# How does a PNB Home Loan EMI Calculator Work? ## Introduction

A home loan is a significant long-term financial commitment. Hence borrowers consider their repayment capacity and tenure before applying for a loan.

PNB Housing Home Loan EMI calculator is used to estimate the monthly expense going toward home loan payments. It helps finalize the amount of the loan, decide a tenure, and better plan the finances.

You can enter various loan amounts, interest rates, and tenure combinations to find the right loan that suits your budget. Let’s take a deeper look at the workings of the PNB Housing Loan EMI calculator.

## What is a PNB Home Loan EMI Calculator?

All home loan borrowers need to pay the lender Equated Monthly Installments (EMI) every month till full repayment of the loan. The EMI consists of a portion of the principal amount and the interest on the outstanding loan balance.

Calculating the EMI by formula can be a cumbersome process. That’s why there are online tools to help you make the calculation. They are called Home Loan EMI calculators.

The online calculator is easy and quick and helps in error-free monthly EMI calculations.

## How does the PNB Home Loan EMI Calculator Function?

The PNB Housing Loan EMI calculator takes into account three factors while calculating your EMI:

• the loan amount
• the interest rate
• the tenure of repayment

The tool then uses a mathematical formula to calculate the monthly EMI based on your inputs.

The formula goes as follows:

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

where,

• P= Principal amount of loan taken
• R= Rate of interest (monthly)
• n= Total duration of repayment (in months)

Let’s understand this with the help of an example. Suppose you’ve taken a PNB Housing Loan of 25 lakhs to be repaid over 20 years. Let’s say that the interest rate on the loan is 7.99%.

So here,

• P= 25,00,000
• R= 0.0799/12 = 0.0066
• n= 20 × 12 = 240 months

Now, putting the figures in the formula, we get,

EMI = [25,00,000 × 0.0066 × (1 + 0.0066)^240]/ [(1 + 0.0066)^240-1]

= Rs 20,895

The PNB Housing Loan EMI calculator will give you the same result. Further, the calculator will also show you the total interest payable and repayment amount.

You can also view the full amortization schedule for the entire tenure if you scroll below on the page.

### Steps To Use the PNB Housing Loan EMI Calculator

With a PNB Housing Loan EMI Calculator, you can relieve yourself of the lengthy and tiresome process of calculating EMI manually. You can instantly get the approximate value of your EMI by following a few simple steps:

• Visit the PNB Housing and click on the Home Loan EMI Calculator
• Enter your principal amount in the Loan Amount filed.
• Enter the annual rate of interest in the ROI field
• Enter the expected duration in the Tenure field
• The tool will instantly calculate your EMI and show you the result.

### Benefits of Using PNB Housing Loan EMI Calculator

#### Better Financial Planning

An EMI calculator will help you decide the right loan amount, depending on your affordability. It will also help you determine the most appropriate tenure that will not strain your pocket. You can try out different terms and pick the most suitable one.

#### Find the Interest Component

Along with the EMI figure, the PNB Housing loan calculator also shows you the overall interest payable on your loan. This will give you an estimate of your money that will go towards interest payment.

#### Get a PNB Home Loan Today!

If you’re looking for affordable home loans, PNB Housing could be your ideal destination. Check out the PNB home loan review to get an idea about their excellent services.