Buying a flat or home is a dream for many people. When you buy a home with the EMI option, it's really important to figure out how much you'll be paying each month. People are investing their hard-earned money into buying a house and EMI is a common way to do it.

## What is EMI?

The full form of the EMI is 'equated monthly installment'. Almost all banks provide loans on an interest basis. If you buy a house/flat on an EMI basis, then the bank will pay the entire amount to the seller on your behalf. then, you'll need to repay the total amount, along with some extra as interest, to the bank every month. Your EMI amount depends on the amount you borrowed (the principal), the bank's interest rate, and how many months you'll take to repay the loan. This is the whole basic concept of EMI.

### Home loan EMI formula

**P** = Principal loan amount

**r** = Monthly interest rate (Annual interest rate / 12 / 100)

**n** = Loan tenure in months

**EMI = P * r * (1 + r)^n / ((1 + r)^n - 1)**

### Here is the basic example of a calculation

P = 10000

r = 0.05 (Monthly interest rate for 5% annual interest)

n = 12

**EMI = 10000 * 0.05 * (1 + 0.05)^12 / ((1 + 0.05)^12 - 1)**
### What are the benefits of a Home Loan EMI calculator?

See calculating the EMI is not very complex. Simply using a simple formula anyone can calculate the EMI. But if you are using the EMI calculator, then the chances of error are very low. Because we already set the formula for you. Just put the correct values and with one click you can calculate it.

## What precautions should I take before using the home loan EMI calculator?

See based on your inputs calculation is very easy but different countries have their tax system. So counting the exact figure is not possible. You just calculate the lumpsum calculation. Make sure your provided value should be correct like principal amount, interest rates, etc.

## How to use calculatoro.com calculator?

Using the calculatoro.com calculator is very easy. On the above form first fill in the Loan amount then put the annual percentage, and lastly put in the loan term(number of installments) then click the calculate button you can get the correct result.