How to Use an EMI Calculator for An Rs.1 crore Home Loan?


The Indian credit landscape has witnessed a portfolio enhancement in the home loan segment by 8 to 10% in FY 2022 (1). Purchasing a house involves high-end expenses. A home loan enables one to gather substantial funds at an affordable loan term to establish their dream without dipping into their future savings.

EMI Calculator

The thought of availing of a lump sum 1 crore home loan amount or any amount either less than or greater than the mentioned amount needs to be complemented by proper planning in order to materialize. Using a home loan EMI calculator will help conduct appropriate planning and know the tentative EMI forecast.

How to use an EMI calculator for an Rs. 1 crore home loan?

A home loan EMI calculator is an effective online tool that helps borrowers plan their finances and repay the loan amount effectively. Here are the steps to help you use a home loan calculator by feeding in the three variables.

Step 1: Visit the official website of the preferred lender and head to the home loan EMI calculator from the list of financial tools.

Step 2: Now enter your principal amount, loan tenor, and interest rate on the respective sliders.

Once done providing the necessary details, the home loan EMI calculator will show the home loan EMI, total payable interest rate, and total payable amount. Upon trying different combinations of loan tenor, interest rate, and loan amount, the home loan EMI calculator will instantly come up with different EMI amounts.

A home loan EMI calculator provides an accurate result and is based on the mathematical formula-

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

P stands for the principal amount
R denotes the rate of interest
N suggests loan tenor.

As borrowers alter the variables, this EMI calculator displays the results accordingly. For instance, an individual has derived Rs.1 crore home loan amount at an interest of 7%. Besides, he has opted for a loan tenor of 25 years; borrowers will have to pay-
Rs.70,678 as monthly installments, Rs.1,12,03,375 as total interest payable, and the total payable amount that the borrower will have to pay is Rs.2,12,03,375.

Benefits of using a home loan EMI calculator

An online home loan calculator proves to be an ideal financial tool, owing to the numerous benefits it passes to the borrowers.

  1. Error-free evaluation: Calculating EMI amount manually is tedious and prone to errors. However, with the help of an EMI calculator, individuals will receive error-free data in no time.
  2. Select the right home loan tenor: As borrowers calculate the EMI amount beforehand, it becomes easy to choose the suitable loan tenor. Borrowers can decide whether they can afford a higher EMI amount or not as per their convenience.
  3. Helps in loan management: When borrowers are left with adequate funds after paying the monthly installments, they can use it to make prepayments to clear a loan amount before its due date. In this regard, a customer can use a home loan EMI calculator to revisit their financials and compute the amount they can use to prepay loan principal.
  4. Compare loan offers: Different lending institutions have different offerings. With the assistance of a home loan EMI calculator, one can put different loan terms and compute EMI amount and total loan cost, helping them narrow down on the best deal and choose a credit option best suit their financial requirement.
  5. Repayment of the loan amount: This is perhaps the most prominent benefit of using a home loan EMI calculator. It provides borrowers with a faultless representation of monthly installments depending on the loan amount, interest rate, and repayment tenor.
  6. Choose loan amount: Getting a clear idea of monthly installments, borrowers arrive at a loan amount they can afford to repay within the loan tenor. Borrowers can vary the loan amount using the calculator and arrive at a feasible option.

Owing to the current interest rate on a home loan, which is at a historic low, and the availability of the home loan EMI calculator has made it effective and easy for borrowers to go for the credit option. Applying for a home loan at an affordable lending rate and computing the EMI amount beforehand secure the borrower’s financial future and make the borrowing cost-effective.

Moreover, adhering to the set of eligibility criteria for a home loan and keeping the required documents in order will help borrowers fetch Rs.1 crore home loan amounts easily.

Apart from reaping the benefits of the home loan EMI calculator, borrowers get to enjoy the exclusive pre-approved offers extended by several leading financial institutions. All These offers are available on financial products like home loans, property loans, etc. Pre-approved offers are offered to streamline the application procedure and reduce additional hassles of documentation. Willing borrowers can check the pre-approved offers by submitting their names and contact details.

In conclusion, although home loans provide immense financial support to those purchasing their dream house, they can also prove counterproductive in the long run and affect borrowers’ financial health if not planned well. Opting for any lump-sum credit advance like Rs.1 crore home loan amount needs systematic planning, which will keep the repayment momentum unaffected. A home loan EMI calculator helps determine loan eligibility and prepares a borrower to make timely repayment of the monthly installments.


Please enter your comment!
Please enter your name here