Tools To India

Home Loan EMI Calculator

Enter the property price, your down payment, the rate and the tenure to see your monthly instalment, the total interest over the life of the loan, and how the balance falls each year.

Last updated

₹50 Lakh

₹10 Lakh · The part you pay yourself, up front.

Floating home loan rates in India are linked to the RBI repo rate plus a spread.

Home loans commonly run 15 to 30 years. The interest cost rises steeply with tenure.

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Monthly EMI

₹34,712.93

20 years at 8.5% a year, on a monthly reducing balance

What you repay

  • Principal: ₹40,00,000
  • Interest: ₹43,31,103
Price
₹50,00,000
Down payment
−₹10,00,000
Loan amount
₹40,00,000
Total interest payable
₹43,31,103
Total amount payable
₹83,31,103
Interest as a share of what you repay
51.99%
  • Assumes a fixed rate for the whole tenure and that every instalment is paid on time.
  • Processing fees, documentation charges, insurance premiums and GST on fees are not included — ask your lender for the annual percentage rate covering all of them.

Year-by-year repayment schedule

Year-by-year repayment schedule
YearPrincipal paidInterest paidBalance left
1₹79,609₹3,36,946₹39,20,391
2₹86,646₹3,29,909₹38,33,745
3₹94,305₹3,22,251₹37,39,440
4₹1,02,640₹3,13,915₹36,36,800
5₹1,11,713₹3,04,842₹35,25,087
6₹1,21,587₹2,94,968₹34,03,500
7₹1,32,334₹2,84,221₹32,71,166
8₹1,44,031₹2,72,524₹31,27,134
9₹1,56,763₹2,59,793₹29,70,372
10₹1,70,619₹2,45,936₹27,99,753
11₹1,85,700₹2,30,855₹26,14,053
12₹2,02,114₹2,14,441₹24,11,939
13₹2,19,979₹1,96,576₹21,91,959
14₹2,39,424₹1,77,132₹19,52,536
15₹2,60,586₹1,55,969₹16,91,949
16₹2,83,620₹1,32,935₹14,08,329
17₹3,08,689₹1,07,866₹10,99,640
18₹3,35,975₹80,581₹7,63,665
19₹3,65,672₹50,883₹3,97,994
20₹3,97,994₹18,561₹0

How this calculator works

A home loan is the largest and longest borrowing most families ever take, which makes small differences in rate and tenure enormous in rupee terms. This calculator starts from the property price rather than the loan amount, because the down payment you can manage decides how much you actually need to borrow.

Lenders finance a share of the property value, not all of it. Regulatory loan-to-value limits mean you fund the rest yourself, and stamp duty and registration are normally outside the loan too. Budgeting for those up front avoids an unpleasant surprise at registration.

Almost all home loans in India are floating rate, linked to an external benchmark — usually the repo rate — plus a fixed spread. When the benchmark changes, most lenders hold the EMI steady and lengthen or shorten the tenure. Check your statement after every rate change: a loan you thought was 20 years may quietly have become 23.

The formula

Equated monthly instalment

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P
Principal — the amount actually disbursed to you
r
Monthly interest rate = annual rate ÷ 12 ÷ 100
n
Tenure in months

Every retail lender in India quotes EMI on a monthly reducing balance. Interest for a month is charged on the balance outstanding at the start of that month, so the interest portion of each instalment falls and the principal portion rises, even though the instalment itself never changes.

How one instalment splits

Interest this month = outstanding balance × r Principal this month = EMI − interest this month

This is why the early years of a long loan barely dent the principal. On a 20-year home loan, roughly two-thirds of the first instalment is interest.

Worked example: ₹40 lakh at 8.5% for 20 years

Priya buys a ₹50 lakh flat, pays ₹10 lakh as down payment and borrows ₹40 lakh at 8.5% for 20 years.

Step-by-step calculation for the worked example
Property price₹50,00,000
Down payment₹10,00,000
Loan amount₹40,00,000
Monthly rate0.0070833
Tenure240 months
EMI₹34,713
Total repaid over 20 years₹83,31,161
Total interest₹43,31,161

Priya pays more in interest than the flat cost her a decade earlier would have. Cutting the tenure to 15 years raises the EMI to about ₹39,392 — roughly ₹4,700 more a month — but reduces total interest to about ₹30.9 lakh, saving over ₹12 lakh.

Things worth knowing

  • Stamp duty, registration charges, brokerage, society transfer fees and the cost of fitting out the home are normally not financed. Plan for them separately, in cash.
  • Under the old tax regime, interest on a self-occupied house is deductible up to ₹2,00,000 a year under section 24(b), and principal repayment counts towards the ₹1,50,000 section 80C limit. Neither is available under the new regime, which changes the real cost of the loan considerably.
  • Lenders cannot charge a foreclosure or prepayment penalty on floating-rate home loans taken by individuals. If you are quoted one, question it.
  • A joint loan with a co-owner who has income can raise eligibility and lets both borrowers claim the tax deductions separately, but it also makes both fully liable for the whole debt.
  • Ask for the amortisation schedule in writing at sanction, and again after any rate revision. It is the only document that shows what actually changed.

Frequently asked questions

How much down payment do I need?
Lenders finance a capped share of the property value and you fund the rest, so the down payment is typically at least 10–25% depending on the loan size, plus stamp duty and registration which are usually excluded from the loan. Confirm the current loan-to-value limit and the lender’s own policy before you commit to a property.
Fixed or floating rate?
Almost all Indian home loans are floating and linked to the repo rate. Fixed-rate home loans exist but are usually priced higher and often fix the rate only for an initial period. Floating rates pass on cuts as well as rises; fixed rates buy certainty at a premium. There is no universally correct answer — it depends on how much rate uncertainty you can absorb.
Is it better to prepay or to invest the surplus?
Compare the loan rate with what you can earn after tax on an investment of similar risk. Prepaying gives a certain, risk-free return equal to your loan rate. An investment that might beat it is not the same thing as one that will. Many people split the difference: build an emergency fund first, then prepay, then invest.
Can I transfer my home loan to another bank?
Yes — a balance transfer moves the outstanding loan to a lender offering a lower rate. It is worth doing when the rate gap is meaningful and enough tenure remains for the saving to exceed the new lender’s processing and legal fees. Ask your existing lender to match the rate first; they often will.
What happens to my EMI when the repo rate changes?
Most lenders keep the EMI unchanged and adjust the tenure instead. A rate rise therefore extends your loan rather than raising your monthly outgo, which is easy to miss. You can usually ask the lender to raise the EMI and hold the tenure instead — that costs less overall.

Sources

Every figure on this page is traceable to the official source below. If a source has changed since the date shown, please tell us and we will correct it.