Use this free Mortgage Loan Calculator to estimate your monthly loan repayments for buying or refinancing a home. Just enter your loan amount, interest rate, and tenure to get quick EMI results along with total payment and interest breakdown.
Mortgage Loan Calculator
Understanding Mortgage Loans and How They Work
A mortgage loan helps you buy or refinance a property by borrowing from a bank or financial institution. The property itself acts as collateral, and the repayment happens through fixed monthly instalments known as Equated Monthly Instalments (EMI’s). Mortgage loans are popular across worldwide because they make home ownership achievable without paying the entire money in advance.
Types of Mortgage Loans
- Fixed-Rate Mortgage: Here the interest rate remains constant throughout the loan term, providing predictable EMIs.
- Floating-Rate Mortgage: Here the interest rate fluctuates based on market rates (like repo or LIBOR), affecting your monthly payment.
- Hybrid Mortgage: This combines both — it starts as fixed for a few years, later then it switches to floating.
How Mortgage EMIs Are Calculated
The EMI is calculated using the formula:
EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]
Where:
P = Loan Principal r = Monthly Interest Rate n = Number of Months
Example: For a ₹50,00,000 (or $60,000) loan at 8% annual interest for 20 years, your EMI is approximately ₹41,822 ($503) per month.
Smart Tips for Choosing the Right Mortgage
- Compare interest rates across banks before applying.
- Check processing fees and hidden charges.
- Choose shorter tenure if you can afford higher EMIs – it saves interest in the long run.
- Review prepayment options to reduce your loan burden early.