Monday 2 October 2023
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How To Calculate Home Loan EMI?

How To Calculate Home Loan EMI?

Luxury apartments in Mumbai have taken over a major part of Mumbai’s skyline in the last many years. Life today is all about comfort and style. More and more people are looking to live in the moment and live life king size with deluxe amenities by their side. This has given rise to the demand for luxury housing spaces. However, the cost of buying a house in a city like Mumbai can be high. While it may be hard to cover such an expense with savings, a home loan can help you divide the load.

Home loans offer easy financial solutions like EMIs or equated monthly instalments that let you pay off your debt slowly over time. However, before you settle on a loan, it may help to determine the value of your EMIs. This can help you pick a suitable house that fits your budget and ensure that you do not face any financial issues in the years to come.

Calculating the home loan EMI

One of the simplest ways to calculate the EMI for your home loan is by using an online calculator such as Piramal Realty’s home loan EMI calculator, which computes the EMI based on your inputs. You can enter the following information on the easy-to-use online tool:

  1. Loan amount
  2. Interest rate
  3. Loan term in years

Lastly, all you need to do is click ‘Submit’, and the calculator will show you the EMI for each month.

Here’s an example:

If you apply for a loan for ₹10,370,000 at an interest rate of 6.5% and a loan tenure of 15 years, your EMI per money will be ₹1,96,640. However, if you pick a loan tenure of 20 years for the same loan amount and interest, your EMI will reduce to ₹77316.

The home loan EMI calculator can help you compare different loan offers, their interest rates, terms, and more when you are looking for luxury apartments in Mumbai. So, you can select the loan that is the most cost-effective. You can enter different figures on the calculator to determine the best loan deal for your requirements. You can also use the calculator to check your EMI if you decide to prepay your loan. Likewise, the calculator also helps you identify your home’s appropriate down payment value.

Other ways of calculating the home loan EMI

You can calculate the EMI manually using the following formula:

[P x R x (1+R) N] / [(1+R) N-1]


  • P = the principal loan amount
  • R = the rate of interest charged monthly
  • N = the term of the loan or the total number of EMIs

Here’s an example:

Suppose you apply for a home loan with a principal amount of ₹16,000,000. The rate of interest is 6.5%, and the tenure is 20 years. Here’s how you will calculate the EMI using the above formula:

[16,000,000 x 6.5 x (1+6.5) 20] / [(1+6.5) 20 – 1] = 119292

So, your monthly EMI will be ₹119292.

However, manually calculating the home loan EMI can be confusing, time-consuming, and may lead to errors if not calculated carefully. If you are not good with numbers, you may commit an error and pick a home loan that may not fit into your budget as seamlessly as you hope. Moreover, calculations can take a lot of time with such large figures. Comparing different loan deals can also be cumbersome.

So, using a home loan EMI calculator may offer you more convenience in comparison.

To sum it up

Using a home loan EMI calculator can be of great help if you are looking for luxury apartments in Mumbai. It can help you plan your purchase, select a suitable loan amount and ensure that you can comfortably repay the EMIs without any stress.

Additionally, if you want to purchase a beautiful luxury apartment from a renowned real-estate developer such as Piramal Realty, a home loan EMI calculator can be a great tool to help you plan your purchase better!