How to Calculate EMI on SBI Home Loan Calculator


A home loan is the most popular long term financing option available by people to buy or construct their own house. In the recent past, the effect of Pradhan Mantri Awas Yojana and the Credit Linked Subsidy Scheme has resulted in an increased number of home loans being availed. The country’s largest bank State Bank of India has been a key player in implementing the scheme and making it accessible to millions throughout the country. 

The home loan is a long term commitment and involves a huge amount of money. That is why it becomes imperative that you do a proper assessment and planning of your financials along with setting up a limit or budget on the cost of the home you want to buy or the amount of EMI you can afford or both. 

If you commit a mistake in estimating the right budget for yourself or the EMI which you can afford, then your home loan can take you deep into a debt tunnel and destroy your creditworthiness. Even such a situation may arise that due to your failure of paying the EMIs, the bank could decide to seize your house and use it to recover the balance amount. 

One of the most important aspects of planning a home loan is knowing about your probable EMI. The best way to calculate EMI is using the SBI Home Loan Calculator. Through the SBI Home Loan Calculator, you can get the benefit of: 

  1. Being able to choose the right tenure for your loan so that the EMIs are within your budget and easily manageable. 
  2. It eliminates manual calculation and provides accurate and quick results, thereby saving time and effort. 
  3. It helps you know the right loan amount so that the EMIs which you have to pay is within your capacity. 
  4. You can use the calculator on any device, whether it is a tablet, mobile or computer. 

The working of SBI Home Loan Calculator

The formula used by the SBI Home Loan Calculator is: 

EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)].

P = Principal or Loan Amount

R = Rate of interest

N = Tenure of the loan in months. 

SBI Home Loan Calculator in today’s time is available not only on the website of SBI but also on other loan aggregator’s websites as well. All these calculators are the same and show the accurate calculation of EMI along with an amortization schedule to help you understand and assess better. 

If you opt to do the manual calculation of your home loan EMI, then that process would be time-consuming, to say the least. The manual calculation means breaking down a complex mathematical formula and in case you are not the person who likes numbers, this calculation could show you stars in the day. Besides, there are high chances that even after your effort of solving the formula, the result could be inaccurate. 

If the result you calculated is accurate, then you would then have to solve the whole problem again. Also, the only way to know whether your answer from the manual calculation is right or wrong is to use the SBI Home Loan Calculator. Thus, isn’t it sensible to use the calculator only in the first place and save your energy for something more fun? 

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