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Home loan EMI calculator

Written and reviewed by Omm · Last reviewed · General information, not investment advice

Enter the loan amount, the interest rate your lender quotes and the tenure, and see the monthly EMI, the total interest you will pay and how the loan is repaid year by year. Then try an extra monthly payment or a one-time prepayment to see how much interest and time it saves.

Between 10000 and 1000000000

Interest rate is quoted as
%

Between 0 and 40

years

Between 1 and 30

Prepayment and fees
%

Between 0 and 10

Between 0 and 10000000

Between 0 and 1000000000

Between 1 and 360

Your EMI is ₹44,186 a month. Over the loan you pay ₹56,04,529 in interest, which is 112.09% of the amount you borrow.

Monthly EMI

₹44,186

Total interest

₹56,04,529

Total you pay (loan + interest + fee)

₹1,06,29,529

Interest as % of the loan

112.09%

Processing fee

₹25,000

Year 1Year 20
Balance leftInterest paid so far
Year-by-year breakdown
YearPrincipal paidInterest paidBalance left
1₹96,537₹4,33,689₹49,03,463
2₹1,05,331₹4,24,895₹47,98,132
3₹1,14,926₹4,15,300₹46,83,205
4₹1,25,396₹4,04,831₹45,57,810
5₹1,36,819₹3,93,408₹44,20,991
6₹1,49,282₹3,80,944₹42,71,709
7₹1,62,881₹3,67,345₹41,08,827
8₹1,77,719₹3,52,507₹39,31,108
9₹1,93,909₹3,36,318₹37,37,200
10₹2,11,573₹3,18,654₹35,25,627
11₹2,30,846₹2,99,380₹32,94,781
12₹2,51,875₹2,78,351₹30,42,905
13₹2,74,820₹2,55,406₹27,68,085
14₹2,99,855₹2,30,371₹24,68,230
15₹3,27,171₹2,03,056₹21,41,059
16₹3,56,975₹1,73,252₹17,84,085
17₹3,89,493₹1,40,733₹13,94,591
18₹4,24,975₹1,05,252₹9,69,616
19₹4,63,688₹66,538₹5,05,928
20₹5,05,928₹24,298₹0

How it works

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1) where P = loan amount, i = yearly rate ÷ 12, n = number of months. Each month: interest = balance × i; principal repaid = EMI − interest

Each month the interest is worked out on the balance still owed, at one-twelfth of the yearly rate. Whatever is left of the EMI after paying that interest reduces the loan. In the early years most of the EMI is interest; over time the share that repays the loan grows. This is called the reducing-balance method and it is how home loans in India are normally calculated.

The total interest is the EMI times the number of months, less the amount you borrowed. A long tenure lowers the EMI but raises the total interest a lot, because the balance stays high for longer.

Prepayment here keeps your EMI the same and shortens the loan. An extra amount paid every month goes straight to the balance, and a one-time lump sum is paid at the end of the month you choose. The earlier you prepay, the more interest you save, because the balance falls while it is still large.

Many home loans have a floating rate, which can change when the lender’s benchmark changes, and then the EMI or the tenure changes too. The calculator assumes one rate for the whole loan. The processing fee you enter is added to the total cost but not to the EMI. Tax deductions on home loan interest and principal are not included.

Example. A ₹50,00,000 loan at 8.75% for 20 years has an EMI of about ₹44,186. Over 240 months you pay about ₹56,04,529 in interest, +112.09% of the loan. Paying an extra ₹5,000 every month ends the loan about 4 years 5 months earlier and saves about ₹14,52,427 in interest.

Read the guide: How an EMI works: home, car and personal loans, flat vs reducing rate.

Frequently asked questions

How is a home loan EMI calculated?

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1), where P is the loan amount, i is the yearly interest rate divided by 12 and n is the number of months. The calculator shows this formula on the page and applies it for you.

Why is so much of my early EMI interest?

Interest is charged on the balance you still owe, and the balance is highest at the start. So the first EMIs are mostly interest and repay little of the loan. As the balance falls, the interest part shrinks and the principal part grows.

Is it better to prepay or to invest the money?

Prepaying earns you a certain saving equal to the loan’s interest rate, with no risk. Investing may earn more or less and is not guaranteed. The right choice depends on your loan rate, your tax position, your other debts and how much risk you are comfortable with.

Does prepaying a home loan cost a penalty?

It depends on the loan. Rules in India have generally not allowed prepayment charges on floating-rate loans taken by individuals, but fixed-rate loans and other cases can differ, and rules change. Check your loan agreement and ask your lender before prepaying.

Does the calculator include the effect of rate changes?

No. It assumes one interest rate for the whole tenure. If your loan is floating and the rate changes, your EMI or tenure will change; enter the new rate and the balance left to see the effect from that point.

How much home loan can I get on my salary?

Lenders usually cap all your EMIs at a share of your monthly income. The home loan eligibility calculator on this site estimates the amount from your income, existing EMIs, rate and tenure.

What is the home loan EMI per ₹1 lakh?

For every ₹1,00,000 borrowed for 20 years, the EMI is ₹836 at 8%, ₹868 at 8.5% and ₹900 at 9%. Multiply by the number of lakhs: a ₹50,00,000 loan at 8.5% is 50 times ₹868.

Is there a tax benefit on a home loan?

Under the old tax regime, interest on a loan for a home you live in can be deducted up to a yearly limit (₹2 lakh), and the principal repaid counts towards the ₹1.5 lakh deduction under Section 123 (formerly 80C). The new tax regime does not allow the interest deduction for a self-occupied home. The limits and conditions change, so check your own position.

What is a home loan balance transfer?

It means moving the outstanding loan to another lender that offers a lower rate. Compare the interest saved over the remaining years with the costs of moving, such as the new lender’s processing fee and legal charges. Enter the outstanding amount, the new rate and the remaining tenure here to see the new EMI.

Sources

Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.

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