Mortgage Calculator
Mortgage Calculator
Use our mortgage calculator to estimate your monthly payments. Simply enter your loan amount, interest rate, and loan term.
Introduction
The Mortgage Calculator is a general-purpose tool for estimating monthly payments on any property-backed loan — including Loan Against Property (LAP), plot loans, or mortgage refinancing — not limited to standard home purchase loans. If you're borrowing against an existing property or considering a mortgage for purposes other than buying a home, this calculator gives you a fast repayment estimate.
How to Use
Enter the following:
- Loan Amount: The mortgage or Loan Against Property amount you need.
- Annual Interest Rate (%): The rate quoted by your bank or NBFC (LAP rates are often slightly higher than standard home loan rates).
- Loan Term (Years): Repayment tenure, commonly shorter for LAP (10-15 years) than for home purchase loans.
Click "Calculate Mortgage" for your estimated monthly payment.
Formula / Methodology
EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]
Where P = Loan Amount, r = monthly interest rate, n = tenure in months.
Worked Example
For a Loan Against Property of ₹25,00,000 at 9.5% over 12 years:
Monthly rate = 9.5/12/100 = 0.007917, n = 144
EMI ≈ ₹27,832 per month
Note the higher rate and shorter tenure compared to a standard home loan — typical for LAP products, which carry more risk-based pricing for lenders.
Practical Uses
- Estimating EMI for Loan Against Property, often used for business funding or large expenses
- Evaluating mortgage refinancing options when switching lenders for a better rate
- Planning for commercial property or plot loan repayments, which often follow different terms than residential home loans
- Comparing LAP offers across NBFCs and banks, since rates vary more widely than standard home loans
FAQ
Q1: How is Loan Against Property different from a home loan?
LAP uses an existing property as collateral for funds that can be used for any purpose, while a home loan is specifically for purchasing or constructing a property, generally at a lower interest rate.
Q2: Why are LAP interest rates usually higher than home loan rates?
Lenders view LAP as slightly higher risk since funds aren't tied to the property's purchase, and repayment tenures are often shorter, both of which typically push rates up.
Q3: Can I use this calculator for commercial property loans too?
Yes, the EMI formula works the same way regardless of whether the property is residential or commercial — just enter the relevant loan amount, rate, and tenure.