Home Loan EMI Calculator

The formula for calculating Home Loan EMI is:

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

Where:

P is the principal loan amount

R is the rate of interest per month [i.e., annual interest rate/12 months]

N is the loan tenure in months

Here's an example to illustrate how this formula works:

Suppose you have taken a home loan of INR 50,00,000 at an interest rate of 9% per annum for a period of 20 years. You will be making the loan payments on a monthly basis.

In this case, the principal loan amount (P) is INR 50,00,000, the rate of interest (R) is 9/12 = 0.75% per month, and the loan tenure (N) is 20 years x 12 months = 240 months.

Plugging these values into the formula, we get:

EMI = [50,00,000 x 0.75 x (1+0.75)^240]/[(1+0.75)^240-1]

= INR 44,252.78

This means that you will need to pay an EMI of INR 44,252.78 each month for 240 months to repay the home loan.