What is the calculator?
The home loan calculator helps you calculate the equated monthly instalments (EMIs) you have to pay the lender each month till the loan is fully paid. The EMI is based on your home loan amount, the tenure and interest rate. On a given home loan amount, interest rate and for a specific duration, the calculator will let you know how much EMI will be required to be paid.

How to use it
To arrive at the EMI, one has to input:

Loan amount - It has to be between Rs 50,000 and Rs 1 crore.
Tenure - The tenure has to be between 1 year and 30 years.
Interest rate - It has to be between 1 percent and 50 percent.

Interest rates may vary across lenders as different lenders may offer loans at different rates. For the interest rate, input the rate at which your lender is providing you the loan.

Use the slider to put in different home loan amount and tenure to arrive at the EMI at which you are comfortable with.

What it shows
The results will show three things -

a. The EMI - This amount is to be paid each month till the loan is fully paid.
b. The break-up - It shows the interest portion in each month's EMI. The rest is the principal being repaid each month.
c. The amortisation schedule - The amortisation schedule shows the break-up of the interest paid and principal repaid out of the EMI each month till the end of the tenure. The outstanding balance after paying each month's EMI is also shown in the amortisation schedule. This document can be downloaded as pdf format.

How the result arrived at
The formula used for arriving at the EMI is:

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

Here, P= Principal loan amount, R= Rate of interest, n= Number of monthly instalments.

An example:
Assuming, P= Rs 30 lakh, R= 9 percent per annum= 9/12= .75 per month, N= 180 months

EMI = ((300000*.75 /100*(1+.75 /100) ^180/((1+.75 /100)^180-1))) = Rs 30,428