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With Calculator.ai home loan calculator, you can easily calculate your house loan EMI. The  EMI calculator for a home loan can help you make an informed decision about purchasing a new home. The EMI calculator can help you arrange your finances to service your home loan. HDFC Bank provides house loans with EMIs beginning at ₹783 per lac and interest rates starting at 8.70%* p.a., including flexible repayment options and top-up loans. With a low-interest rate and a long repayment period, HDFC Bank ensures you receive a pleasant home loan EMI. Our low EMIs make HDFC Bank Home Loan easier on your budget.

Home Loan Calculator 

This digital tool calculates the monthly repayments (EMIs) for a specified home loan amount, interest rate, and duration. It’s handy for understanding your financial obligations when taking out a home loan.

Home Loan

A home loan or mortgage is borrowed from a bank or financial institution to buy a house. The house is secured for the loan, and the borrower repays the loan in instalments over a set period.

Types of Home Loans:

  1. Fixed-Rate Loans: The interest rate doesn’t change over the loan period. Ideal for those who prefer predictable monthly payments.
  2. Adjustable-Rate Loans: The interest rate can fluctuate based on market trends. Suitable for those who can manage changing monthly payments.
  3. FHA Loans: Backed by the Federal Housing Administration, these loans are designed for borrowers with low to moderate income. They often require smaller down payments and lower credit scores than conventional loans.
  4. VA Loans: These loans are for veterans and are backed by the Department of Veterans Affairs. They often require no down payment or mortgage insurance.

The Equated Monthly Installment (EMI) on loan is calculated using the following formula:

P x R x (1+R)^N / [(1+R)^N-1] 


P is the principal amount (the amount of the loan),

R is the monthly interest rate (annual interest rate divided by 12), and

N is the number of instalments (loan tenure in months).

EMI Calculation for Home Purchase 

Calculating the Equated Monthly Installment (EMI) for a home loan can significantly aid in planning your home purchase in several ways:

  1. Budget Planning: Knowing your EMI helps you understand how much of your monthly income would go towards the loan repayment, allowing you to plan your budget effectively.
  2. Loan Affordability: EMI calculation can help you assess the loan's affordability. If the EMI is too high, it might indicate looking for homes in a lower price range or extending the loan tenure.
  3. Loan Comparison: You can use the EMI amount to compare different loan offers. A lower EMI might suggest a more affordable loan option.
  4. Financial Discipline: Regular EMI payments can instil financial discipline, as you must ensure that the EMI amount is available in your account monthly.
  5. Repayment Strategy: By understanding how much of your EMI goes towards principal repayment and how much towards interest, you can plan strategies to reduce your interest burden.