How does the Money View Home Loan EMI Calculator Work?
Loans are repaid through EMI or Equated Monthly Installment which is a
set amount determined by the principal amount that is borrowed, the
interest rate charged, as well as the repayment tenure chosen. The
amount can be fixed or variable and will have to be paid by the borrower
to the lender each month.
We understand that calculating the EMI amount might be confusing which
is why the Money View Home Loan EMI calculator is designed to be
extremely simple. All you will need to do is follow the steps given
below 
Our personal loan interest rate calculator is tailored to be extremely
user friendly. Follow the steps below to calculate your monthly EMI
online and plan your finances effectively.

Enter the loan amount borrowed by using the slider to adjust

Enter the rate of interest that is imposed which can be adjusted by
using the slider

Finally, enter the repayment period that is chosen in either years
or months
That’s it! The EMI amount along with the repayment schedule will be
displayed.
If quick and easy EMI calculation is what you’re looking for then the
Money View EMI calculator is perfect. You will no longer have to worry
about miscalculating the EMI amount or worry about the correct formula
to use.
Home Loan EMI Calculation Formula
The formula for calculating EMI is as follows:
P x R x (1+R)^{N} / [(1+R)^^{N}1]
Where P stands for the principal amount that is borrowed
R represents the rate of interest imposed
N is the tenure in number of months
For example, if Rs. 50,00,000 is the amount borrowed (P), 10% is the
rate of interest imposed (R), and the 120 months is the tenure (n), the
EMI to be paid using the above formula will be:
50,00,000 x 0.00833 x (1+0.00833)^120 / [(1+0.00833)^1201] = Rs. 66,075
The rate of interest (R) is calculated monthly i.e. it is calculated as
(Annual Rate of interest/12/100) in this case (10/12/100 = 0.00833)
Home Loan Amortization Schedule
You may have come across the term ‘Amortization’ and wondered what it
meant. Amortization is essentially a way to pay off the loan in equal
installments every month and includes varying amounts of interest and
principal payments over the course of the loan.
For eg. in the case mentioned above, for a principal amount of Rs.50,000
with interest rate and repayment tenure being 10% and 10 years
respectively, the EMI amount based on the formula is Rs. 7,92,904 per
year or Rs. 66,075 per month. This EMI amount over time results in a
reduced principal and interest amount being paid every year until the
loan is fully repaid. The table below illustrates the amortization
schedule of this loan in detail.
1

₹50,00,000 
₹4,86,195 
₹3,06,709 
₹46,93,291 
2

₹46,93,291 
₹4,54,079 
₹3,38,826 
₹43,54,465 
3

₹43,54,465 
₹4,18,599 
₹3,74,305 
₹39,80,160 
4

₹39,80,160 
₹3,79,405 
₹4,13,500 
₹35,66,660 
5

₹35,66,660 
₹3,36,106 
₹4,56,799 
₹31,09,862 
6

₹31,09,862 
₹2,88,273 
₹5,04,631 
₹26,05,230 
7

₹26,05,230 
₹2,35,432 
₹5,57,473 
₹20,47,757 
8

₹20,47,757 
₹1,77,057 
₹6,15,848 
₹14,31,910 
9

₹14,31,910 
₹1,12,570 
₹6,80,335 
₹7,51,575 
10

₹7,51,575 
₹41,330 
₹7,51,575 
₹0 
Factors Affecting Home Loan Interest Rates
There are multiple factors that have an impact on the interest rate and
subsequently the home loan EMI amount to be paid. Some of the important
factors include 
Your credit score is a numerical representation of your
creditworthiness. The higher the score, the better are your chances of
availing of a loan as a high score indicates better repayment ability

Location and Value of the House
Houses that are in newer or upcoming areas are considered to be more
valuable or those that have amenities close by. Loans for such homes can
generally be availed at a lower interest rate
The Marginal Cost of Funds based Lending Rate is the minimum that a bank
or financial institution can lend at. This is decided annually and
depends on various factors such as operating cost, the marginal cost of
funds, etc. The interest rate imposed will increase or decrease based on
variations in the MCLR rate

Loan to Value or LTV Ratio
This is essentially the percentage of the property value that the loan
can finance. The higher the loan amount availed, the higher is the rate
of interest as the risk is greater for the lender

Employment Status of Applicant
Salaried employees or those with a steady stream of income can generally
avail of loans at a relatively lower rate of interest as the risk is
much lower for the lender as compared to applicants who are
selfemployed
In addition to all of the above factors, the repayment term can
determine the rate of interest imposed. Generally, a shorter repayment
term leads to a lower rate of interest and vice versa