How is Home Loan EMI calculation manually?
It is:
- EMI = [P x R x (1+R)N ]/[(1+R)N-1]
- P is the principal or loan amount.
- R is the monthly home loan interest rate.
- N is the number of EMIs or the tenor in months.
- EMI = [P x R x (1+R)N ]/[(1+R)N-1]
- (1+R)N = (1+.008331250) 240 = 7.322.
How does EMI gets calculated for home loan?
The calculation of your EMI depends on three factors- principal outstanding, tenure of the loan, and the interest rate. If your outstanding is higher, your EMI will also be higher. However, if you opt for higher tenure your EMI will go down provided the interest rate and loan amount remains the same.
What is the formula for EMI in Excel?
Calculating EMI has a Simple Formula, Which is As Follows: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]. Here, P is the original loan amount or principal, R is the rate of interest that is applicable per annum and N is the number of monthly installments/ loan tenure.
How is principal and EMI calculated?
How To Calculate Principal Amount From EMI Using Excel Sheet
- To get the principal component in a particular month type: =PPMT(I,x,n,-p)
- To get the interest component in a particular month: =IPMT(I,x,n,-p)
- Also, you can calculate your EMI by typing: =PMT (I,n,-p)
How to calculate home loan EMI in India?
We use the excel formula PMT to calculate home loan EMI. Monthly EMI = PMT (Monthly Interest Rate, Tenure in Months, Loan Amount) Using the following values in the PMT formula in excel: Monthly Interest Rate = 8%/12 = 0.666% We get, PMT (0.006667, 300, 5000000) = Rs 38,591. That is, the monthly EMI is Rs 38,591 per month (in EMI).
What is an EMI calculator and how to use it?
An EMI calculator is useful in planning your cash flows much in advance, so that you make your home loan payments with ease whenever you avail a home loan. In other words, an EMI calculator is a useful tool for your financial planning and loan servicing needs. EMI calculators are very simple and easy to use.
Who decides the interest rate in an EMI loan?
But interest rate is decided by the banks & HFCs based on rates and policies set by RBI. As a borrower, you should consider the two extreme possibilities of increase and decrease in the rate of interest and calculate your EMI under these two conditions.
What are the factors affecting your home loan EMI?
Factors affecting your home loan EMI are: Loan Amount: Higher the amount borrowed, the higher will be your home loan EMI, provided the tenure and the interest rate remain fixed. Interest Rate: Higher home loan rate leads to higher home loan EMI as well as the total interest cost.