calculators to help you calculate your values yourself. Every calculator has a different purpose to help you find your affordability, EMI, etc. before you even apply. However, the availability of different options can confuse you. For example, you could be confused about the difference between home loan affordability calculators and EMI calculators. If you want clarity, go through the information below.  


What Is a Home Loan EMI Calculator?

A home loan EMI calculator is an online computation tool that you can use to calculate your EMI, loan amount and total cost of borrowing. With this calculator, you can find a suitable home loan plan for you and determine if the loan amount is affordable for you. An EMI calculator works on the following mathematical formula.


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




EMI - equated monthly instalment

P - principal or the loan amount

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

N - tenure of the loan (monthly)


What Is a Home Loan Affordability Calculator?

A home loan affordability calculator is an online tool that can help you find the maximum amount of property cost you can afford. An affordability calculator uses variables like existing EMI, monthly salary, tenure, down payment, etc. With the help of a home loan affordability calculator, you can determine the amount of home loan you are eligible for.


Difference Between a Home Loan Affordability Calculator & EMI Calculator



An EMI calculator can help you find a suitable loan for you. With this calculator, you can find out the EMI amount you need to pay for the loan.

With the affordability calculator, you can calculate the loan amount you can afford. It can help you find the maximum loan amount you can avail with your eligibility.

Input variable

To use an EMI calculator, you need to input the home loan amount, interest rate and loan tenure.

To use an affordability calculator, you need to input your monthly salary, existing EMI, loan tenure, current interest rates and down payment.


You will get your EMI amount, interest outgo and total cost of borrowing.

With this calculator, you will get the property cost you can afford.



Using home loan calculators can save a lot of your time and effort while helping you plan your loan in a better manner. Though an EMI calculator and home loan affordability calculator seems similar, there are a few aspects that differentiate them. These calculators can help you determine the best loan amount and find the perfect property for you. However, you must use the right calculator to fulfil the different purposes. Visit Kotak Mahindra Bank’s website and apply for home loans, today.


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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.