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What are The Smart Ways to Calculate EMI Easily?

It is always beneficial to determine the monthly instalment amount and the total interest payable for a home loan. This will help them plan their loan repayment and manage finances accordingly. Moreover, they can assess their budget and decide how much amount they can repay.

However, one should know how to calculate loan EMI to avail these benefits. There are various methods one can use for this purpose. This article will guide borrowers on how they can calculate the EMI amount easily.

How to calculate loan EMI in different ways?

Whether it is a home loan or a loan against property, one can use the following ways to calculate a loan EMI:

  • Manual calculation

One can easily calculate the loan EMI using this mathematical formula:

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

Here, P = principal amount that is borrowed 

R = monthly interest rate

N = loan tenor in months

R is calculated by dividing the annual rate of interest by (12×100).

Let’s assume the rate of interest is 7.2% p.a.

 Here, R = 7.2/ (12×100) = 0.006

The EMI calculation for a person availing loan of Rs.10, 00,000 at an interest rate of 7.2% for a tenor of 10 years (120 months) will be as follows:

EMI= 10, 00,000 x 0.006 x (1 + 0.006)120 / ((1 + 0.006)120 – 1) = Rs.11,714.

  • Rs.11,714 x 120 = Rs.14, 05,703 will be the total amount payable to the lender.
  • Rs.10, 00,000 is the principal loan amount.
  • Rs.4, 05,703 is the payable interest amount.

However, computing the loan EMI manually is time-consuming and can sometimes be full of errors. So, using the house loan calculator can be an innovative and hassle-free way to compute the exact EMI amount.

  • Using EMI calculator

Calculating the loan EMI via an online calculator is the easiest way to determine the monthly payable amount. One can use this tool to calculate home loan EMI, total interest payable, etc. The section below will explain how to calculate home loan EMI using an online calculator in easy steps:

  • At first, the borrower will have to visit the lender’s website and locate the home loan page
  • Then, they need to navigate the home loan EMI calculator
  • Next, the borrower needs to enter his loan amount, tenor and the home loan interest rate on the displayed box
  • Exact EMI will be calculated and displayed on the page 

So, borrowers can easily calculate the payable EMI amount, total outstanding, etc., by entering correct inputs on the home loan EMI calculator.  

  • Via excel sheet

Another easy way to calculate the loan EMI amount is by using an excel sheet. Borrowers can use the following formula while calculating their EMI on an excel sheet: PMT (RATE,NPER,PV,FV,TYPE) 


RATE implies the monthly interest rate on a home loan

NPER stands for the total number of monthly instalments

PV denotes the principal amount of the loan

FV indicates the remaining value after making the last payment

TYPE can be either 1 or 0 and depends on whether the amount of instalment is paid at the end of the month or the beginning. 

If the formula is entered correctly, borrowers can determine an error-free EMI amount within a few seconds. However, one must be careful while entering the formula manually, as a simple mistake can affect the calculation.


The EMI calculators are free and available on various lender sites. These lending institutions also offer pre-approved offers on products like LAP and others. Borrowers can check their pre-approved offers easily by entering their basic details such as names, contact numbers, etc.

So, computing loan EMI is no more a tedious job, thanks to loan EMI calculators. However, another calculator can help borrowers determine their eligibility for a loan. It is available for different products. 

For instance, home loan borrowers can use a home loan eligibility calculator to check if they are eligible for a loan. It will save their time and help in knowing proper eligibility parameters. This will enhance one’s chances of loan approval.

Uneeb Khan
Uneeb Khan
Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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