🏠 Understanding Home Loan EMI Calculation
Let's break down the EMI calculation into simple, easy-to-understand steps!
The Magic Formula 🎯
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
P
Principal Loan Amount
r
Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
n
Total Number of Months (Years × 12)
EMI
Your Monthly Payment
Let's Calculate! 🧮
Example Scenario:
Loan Amount
₹30,00,000
Interest Rate
8.5% p.a.
Tenure
20 years
Step-by-Step:
- 1. Monthly Rate (r) = 8.5 ÷ 12 ÷ 100 = 0.00708
- 2. Total Months (n) = 20 years × 12 = 240 months
- 3. Put these values in the formula...
Pro Tips 💡
- ✨ Higher down payment = Lower EMI
- ✨ Shorter tenure = Less total interest
- ✨ Compare multiple lenders for best rates
Want to try different scenarios?
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