# How to Calculate the EMI for Your Home Loan?

by on January 2, 2007

in Finance

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What is the EMI I have to pay on a 20-year Rs. 20 lac housing loan at 9.5%? By how much does the EMI change if I opt for a 14-year housing loan at 9%? What is the toal interest amount I end up paying over the term of the loan? How is the EMI I pay split between the prinicpal and interest repayments?

If these are questions that have played tricks on your mind, the Indian Home Loan EMI Calculator is for you. It’s an Excel workbook I designed to test my understanding of finance (and Excel). The model works well and validates the figures given in popular finance magazines such as Outlook Money and Money Today.

Using this EMI calculator is quite simple. You will find 6-worksheets inside the workbook: one each for a loan term of 10, 12, 14, 16, 18, and 20 years. First select the appropriate worksheet. For example, for a 16-year loan tenure you should select the worksheet titled “16 Years.” On the top-left corner is a section titled Loan Parameters. You will have to key-in two figures:

1. Principal (or Loan Amount) – The amount of loan you wish to apply for
2. Rate of Interest – The interest figure quoted by the bank

Once you have entered these two values, you will instantly see the loan repayment schedule (with principal and interest components) alongwith summary figures such as Total Interest paid and Total Amount Paid Back.

At a beginner level, leave the other two parameters viz. Repayment Time and Compounding Factor at the default setting. By default, the workbook has repayment schedules worked out for a loan amount of Rs. 20 lac at 9% interest.

Let me know if you have any difficulties in using this workbook. Suggestions for improvements are most welcome.

Nupur July 9, 2007 at 10:38 AM

Hi, it would be great if you can factor in any lump sum payment in the middle. Lets say if i’ve taken loan of 50 lacs but after 1 yr i’m in position to pay back 10 lacs and so on as a lump sum amount, how will it affect the following EMI’s then.

Vinaya HS July 12, 2007 at 5:39 AM

Hi Nupur,

Let me see if I can build in the factors that you have mentioned. When I created this calculator it was only meant to give an idea of the EMIs involved.

Surinder Singh October 15, 2007 at 11:56 AM

Magesh March 16, 2008 at 9:56 AM

I got the following message “Unable to read file”.

Man April 21, 2008 at 9:56 PM

Hi, Even I have faced a similar problem of “Unable to read file” looks like the file dosent exist anymore.

Harshada February 6, 2009 at 8:28 AM

Hii,

JR February 23, 2009 at 3:57 PM

Vinaya,
This is one of the best site I have come across, you are really educating all of us, most of the time we just sign with looking at the document and specially with loan as with the bank and the agent will guide you.

I took a personal loan and I thought I will pay only the EMI told to me, but I was charged even a service tax on the interest part, I fought with the bank and came to know it is a common knowledge.

First please also include the service tax coponent with the Car and Personal loan, secondly on the home loan with what Nupur has suggested, I would go a way forward and include the foreclosure amount and the processing fee, so that one knows what he requires to open and close a home loan.

Thanks

JR

Anonymous June 26, 2009 at 2:17 PM

Stupid empty file.

Anonymous October 3, 2009 at 8:09 AM

Empty file. Waste of Time

Anil January 8, 2010 at 10:46 AM

Thanks,
Anil

ramesh August 28, 2010 at 4:21 PM

why it is empty.

srinivas July 25, 2011 at 10:18 AM

please send me how to calculate emi of home loan