Mortgage Calculator
Calculate monthly payment, total interest and amortization schedule for any home loan
Loan Details
Loan Amount (₹)
₹
Annual Interest Rate (%)
%
Loan Term (Years)
yrs
Extra Monthly Payment (₹) optional
₹
Additional principal payment each month to pay off faster
Monthly Payment
—
Total Interest: —
Total Amount Paid—
Principal—
Loan Term—
Interest Rate—
Amortization Schedule (Yearly)
| Year | Principal | Interest | Balance |
|---|
What is a Mortgage Calculator?
A mortgage calculator computes your fixed monthly payment based on the loan amount (principal), interest rate, and repayment term. It also breaks down how much of each payment goes toward principal versus interest — the amortization schedule.
In India, home loans from banks function exactly like mortgages — the EMI formula is identical. This calculator also shows the impact of making extra principal payments each month, which can significantly reduce your total interest and payoff time.
lightbulb Example Calculation
Scenario: Ananya takes a ₹50 lakh home loan at 8.5% p.a. for 20 years.
1Monthly rate = 8.5% ÷ 12 = 0.708%
2EMI = ₹43,391/month
3Total paid = ₹1,04,13,780 — Interest = ₹54,13,780
✓ Extra ₹10,000/month saves ₹18L interest and 5 years
help_outlineHow to Use the Mortgage Calculator
- Enter the Loan Amount — total principal borrowed (home price minus down payment).
- Enter the Annual Interest Rate — your bank's rate. SBI and major banks offer 8.4–9.5% p.a. as of 2025.
- Enter the Loan Term in years — typically 15, 20, or 30 years for home loans.
- Optionally enter an Extra Monthly Payment — any amount above the EMI applied to principal. See how it reduces your payoff time and total interest.
- The yearly amortization table shows exactly how your balance decreases over time.
Benefits of Prepayment
- On a ₹50L / 8.5% / 20yr loan, an extra ₹5,000/month saves ~₹9L in interest
- Prepayment in early years saves more — most interest is charged in years 1–7
- RBI mandates no prepayment penalty for floating rate home loans
- Even annual lump-sum prepayments (bonus, tax refund) reduce term significantly
- Consider comparing prepayment vs investing the extra amount — if investment returns exceed loan rate, investing may win
Key Terms
- Principal
- The original loan amount borrowed. Each EMI payment chips away at this balance while also covering that month's interest.
- Amortization
- The process of spreading loan repayment over time. In early months, most of your EMI goes toward interest. In later months, more goes toward principal.
- LTV (Loan-to-Value)
- Percentage of property value financed by the loan. Indian banks typically lend up to 75–90% LTV — you fund the rest as down payment.
- Floating vs Fixed Rate
- Floating rates reset with RBI repo rate changes — cheaper when rates fall, risky when they rise. Fixed rates are locked for the full term — predictable but usually 0.5–1% higher initially.
quizFrequently Asked Questions
What is the difference between a mortgage and a home loan in India?
Functionally they are identical — both involve borrowing against property collateral and repaying in monthly instalments. In Indian banking terminology, "home loan" is the standard term used by banks (SBI, HDFC, ICICI etc.). "Mortgage" is the legal instrument used to create the security interest over the property — technically you "mortgage" your property to secure the "home loan." The EMI calculation, amortization, and prepayment mechanics are exactly the same. This calculator works perfectly for Indian home loans and international mortgage calculations alike.
How much home loan can I afford based on my salary?
A common rule is that your total monthly debt payments (EMI) should not exceed 40–50% of your gross monthly income. Banks typically allow EMI up to 50–55% of net take-home salary. For example, if your monthly salary is ₹80,000, a bank may approve EMIs up to ₹36,000–₹40,000. At 8.5% for 20 years, this supports a loan of approximately ₹41–46 lakhs. Use our Loan Eligibility Calculator for a precise figure based on income, existing loans, and bank-specific criteria.
Should I choose a 15-year or 20-year home loan term?
Shorter term = higher EMI but far less total interest. On a ₹50L loan at 8.5%: 15 years → EMI ₹49,244, total interest ₹38.6L. 20 years → EMI ₹43,391, total interest ₹54.1L. The 15-year option saves ₹15.5L but the EMI is ₹5,853 higher each month. The decision depends on cash flow: if the higher EMI is comfortably affordable, the 15-year option is financially superior. If tight on cash, choose 20 years but make partial prepayments whenever possible — even ₹5,000 extra/month on the 20-year loan saves ~₹9L and 3 years.
Why does my EMI stay the same but the interest portion changes each month?
This is how amortizing loans work. Your EMI (monthly payment) is fixed throughout the loan term. However, each month's interest is calculated on the remaining balance — which decreases as you pay down principal. In month 1, a large balance means large interest and small principal. By month 240 (year 20), the balance is small so most of your EMI goes to principal. This is why prepayment in early years is so powerful — you reduce the balance that interest is calculated on, saving interest on all future months.
What additional costs should I budget beyond the EMI?
Beyond EMI, budget for: processing fee (0.5–1% of loan amount, charged upfront), property registration (5–7% of property value as stamp duty + registration in most Indian states), home insurance (mandatory, ~₹5,000–₹20,000/year), maintenance charges for apartments (₹2–5/sq ft/month), property tax, and an emergency fund for repairs. First-time buyers often underestimate these costs — they can add 8–12% to the total outlay. Factor all of these when calculating your total home-buying budget.