Home loans are secured loans for purchase of a ready house or under-construction residential property. It can also be used to buy land and construct a house on it. If you are planning to take a home loan for your dream home, make sure that you calculate your home loan EMI (equated monthly instalments) in advance.
Home Loan EMI Calculator
Download the Home Loan EMI Calculator in Excel for quickly calculating your monthly home loan instalment or EMI. All the formula has already been defined. You just need to enter your actual home loan amount, tenure and interest rate. This calculator will only work for loans that have a monthly repayment instalments.
How to use the home loan EMI calculator?
- Loan Amount – Enter your Personal Loan amount that you would like to borrow.
- Interest Rate – The Personal Loan Interest Rate offered by your bank. Make sure to add the % symbol after the value.
- Tenure/No. of Months – Select the tenure of your Personal loan and calculate your monthly EMI.
USING EXCEL TO CALCULATE EMI
You can easily calculate your home loan EMI or any other loan EMI using the Excel spreadsheet. In Excel, the function for calculating the EMI is called PMT. You need the following to calculate your home loan EMI: monthly rate of interest (rate), number of periods in months (nper) and the loan amount or present value (pv).
The formula for calculating your personal loan EMI in Excel is:
=PMT(rate,nper,pv)
Let’s take an example. Suppose you are taking a home loan of Rs 20 lakh at 10% interest per annum for 20 years. In such a case, divide the interest rate by 12 and multiply the number of years by 12. The equated quarterly instalment for the given figures will be =PMT(10%/12, 20*12, 2000000)