A home loan is usually the largest and longest loan you'll take, so small differences in rate and tenure add up to lakhs. This calculator shows your EMI, total interest and how the balance falls over the years.
How home loan EMI is calculated
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)P = loan amount, r = yearly interest rate ÷ 12 ÷ 100, n = number of monthly instalmentsTotal interest = EMI × n − PEach EMI pays the interest due for that month first, and the rest reduces the loan. Early on most of the EMI is interest; towards the end most of it is principal. That's why prepaying early in a loan saves the most.
Worked example: 20 vs 30 years
| ₹50 lakh at 8.5% | 20 years | 30 years |
|---|---|---|
| Monthly EMI | ₹43,391 | ₹38,446 |
| Total interest | ₹54.1 lakh | ₹88.4 lakh |
| Total paid | ₹1.04 crore | ₹1.38 crore |
Stretching to 30 years lowers the EMI by under ₹5,000 a month but costs over ₹34 lakh more in interest. Taking the shorter tenure you can afford, then prepaying, saves the most. Try it in the loan prepayment calculator.
Down payment, eligibility and charges
- Banks lend up to 75–90% of the property value, depending on the loan size. You pay the rest, plus stamp duty and registration, which usually aren't financed.
- Eligibility is driven by income, existing EMIs, age and credit score. A score above about 750 gets better rates.
- Expect a processing fee, legal and valuation charges, and insurance that lenders may push but can't force.
- Floating-rate home loans for individuals have no prepayment or foreclosure charges.
Tax benefits
In the old regime, interest on a home you live in is deductible up to ₹2 lakh a year, and principal repayment counts towards the ₹1.5 lakh Section 80C limit. In the new regime, these deductions aren't available for a self-occupied home; for a let-out property, interest can still reduce the rental income. Check which regime suits you with the old vs new tax regime calculator.
How to use this calculator
- Enter the loan amount, not the property price.
- Enter your lender's rate.
- Choose the tenure.
FAQs
How much home loan can I get?
Lenders usually cap EMIs at 40–50% of your take-home pay and lend up to 75–90% of the property value.
Can I claim tax benefits on a home loan?
In the old regime, up to ₹2 lakh of interest a year on a self-occupied home, and principal under 80C. The new regime doesn't allow these for a self-occupied home.
Should I prepay my home loan?
Prepaying early in the loan saves the most interest. Try our loan prepayment calculator.
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.