Home Loan EMI Calculator

What your home loan EMI pays for

Your EMI is the same amount every month. It pays the interest for that month on the balance you still owe, and the rest reduces the loan. Early EMIs are mostly interest. In the example below, ₹35,416.67 of the first ₹43,391.16 EMI is interest, and only ₹7,974.49 reduces the loan.

To use the calculator, enter the loan amount, or switch to the property price and your down payment, then the rate and tenure. Open Prepayments to add extra payments, or Floating rate change to see what a new rate does to your EMI and end date.

How the EMI is calculated

Banks and housing finance companies use the standard EMI formula:

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P is the loan amount. r is the monthly rate, which is the yearly rate ÷ 12 ÷ 100. n is the number of monthly EMIs.

Worked example: a loan of ₹50 L at 8.5% a year for 20 years. The monthly rate is 8.5 ÷ 12 ÷ 100 and n is 240. The EMI is ₹43,391.16. Over 20 years you pay ₹1,04,13,879.44 in all, of which ₹54,13,879.44 is interest. The interest is more than the loan itself.

Down payment and the RBI loan-to-value limit

The RBI limits how much of a home’s value a bank or housing finance company can lend. This is the loan-to-value (LTV) limit. For a property worth up to ₹30 L, the loan can be up to 90% of the value. Above ₹30 L and up to ₹75 L, it can be up to 80%. Above ₹75 L, it can be up to 75%.

Example: for a ₹60 L flat the limit is 80%, so the loan can be at most ₹48 L. Your down payment must be at least ₹12,00,000.00.

Stamp duty and registration charges are not counted in the price for this limit, so budget for them separately from your down payment.

How prepayment saves interest

Interest is charged on the balance you still owe. When you prepay, the balance falls at once, so every later month carries less interest.

Example: on the same ₹50 L loan, you pay ₹5 L once with the 13th EMI in November 2027. If you keep the EMI the same, you save ₹15,91,161.93 in interest and the loan ends 4 years early. If you keep the tenure and take a lower EMI instead, you save ₹5,06,765.16.

Banks and housing finance companies cannot charge a prepayment or foreclosure penalty on floating-rate home loans taken by individuals for non-business purposes. Fixed-rate loans may carry a charge, so check your loan terms. Before you prepay, keep an emergency fund aside.

Floating rates and repo rate changes

Most floating-rate home loans are linked to an external benchmark such as the RBI repo rate. When the benchmark moves, your rate moves with it.

When the rate rises, your lender may raise the EMI, extend the tenure, or both. You can usually ask which, so check with your lender. If a longer tenure would go past the allowed limit (this calculator uses 30 years), the EMI has to go up. When the rate is cut and you keep the EMI, the loan ends sooner. Use the Floating rate change panel to test a rise or a cut.

Tax benefits on a home loan

Under the old tax regime, for a home you live in, you can deduct two things each tax year (April–March). Interest paid, up to ₹2,00,000 a year, under Section 22 (earlier 24(b)). Principal repaid, including prepayments, up to ₹1,50,000 a year under Section 123 (earlier 80C). The ₹1,50,000 limit is shared with PPF, ELSS, life insurance and other investments.

The section numbers changed because the Income-tax Act, 2025 applies from 1 April 2026.

Example for tax year 2027-28 on the ₹50 L loan: you pay ₹4,17,607.84 in interest, but only ₹2,00,000 counts. With principal of ₹1,03,086.08 and a 30% slab, the estimated tax saved is ₹94,562.86, including 4% cess.

The new tax regime gives no deduction for a home you live in. The tax card on this page is an estimate for information only, not tax advice. Check with a tax adviser before you file.

Before you sign

• Compare the effective annual rate, which includes the processing fee and GST, not only the headline rate.
• Check whether a home loan insurance premium has been added to the loan amount.
• Ask whether a rate change will move your EMI or your tenure.
• Keep your total EMIs to a share of take-home pay you can manage even in a difficult month.
• Read the sanction letter for every charge before you sign.

Results are estimates for planning; your lender’s sanction letter has the final figures.