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2 mins Read | 1 Year Ago

Step-by-Step Guide on How to Calculate Home Loan EMI


A Guide on How to Calculate Home Loan EMIs

When it comes to purchasing a residential or commercial space, you will most likely apply for a loan. You may also think “how much loan can I get?” For this, you will need to assess your finances, credit rating and the amount of monthly instalments you can afford.

A Home Loan Eligibility Calculator is an online tool that makes it easy for you to apply for a loan.

However before applying, it is quite important to understand the financial commitment and plan a budget accordingly. For this, the most important aspect will be the Equated Monthly Instalment (EMI), which will be the monthly amount for repaying your loan over a set period of time. In this blog post, we will guide you step by step on how to calculate your home loan EMI and tell you why using home loan calculators in India has gained so much traction recently. We will also touch upon the factors that affect your loan eligibility and how much loan you can get.

Understanding Home Loan EMIs

Equated Monthly Instalment (EMI) is a fixed monthly payment that a borrower makes to the lender, which comprises both the principal amount and the interest. The proportion of each EMI used for repaying these two components changes over time? The first few EMIs go primarily towards paying the interest while the later EMIs go more towards repaying the principal amount. Calculating your EMI will help you plan out a monthly budget and assess your repayment capacity.

How to calculate Home Loan EMIs manually:

Gather the necessary information

  • Loan amount: The total amount you plan to borrow from the lender

  • Interest rate: The annual interest rate charged by the lender on your loan

  • Loan tenure: The number of years or months you will take to repay the loan.

Convert the interest rate

If the interest rate is on an annual basis, convert it to a monthly rate by dividing it by 12. For example, if the annual interest rate is 8%, the monthly interest rate would be 8%/12 = 0.0067 (approx.).

Calculate the monthly interest rate:

To arrive at the monthly interest rate, add 1 to the monthly interest rate obtained in the previous step. For the example above, the monthly interest rate would be 1 + 0.0067 = 1.0067

Determine the loan tenure in months:

If the loan repayment tenure is in years, multiply it by 12 to convert it into months. For example, if the loan tenure is 20 years, the loan tenure in months would be 20x12 = 240 months

Calculate the EMI using the formula:

The formula to calculate the EMI is:

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


  • EMI is the Equated Monthly Instalment

  • P is the loan amount

  • R is the monthly interest rate

  • N is the loan tenure in months

The formula is purely mathematical. In general, lenders will use slight variations in the formula or consider additional factors such as a processing fee or prepayment charges. To get more accurate results, it is advisable to use an online EMI calculator provided by banks or financial institutions as they consider all relevant factors and provide more precise results. Using an online Home Loan EMI Calculator can save you the effort of doing the calculations manually.

How to Use a Home Loan EMI Calculator?

  • You can find out how much EMI you’ll need to pay on your Home Loan by clicking here

  • Enter your loan amount, interest rate and tenure

  • Use the slider to adjust the details

  • Once the details are in, the results will be displayed instantly by the Home Loan EMI Calculator.

How to Calculate Home Loan EMI on iMobile Pay?

To calculate Home Loan EMI on iMobile Pay follow the below process:

  1. Open the app

  2. Go to the three parallel lines on the left for ‘Menu’

  3. You will see ‘Calculator’

  4. Scroll to ‘Home Loan’ and select

  5. Scroll the slider for amount, interest and the tenure.

EMI will be calculated alongside. From there, you can apply instantly by clicking on ‘Apply Now’.

If you’re looking to calculate your EMI elsewhere, follow these simple steps:

Step 1: Visit the website or mobile app of your preferred financial partner and you’ll find a section for Home Loan EMI calculator.

Step 2: Enter the loan amount you wish to borrow. For example, if you are planning to take a loan of Rs. 50,00,000 enter this amount.

Step 3: Enter the tenure in years. For instance, if you plan to repay the loan over 20 years, enter '20' in the respective field.

Step 4: Enter the applicable interest rate. It is essential to use an accurate interest rate to get precise results.

Step 5: After entering the necessary details, click on the ‘Calculate’ or ‘Calculate EMI’ button.

You will get the answer.

Buying a new home or any other property is quite a task and requires careful financial budgeting and planning. ICICI Bank Home Loans make this process easier and more convenient for people looking to finance such aspirations. With an extensive range of loan amounts, low EMIs and tenures that can go beyond 30 years, we curate our Home Loan offerings to enhance each borrower’s eligibility.


Calculating your Home Loan EMI will help you manage your finances better and plan your budget more effectively. Many aspiring homeowners use EMI calculators in India to get accurate results and make informed decisions about their loans. Only by understanding your EMIs will you be able to manage them better, ensure a smooth repayment journey and own your new home with confidence. If you’re a first-time buyer, use this guide to consider some important points before making a decision.

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