EMI Calculation for Home Loan, Car Loan & Personal Loan in India 2021.

Hello Readers, We understand that people everywhere are searching for a home to call their own. We want to make this search as joyful as finally finding the perfect home.

Because we understand that finding a home is much more than an online search!, but it’s also important keep in mind some important aspects. When you buying home with home loan from any financial institute.

If you’re thinking about to buy Home, or planning to buy home with home loan. Before taking any loan from any finance institute, it is good habit to check your monthly expense amount and helps make an informed decision, about the outflow towards the cash every month.

Download Excel sheet for EMI Calculation

We are given link below to download excel file for Monthly EMI calculation.

Just enter loan amount, Interest rate, tenure of loan,

The Result section will show you Monthly EMI amount,

Total Interest payable amout,

principle Amount

Basic Formula Understanding

Total payment = interest Amount + Principle Amount.

In row 34 we have provided detail payment year by year about principle Amount, Interest amount, Total payment, principle Outstanding, Cumulative Interest, Cumulative Principle, Prepayment.

From Cell A69, Given here Loan repayment Schedule, Month on Month. And column “H”, Yellow highlighted Column Name (Prepayment if any).

If you paid any extra Prepayment Amount, then enter as per after number of EMI done, this will calculate, amount on your principle amount.

The Miracle of the Prepayment is, this payment will calculate on principle amount. So when you pay any prepayment after paying you 1st EMI, This prepayment will calculate in principle amount and it’s reduce principle amount as well as loan tenure.

For Example: EMI Calculation for Home Loan.

If you have Home loan 20,00,000/- (Twenty lakh rupees) with interest of 7% per annum, for 20 years tenure.

If you enter this details in excel as we provided for download. The every Monthly EMI will come as 15,506.

This need to pay for 240 months (means 20 years),

Total interest will payable till the end of loan tenure is 17,21,435/- (Seventeen lakh, twenty-one thousand, four hundred thirty five rupees).

Around 86% of principle amount, this is only interest we going to pay only. The total amount is Principle + Interest = 20,00,000+17,21,435.

= 37,21,435.

But if you prepay some amount in every month 5,000/- extra, then need to pay only for 145 Months means only (12 years) will take to complete your loan burden.

See the difference for this 12 years we need to pay 9.73,735 rupees only as interest which is 49% for 20,00,000/- loan amount.

What Our recommendation.  

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Our recommendation is as much as possible amount have  to pay, if we take any loan, generally, we will get amount increasingly, if a salary person Salary will increase, year on year, some times we get bonus amount, sometime incentive amount, and any if we have money then try to pay loan amount as much as possible, So the reduce pay loan amount interest.

Hope you learn something new here, if so then keep visiting bonsmartway.com

Calculate EMI of Loan
EMI Calculator
Loan Amount
Repayment in months
Interest Rate
EMI
Interest payable
Total payable

1 Comment
  1. Great explanation 👌

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