Home Loan EMI Calculator
Enter your home loan amount, interest rate and tenure to instantly see your monthly EMI, total interest, and a year-by-year repayment schedule.
What is a home loan EMI?
A home loan EMI (Equated Monthly Installment) is the fixed amount you repay to your lender every month until your housing loan is fully cleared. Each EMI is split into two parts: the interest charged on the outstanding balance and a portion that reduces the principal. In the early years most of your EMI goes toward interest; over time the principal share grows.
The home loan EMI formula
This calculator uses the same standard reducing-balance formula as our Loan EMI Calculator — the method banks apply to home loans:
EMI = P × r × (1 + r)^n ÷ [ (1 + r)^n − 1 ]
- P — home loan amount (principal)
- r — monthly interest rate = annual rate ÷ 12 ÷ 100
- n — number of monthly installments = tenure in years × 12
How to use this calculator
- Set the Loan Amount using the slider or by typing the exact figure.
- Enter the Interest Rate quoted by your bank (per annum).
- Choose the Tenure in years — home loans commonly run 15–30 years.
- Instantly view your monthly EMI, total interest, total payment and a year-by-year amortization schedule.
Fixed vs floating interest rates
Most home loans in India are on floating rates linked to an external benchmark (such as the repo rate), so your EMI or tenure can change when rates move. A fixed rate keeps your EMI constant but is usually a little higher. This calculator assumes the rate you enter stays constant for the full tenure.
How much home loan are you eligible for?
Before you settle on a loan amount, it helps to know how much a lender is likely to sanction. Three yardsticks decide most home loan applications:
- FOIR (Fixed Obligation to Income Ratio) — banks cap your total monthly EMIs, including this loan plus any existing ones, at roughly 40–50% of your net monthly income.
- Income multiple — as a rough guide, the sanctioned amount often lands around 5–6 times your gross annual income, adjusted for age and repayment capacity.
- Loan-to-Value (LTV) — lenders typically fund 75–90% of the property value, so you arrange the remaining 10–25% as a down payment.
Take a net take-home pay of ₹1,00,000 a month with no other EMIs. At a 50% FOIR, a lender may permit an EMI of about ₹50,000 — which, at 8.5% for 20 years, supports a loan of roughly ₹57–58 lakh. Add existing obligations and the eligible figure falls quickly, because those EMIs eat into the same 50% ceiling.
How tenure changes your EMI and total interest
Tenure is the single biggest lever on affordability. A longer tenure shrinks the monthly EMI but inflates the total interest, because the principal is repaid more slowly. The table below shows a ₹50,00,000 loan at 8.5% p.a. across common tenures:
| Tenure | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|
| 10 years | ₹61,993 | ₹24,39,141 | ₹74,39,141 |
| 15 years | ₹49,237 | ₹38,62,656 | ₹88,62,656 |
| 20 years | ₹43,391 | ₹54,13,879 | ₹1,04,13,879 |
| 25 years | ₹40,261 | ₹70,78,406 | ₹1,20,78,406 |
| 30 years | ₹38,446 | ₹88,40,443 | ₹1,38,40,443 |
Stretching from 20 to 30 years trims the EMI by under ₹5,000 a month, yet adds more than ₹34 lakh in interest over the life of the loan. As a rule, pick the shortest tenure whose EMI still sits comfortably within your budget.
Home loan tax benefits (old regime)
Under the old tax regime, a home loan can meaningfully lower your taxable income. The new regime does not allow the interest deduction on a self-occupied house, so weigh both routes first — our Income Tax Calculator compares them for FY 2026-27.
| Benefit | Section | Old-regime limit per year | What it covers |
|---|---|---|---|
| Interest paid | 24(b) | Up to ₹2,00,000 (self-occupied) | The interest portion of your EMIs |
| Principal repaid | 80C | Within the ₹1,50,000 limit | Principal, plus stamp duty and registration in the year of purchase |
| Extra interest (affordable housing) | 80EEA | Up to ₹1,50,000 | Only for loans sanctioned up to 31 March 2022 |
If you also pay rent while working in another city, you may be able to claim both a home loan deduction and HRA — estimate the rent portion with the HRA Exemption Calculator.
Fees and charges to budget for
The EMI is not your only cost. Plan for these one-time and recurring charges, which raise your effective cost of borrowing:
- Processing fee — typically around 0.25%–1% of the loan amount, sometimes capped at a fixed figure.
- Stamp duty and registration — a state-level charge on the property, commonly in the region of 5%–8% of the property value depending on the state.
- Legal, valuation and documentation charges — smaller fees for title checks and property valuation.
- Insurance — many borrowers add property or loan-protection cover alongside the loan.
Because most of these are paid upfront and sit outside the EMI, factor them in when comparing offers from banks and housing finance companies.
Prepayment: the fastest way to cut interest
Since interest is charged on the outstanding balance, any prepayment directly lowers every future interest charge. A few strategies stand out:
- Larger down payment — borrowing less directly lowers both your EMI and total interest.
- Compare lenders — even a 0.25%–0.5% lower rate saves lakhs over 20–30 years.
- Prepay early — floating-rate home loans to individuals usually carry no prepayment penalty, and prepayments made in the early years (when interest dominates the EMI) save the most. Our home loan prepayment strategy guide shows how to time them for maximum savings.
- Balance transfer — moving your outstanding balance to a lender offering a lower rate can meaningfully reduce your cost, though weigh the switching fees first.
One caveat: if your loan rate is low, investing a windfall may beat prepaying it. Compare the after-tax return you could realistically earn — for example with our SIP Calculator — against your loan rate before you decide.