A Deep Dive Into The Different Parameters of A Home Loan Calculator

Home Loan
Home Loan

Taking a loan to buy a house is a common practice. Millions of people are applying for Home Loans every year. It eradicates the financial constrain while purchasing the place of your choice. When discussing Home Loans, one of the most important factors is EMIs. To manage your finances so that it does not become a burden on your earnings. Home loan EMI should be carefully looked into, as it affects your monthly expenditure and lifestyle. A high EMI can be unaffordable and, eventually, may drain you down.

This is where home loan calculators can help you. All you need is the loan amount you want to apply for, the tenure, and the housing loan rates offered by financial institutions. Punch in these figures, or tweak them, till the time you get the desired EMI amount, which you can easily pay each month

What Is A Home Loan EMI Calculator?

When you apply for a home loan, you must consider the down payment you would make. The higher your down payment, the lower your home loan EMI will be, as the loan amount reduces considerably.

The Home Loan amount you assess should be repaid to the bank as EMIs (equated monthly instalments). The EMIs include the repayment of the principal amount and the interest amount (based on the interest rate offered by the financial institution)

You can decide the tenure of the home loan, for 15, 20, 25, or 30 years, as per your income and repayment capacity.

The calculator assesses all these parameters and gives you the exact EMI you would need to pay each month for the chosen number of years. It has an inbuilt formula, and this tool is free of cost. You can use various permutations and combinations on this tool to get the desired EMI that you can quickly pay.

Why Use the Home Loan Calculator?

First of all, it’s free, simple, convenient, and accurate, and it helps you identify the loan amount and repayment schedule according to your monthly budget.

Parameters Of A Home Loan Calculator

A Home loan calculator has 3 parameters:

Loan Amount 

This is the amount that you need to borrow from the financial institution. For example, you need to purchase a house for Rs 60 lakhs. You have the contingency to make a down payment of Rs 20 lakhs. In this case, you might opt for a Home Loan Your home loan amount is Rs 40 lakhs in this case.

Rate of Interest 

Various financial institutions offer different housing loan rates. Several of them offer attractive and lucrative rates based on your credit score, repayment capacity, income, and other factors.

Loan Tenure

This can range between 10 – 30 years, depending on the home loan amount you need and the EMI you can afford

When you punch in all three figures, you get the following outcome:

  • EMI – The monthly amount that you need to pay as EMI
  • The Amortisation Schedule – It includes the breakup of the principal and interest amount that you pay through your EMIs, and how it is paid out each month through your EMIs, till the tenure gets over. It also includes the EMI instalment number and amount

Features of a Home Loan Calculator

Here are some of the top features of using a home loan calculator:

Free, Convenient, and Accurate Tool

You can use the housing loan calculator anywhere, anytime, without paying anything for it. This dynamic tool allows you to change figures and gives fast and accurate results.

Comparative Study

Using a calculator helps you assess the best offer made by different lenders and can help you settle for the best one.

Customised Repayment Schedule

A calculator helps you assess monthly EMIs, interest rates, and loan tenure, which can be customised according to your requirements and eligibility.

Get A Closer Look At Your Home Loan EMI

Housing loan calculators help you get the EMI amounts you must pay until your tenure ends. You can also assess different amounts using different interest rates, which helps you choose the right lender.

Using this tool, you can assess your home loan expense and match it with your monthly income, thus making it easier to plan your budget.


Technology has revolutionised the financial industry too. Tools like home loan calculators help you sort out complex mathematical calculations in seconds. Affordable housing is in high demand; thus, home loan calculators have become the need of the hour. Whenever you are planning to apply for a Home Loan, use this fantastic tool to manage your finances.