Home Loan EMI Calculator: Your Complete Guide
A home loan runs for 15 to 30 years at a rate that usually moves with a benchmark, so a small change in the amount, the rate or the tenure shifts the total repaid by lakhs. The calculator above shows the EMI, the total interest and the month-by-month schedule for the figures you enter.
What Is EMI and How Is It Calculated?
EMI stands for Equated Monthly Instalment: the fixed amount paid to the lender every month until the loan is repaid. Each EMI pays the month's interest on the outstanding balance first, and the rest reduces the balance. Early on most of the EMI is interest; as the balance falls, the principal share grows. The amortisation schedule above shows this month by month.
The formula for EMI is:
EMI = P x r x (1+r)n / ((1+r)n - 1)
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12 and then by 100)
- n = Total number of monthly instalments (tenure in months)
How Home Loan Rates Are Set
A bank's floating-rate home loan must be linked to an external benchmark rate, and the rate must be reset at least once every three months. The rate charged is the benchmark plus a spread that depends on the lender's policy and the borrower. Before signing, the lender gives a Key Facts Statement with the Annual Percentage Rate, which adds processing fees and other charges to the interest rate, and the full repayment schedule. The calculator works on the interest rate alone.
Factors That Affect Your Home Loan EMI
- Loan amount: the EMI and the interest rise in proportion to the amount borrowed. RBI caps the loan for housing finance companies at 90% of the property value up to ₹30 lakh, 80% from ₹30 lakh to ₹75 lakh and 75% above that, so the rest is paid by the buyer.
- Interest rate: on a ₹50 lakh loan over 20 years, 8.0% instead of 8.5% reduces total interest by about ₹3.8 lakh.
- Tenure: a longer tenure lowers the EMI and raises the interest. A ₹50 lakh loan at 8.5% costs about ₹38.6 lakh in interest over 15 years (EMI ₹49,237) and about ₹88.4 lakh over 30 years (EMI ₹38,446).
What Changes the Total Cost During the Loan
- Part-prepayment: a lump sum reduces the balance on which interest is charged. A bank or NBFC may not charge for prepaying a floating-rate loan taken by an individual for a non-business purpose, in part or in full, from any source and with no lock-in. The Pro mode shows the interest saved by prepayments you enter.
- Rate resets: when a floating rate changes, the borrower can take a changed EMI, a changed tenure or a mix of both, or prepay. Pro mode works out both outcomes.
- Balance transfer:moving the loan to another lender changes the rate on the remaining balance; the new lender's fees appear in its Key Facts Statement.
- Step-up EMI: a plan in which the EMI rises each year. Pro mode models a yearly percentage rise.
Tax Benefits on Home Loans
The figures are the same under the Income-tax Act, 2025 (tax year 2026-27 onwards) and the Income-tax Act, 1961 (FY 2025-26); the sections differ.
- Interest on a house you live in (old regime): up to ₹2,00,000 a year if it was bought or built with the loan and completed within five years from the end of the year the loan was taken; otherwise ₹30,000. Interest paid before possession is allowed in five equal yearly parts, inside the same cap. Section 22 of the 2025 Act; section 24(b) of the 1961 Act.
- Interest on a let-out house: deductible in full against the rent, but a loss under the head can be set off against salary or other income only up to ₹2,00,000 a year; the rest is carried forward for up to eight years. Sections 109 and 110 of the 2025 Act; section 71(3A) of the 1961 Act.
- Principal repaid (old regime): within the ₹1,50,000 yearly limit shared with PF, life cover, ELSS and the other listed items; taken back if the house is sold within five years of the end of the year of possession. Section 123 and Schedule XV of the 2025 Act; section 80C of the 1961 Act.
- Section 80EEA: the extra ₹1,50,000 interest deduction for a first home applies only to loans sanctioned from 1 April 2019 to 31 March 2022. A loan taken now cannot claim it.
In the new tax regime there is no interest or principal deduction for a house you live in, and a house property loss cannot be set off against other income (section 202(2) of the 2025 Act; section 115BAC(2) of the 1961 Act). Pro mode works out the tax saved in each financial year with the caps applied. To compare regimes on your whole income, use the Income Tax Calculator.
Understanding the Amortization Schedule
The amortisation schedule splits each EMI into principal and interest. On a ₹50 lakh loan at 8.5% over 20 years, the first EMI of ₹43,391 is 82% interest; after ten years the interest share is still 57%. Because interest is charged on the balance, a prepayment made early in the tenure removes more interest than the same sum paid late.
Frequently Asked Questions
Can a lender charge for prepaying a floating-rate home loan?
No. Under the RBI's 2025 Directions, a bank or an NBFC may not levy pre-payment charges on a floating-rate loan given to an individual for a purpose other than business, whether the prepayment is in part or in full, from any source, and with no lock-in period. A housing finance company may not charge on the pre-closure of a floating-rate housing loan from any source, or of a fixed-rate housing loan closed from the borrower's own funds. Other charges, if any, must be disclosed in the sanction letter, the loan agreement and the Key Facts Statement.
What happens to my EMI when the floating rate changes?
A bank's floating-rate home loan is linked to an external benchmark and is reset at least once every three months. When the rate is reset, the RBI's Directions give the borrower the choice of a higher EMI, a longer tenure, or a mix of both, the option to prepay in part or in full, and, where the lender offers it, a switch to a fixed rate. The lender must ensure that a longer tenure does not lead to negative amortisation, where the EMI no longer covers the month's interest. The Pro mode works out both choices for a rate change you enter.
How much of the property value can be borrowed?
For housing finance companies the RBI caps the loan-to-value ratio at 90% for loans up to Rs 30 lakh, 80% for loans above Rs 30 lakh up to Rs 75 lakh, and 75% above Rs 75 lakh, so the buyer's own contribution is at least 10%, 20% or 25%. Stamp duty, registration and documentation charges are not counted in the property cost for this purpose, except for a house costing up to Rs 10 lakh. Stamp duty and registration rates are set by each state.
What must a lender show me before I sign?
A Key Facts Statement, in a language you understand, with the Annual Percentage Rate (the yearly cost of the loan including all charges, not just the interest rate) and the full amortisation schedule. It stays valid for at least three working days for a loan of seven days or more, and a fee not in it cannot be charged later without your explicit consent. During the loan the lender shares a quarterly statement of principal and interest recovered, the EMI, the EMIs left and the APR.
What tax deductions are available on a home loan?
In the old regime, for a house you live in: interest up to Rs 2,00,000 a year (Rs 30,000 if the house was not bought or built with the loan and completed within five years), with interest from before possession spread over five years inside the same cap; and principal repaid within the Rs 1,50,000 limit shared with PF, life cover and similar items. For a let-out house all the interest is deductible against the rent, but a resulting loss can be set off against other income only up to Rs 2,00,000 a year. In the new regime there is no deduction for a house you live in. From tax year 2026-27 these are sections 22, 109, 123 and 202 of the Income-tax Act, 2025; for FY 2025-26, sections 24(b), 71(3A), 80C and 115BAC of the 1961 Act. The section 80EEA deduction applies only to loans sanctioned from 1 April 2019 to 31 March 2022.
Disclaimer:This calculator provides indicative results based on the inputs provided. Actual EMI amounts may vary based on the lender's terms, processing fees, and other charges. This is not financial advice. Please consult your bank or a licensed financial advisor before making borrowing decisions.