Home Loan EMI Calculator
Enter the loan amount, interest rate and tenure to see your monthly EMI and the true cost of the loan.
Runs entirely in your browser — your numbers never leave this page.
How it works
Your EMI (equated monthly instalment) is the fixed amount you pay the bank every month. It is calculated so that the loan is fully repaid by the end of the tenure:
EMI = P × r × (1+r)n ÷ ((1+r)n − 1)
where P is the loan amount, r the monthly interest rate, and n the number of months.
- Early years are mostly interest: in the first few years, the bulk of your EMI services interest, not principal. Prepaying early therefore saves far more than prepaying late.
- Tenure vs EMI trade-off: a longer tenure lowers the EMI but raises total interest sharply — a 30-year loan can cost nearly double the principal in interest.
- Floating rates move with RBI repo-rate changes; the bank typically keeps your EMI fixed and extends the tenure instead.
- Tax benefit: interest up to Rs 2 lakh/year deductible under section 24(b), plus principal under 80C (old regime).
- Banks also charge processing fees (0.25–1%) and require property insurance — factor these into the true cost.
Frequently asked questions
How is home loan EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the monthly rate and n the months. A Rs 50 lakh loan at 9% for 20 years gives an EMI of about Rs 44,986.
Should I choose a longer or shorter tenure?
Shorter tenure means higher EMI but much less total interest. Longer tenure eases monthly cash flow but can nearly double the interest paid. Pick the shortest tenure whose EMI fits comfortably in your budget.
What is the difference between fixed and floating rates?
Fixed rates stay constant; floating rates move with RBI policy. Floating is usually 0.5–1% cheaper upfront but your EMI/tenure can change. Most Indian home loans today are floating.
Does prepaying my home loan save money?
Enormously, especially early — a Rs 5 lakh prepayment in year 3 of a 20-year loan can shave off years of tenure and lakhs in interest, because early EMIs are mostly interest.
Is there a penalty for prepaying?
No — RBI bars prepayment penalties on floating-rate home loans for individuals. Fixed-rate loans from HFCs may still carry a small charge; check your sanction letter.
What tax benefits do I get on a home loan?
Under the old regime: interest up to Rs 2 lakh/year under section 24(b) and principal up to Rs 1.5 lakh under 80C. The new regime offers no home-loan interest deduction for self-occupied property.
How much home loan am I eligible for?
Banks typically cap EMI at 40–50% of monthly income and lend up to 75–90% of the property value (LTV), depending on the loan size. A higher down payment means a smaller, cheaper loan.
Why is my first-year principal repayment so small?
Because interest is charged on the outstanding balance, which is largest at the start. As the balance shrinks, more of each EMI goes to principal — this is normal amortisation.
What extra costs come with a home loan?
Processing fee (0.25–1% of loan), stamp duty and registration on the property, home insurance (often mandatory), and legal/technical verification charges.
Can the bank change my EMI later?
With floating rates, yes — but banks usually keep the EMI unchanged and extend or shorten the tenure instead, unless you request an EMI reset.