How is home loan EMI calculated?

Home loan EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate, and n is the total number of months. This calculator does the math instantly and shows your complete amortization schedule.

Should I prepay my home loan or invest the surplus?

Compare your loan rate with the return you realistically expect after tax. Prepaying earns a guaranteed, risk-free return equal to your loan rate (for example 7.5%), while equity has returned about 12% a year over the long run (Nifty 50 TRI since inception, pre-tax) with large swings and no guarantee. If you are in the old tax regime and still within the interest-deduction limit, your effective loan cost is lower. Many people do both: partial prepayments plus SIPs.

What is an amortization schedule?

An amortization schedule shows how each EMI payment splits between principal repayment and interest over the loan tenure. In early years, most of your EMI goes toward interest. As the loan matures, a larger portion goes toward principal.

What tax benefits are available on home loans?

Only under the old tax regime. From 1 April 2026 the Income-tax Act, 2025 applies: interest on a loan for a self-occupied house is deductible up to ₹2 lakh a tax year under Section 22(2) (formerly Section 24(b)); the limit is ₹30,000 if construction is not completed within 5 years. Principal repayment counts towards the ₹1.5 lakh limit under Section 123 read with Schedule XV (formerly Section 80C), shared with EPF, PPF, ELSS and insurance premiums. Neither deduction is available under the new regime, which is the default. The extra ₹1.5 lakh under the old Section 80EEA applied only to loans sanctioned by 31 March 2022, so new buyers cannot claim it.

Home Loan EMI Calculator

Calculate your home loan EMI, total interest, and a year-by-year amortization schedule. Save the loan to track rate changes and prepayments.

Loan details

Loan Amount

Annual Interest Rate

Tenure (Years)

Monthly EMI

Total interest
Total payment

Where your payments go

of what you pay is interest

Principal Interest

Your EMI goes mostly to principal from
Half the loan is repaid by

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Year-by-Year Amortization

Year	Principal	Interest	Balance

Calculations use the standard EMI formula with monthly compounding and a fixed interest rate. Results are indicative and exclude processing fees, GST, and prepayment charges. Home loan tax deductions (interest under Section 22(2) and principal under Section 123 of the Income-tax Act, 2025) are available only in the old tax regime and are not included.

What is a Home Loan EMI Calculator?

A home loan EMI calculator works out your Equated Monthly Instalment (EMI), the fixed amount you pay every month to repay a housing loan. By entering the loan amount, interest rate, and tenure, it instantly shows your monthly EMI, total interest payable, and overall cost of the loan over its lifetime.

This calculator uses the standard reducing-balance EMI formula where each payment is split between principal repayment and interest. In the early years, most of your EMI goes toward interest; as the outstanding balance reduces, a larger share goes toward principal. The year-by-year amortization table above shows this shift clearly.

Worked example: EMI on a ₹30 lakh home loan

Illustrative: a ₹30,00,000 loan at 7.5% a year for 20 years, the calculator's default inputs.

Result	20 years	15 years
Monthly EMI	₹24,168	₹27,810
Total interest	₹28,00,271	₹20,05,867
Total payment	₹58,00,271	₹50,05,867
Interest burden	48.3%	40.1%

Over 20 years you pay almost as much in interest as you borrowed. In year 1, about ₹2.23 lakh of your EMIs goes to interest and only ₹67,300 to principal.

The decision this informs is tenure. Cutting it to 15 years raises the EMI by ₹3,642 a month but saves about ₹7.9 lakh of interest. If the higher EMI strains your budget, take 20 years and prepay when you can; most floating-rate home loans carry no prepayment charge.

How to Use This Home Loan Calculator

1

Enter the loan amount

This is the principal amount you plan to borrow, typically 75–90% of the property value after your down payment.
2

Set the annual interest rate

Check your bank's current home loan rate. In November 2026, starting rates for borrowers with strong credit scores were about 7.50% (SBI) to 8.00% (HDFC Bank), after the RBI raised the repo rate from 5.25% to 5.50% on 7 October 2026. Your rate depends on your credit score, loan size and lender. The 7.5% default is only an example.
3

Choose the loan tenure

Home loans typically run 15–30 years. A shorter tenure means higher EMIs but significantly lower total interest paid.
4

Review the amortization breakdown

Scroll through the year-by-year table to see how much principal vs interest you pay each year, and when the loan is fully paid off.

Tips to Reduce Your Home Loan Cost

Make Prepayments

Even one extra EMI a year paid as a lumpsum prepayment shortens the loan and cuts the total interest. Save your loan above to model prepayments and see the new payoff date. RBI rules bar prepayment charges on floating-rate loans taken by individuals for non-business purposes, such as most home loans.

Choose a Shorter Tenure

A 15-year loan instead of 30 years cuts the total interest paid by more than half, even though the EMI is higher. Pick the shortest tenure your budget allows.

Negotiate Your Rate

Banks compete for home loan customers. Compare rates across 3–4 lenders, and use a competitor's offer to negotiate a lower rate with your preferred bank.

Consider a Balance Transfer

If rates drop significantly after you take a loan, transfer the outstanding balance to a bank offering a lower rate. The bigger the outstanding balance, the more a lower rate saves; check the new lender's processing fee first.

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