Home Loan EMI Calculator
Calculate your monthly EMI, total interest, and cost of borrowing for a home loan
tuneAdjust Inputs
Monthly EMI
₹43,391
≈ 43.4 Thousand
Total Interest
₹54,13,841
Interest Ratio: 1.08×
Loan Amount
₹50,00,000
48.0% of total
Total Payment
₹1,04,13,841
52.0% is interest
Loan Tenure
20 yr (240 mo)
Total instalments
Interest Rate
8.5% p.a.
Annual rate
Interest
52.0%
Principal
₹50,00,000
Interest
₹54,13,841
functions EMI Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
P = Principal | r = Monthly rate | n = Months
table_chart
Amortization Schedule
Month-by-month & year-by-year breakdown
| Month | Opening Bal. | EMI | Principal | Interest | Closing Bal. |
|---|
* Values rounded. Actual bank schedules may vary slightly.
What is a Home Loan Calculator?
A home loan (or housing loan) calculator helps you estimate your monthly EMI, total interest outgo, and total repayment amount based on loan amount, interest rate, and tenure. It uses the reducing-balance EMI formula — the same method banks use — so the results are accurate and reliable.
Home loans in India are typically offered for up to 30 years. The longer the tenure, the lower the EMI but the higher the total interest paid. This calculator helps you find the optimal balance between affordable EMIs and minimising interest cost.
lightbulb Example Calculation
Scenario: Priya Sharma, 32-year-old IT professional in Bengaluru, takes a ₹50 lakh home loan at 8.5% p.a. for 20 years
1Monthly rate r = 8.5% ÷ 12 = 0.708% = 0.00708
2n = 20 × 12 = 240 months
3EMI = 50,00,000 × 0.00708 × (1.00708)²⁴⁰ / ((1.00708)²⁴⁰ − 1)
✓ Monthly EMI ≈ ₹43,391 | Total interest ≈ ₹54.1 lakh over 20 years
Types of Home Loans in India
Choose the right loan type based on your property and financial situation
🏠
Home Purchase Loan
Most common — for buying a ready-to-move or under-construction property. LTV up to 90% for loans under ₹30L, 80% for ₹30L–₹75L, and 75% above ₹75L.
Most Common
🔨
Home Construction Loan
For building a house on owned land. Disbursed in stages linked to construction progress. Interest is charged only on the disbursed amount.
Stage Disbursal
🔄
Balance Transfer
Transfer existing home loan to a lender offering a lower rate. Saves significant interest. Best done in the first half of tenure when interest component is highest.
Save Interest
🏗️
Plot + Construction Loan
Finances both land purchase and construction. Usually disbursed in two parts — plot loan first, then construction loan. Section 80C and 24(b) deductions apply on the combined loan.
Combined
🔧
Home Renovation Loan
For renovation, repair, or extension of existing property. Smaller loan amounts (up to ₹25L typically). Lower rates than personal loans, interest deductible under Section 24(b).
Tax Benefit
🌱
PMAY Subsidy Loan
Under Pradhan Mantri Awas Yojana — eligible first-time homebuyers get interest subsidy (3–6.5%) credited upfront. EWS, LIG, and MIG categories have different eligibility criteria.
Government
💡 Tax benefits on home loan: Interest up to ₹2 lakh/year is deductible under Section 24(b) for self-occupied property. Principal repayment up to ₹1.5 lakh/year qualifies under Section 80C. For a let-out property, the entire interest is deductible (with set-off limits under new tax regime).
8 Mistakes to Avoid When Taking a Home Loan
A home loan is a 20–30 year commitment — small mistakes at the start cost you lakhs
1
Borrowing the Maximum Sanctioned Amount
Banks sanction up to 80–90% LTV, but you don't need to borrow all of it. EMI should ideally be under 40% of net monthly income. Borrowing the max leaves no room for life events, rate hikes, or investment.
2
Choosing Longest Tenure to Minimise EMI
A 30-year loan on ₹50L at 8.5% costs ₹87L in total interest vs ₹54L for 20 years. Choose the shortest tenure your cash flow allows — and make partial prepayments whenever you have surplus funds.
3
Not Comparing MCLR vs Repo-Linked Rates
Repo-linked external benchmark rates (RLLR) pass RBI rate changes faster than MCLR-linked loans. In a falling rate environment, RLLR benefits you sooner. Always check which benchmark your lender uses.
4
Ignoring Prepayment Options
RBI prohibits prepayment penalties on floating rate home loans. Even ₹1 lakh extra in year 3 of a 20-year loan can save 2–3 years of EMI. Use windfalls (bonus, RSUs, inheritance) to prepay principal aggressively.
5
Underestimating Stamp Duty and Registration
Stamp duty (4–7% of property value) + registration (1%) + GST on under-construction property (5%) adds ₹6–14% to your cost. Many buyers are caught short because they only budgeted the base price.
6
Not Reading the Loan Agreement for Rate Reset
Floating rate loans get reset periodically. Some lenders extend tenure when rates rise (keeping EMI same). Ensure your agreement resets EMI, not just tenure — otherwise you could be paying beyond retirement.
7
Skipping Home Loan Insurance
A ₹50L home loan without term insurance is a risk to your family. A pure term plan of ₹50L costs ₹8,000–₹15,000/year and pays off the loan if you pass away. Do not confuse this with HLPP (home loan protection plan) sold by lenders — it's usually overpriced.
8
Buying Before Verifying Property Title
Even after bank approval, independently verify encumbrance certificate (EC), title deed, occupancy certificate, and approved building plan. Banks do legal checks but they protect their interest, not yours — hire your own lawyer.
Frequently Asked Questions
Everything you need to know about home loans in India
What is the maximum home loan tenure in India?
Most banks offer home loans for up to 30 years. However, the tenure is typically capped such that the loan is fully repaid by the time you turn 70 (or retirement age for salaried borrowers — usually 60). So if you're 45, you may only get a 15–20 year tenure. Longer tenures mean lower EMI but significantly higher total interest paid.
How much down payment do I need for a home loan?
RBI mandates minimum down payments based on loan size: 10% for loans up to ₹30 lakh (LTV 90%), 20% for ₹30L–₹75L (LTV 80%), and 25% for above ₹75L (LTV 75%). These are minimums — paying 25–30% down reduces your loan burden, EMI, and total interest significantly. Plus, a higher down payment improves your loan approval chances.
What CIBIL score is needed for a home loan?
A CIBIL score of 750+ is ideal for getting the best home loan rates. Scores between 700–750 generally get approval but at a slightly higher rate (0.1–0.25% more). Below 700, most banks decline or charge significantly higher rates. Home loans are long-tenure products, so even a 0.5% rate difference on ₹50L over 20 years translates to ₹3–4 lakh extra interest.
Fixed vs floating rate — which is better for home loans?
For long-tenure home loans (15–30 years), floating rate is generally better because: (1) RBI rates tend to ease over time, (2) floating rates can't be fixed 30 years out and banks charge a premium for the certainty of fixed rates, and (3) RBI prohibits prepayment penalties on floating rate loans. Fixed rates are suitable only for 5–7 year loans when you expect rates to rise substantially.
Can I get a home loan on a plot purchase?
Yes, but with conditions. Banks offer plot loans (also called land loans) for residential plots within municipal limits. LTV is usually 70–75%. Tax benefits under Section 24(b) and 80C apply only after construction begins, not on the plot loan itself. The plot must have clear title and be non-agricultural land. Construction must typically begin within 3 years of taking the plot loan.
How does a home loan balance transfer work?
You transfer your outstanding home loan to a new lender offering a lower rate. The new lender pays off your old lender and opens a new loan account. You save on future interest. It's most beneficial in the first 1/3rd of your loan tenure (when interest component of EMI is highest). Watch out for processing fees (0.5–1%) at the new lender, legal charges, and foreclosure fees at the old lender (not applicable for floating rate loans).
What happens to my home loan EMI when RBI changes the repo rate?
For repo-rate linked (RLLR) loans, the rate resets automatically within 3 months of RBI's decision. For MCLR-linked loans, the reset happens on your loan's anniversary date, not immediately. Most lenders keep EMI the same and adjust tenure when rates rise — but you should instruct your bank to adjust EMI instead to avoid extending tenure beyond retirement. When rates fall, insist on EMI reduction to maximize interest savings.
Can I claim both Section 80C and Section 24(b) deductions on a home loan?
Yes. Under the old tax regime: principal repayment qualifies for Section 80C deduction (up to ₹1.5 lakh/year, along with other 80C investments), and interest paid qualifies for Section 24(b) deduction (up to ₹2 lakh/year for self-occupied property; unlimited for let-out with set-off limits). Note: these deductions are not available under the new tax regime (Section 115BAC), except for let-out property under Section 24(b).