Worked example
Example with the default numbers — change them above.
Home loan amount: ₹50,00,000 · Interest rate (per year): 8.5% · Loan tenure: 20 yrs
A ₹50 L home loan at 8.5% for 20 yrs has an EMI of ₹43,391, so you repay ₹1.04 Cr in total, of which ₹54.14 L is interest.
| Monthly EMI | ₹43,391 · for 20 yrs |
|---|---|
| Total interest | ₹54.14 L · 52% of total payout |
| Total payout | ₹1.04 Cr · principal plus interest |
| Interest in year 1 | 81% · of your EMIs; 4% by year 20 |
How the Home Loan EMI Calculator works
- Enter the loan amount you need after your down payment, the yearly rate from your sanction letter and the tenure in years.
- The yearly rate is divided by 12 and applied each month to the balance still owed.
- The EMI formula picks the fixed payment that clears the loan in exactly your chosen number of months.
- The schedule shows each year's interest, principal and closing balance, so you can see how slowly the balance falls in the early years.
- Use the yearly or monthly schedule toggle, or download it, to check against your lender's amortisation statement.
Home loan EMI formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P = home loan amount
r = yearly interest rate ÷ 12 ÷ 100
n = tenure in months (years × 12)Assumptions and limits
- The rate stays fixed for the whole tenure. Most home loans are floating, so your EMI or tenure will change when your lender revises the rate.
- Interest is charged monthly on the reducing balance. Pre-EMI interest during construction is not included.
- EMIs are rounded to the nearest rupee and the last EMI is adjusted to clear the loan.
- Processing fees, insurance premiums, stamp duty and registration costs are not included.
- Rates differ by lender, profile and loan type. Use the rate from your own offer rather than a rate quoted in advertising.
Frequently asked questions
How do I calculate my home loan EMI?
Use EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) with P as the loan, r as the yearly rate ÷ 12 ÷ 100 and n as months. A ₹50 lakh home loan at 8.5% for 20 years has an EMI of ₹43,391 and total interest of about ₹54.14 lakh. This calculator also shows the year-wise schedule.
How much does tenure change the total interest on a home loan?
A lot. On ₹50 lakh at 8.5%, a 15-year loan has an EMI of ₹49,237 and about ₹38.63 lakh of interest. At 20 years the EMI is ₹43,391 and interest about ₹54.14 lakh. At 30 years the EMI is ₹38,446 but interest rises to about ₹88.40 lakh.
How much extra does a 1% higher home loan rate cost?
On ₹50 lakh over 20 years, moving from 8.5% to 9.5% raises the EMI from ₹43,391 to ₹46,607, a difference of ₹3,216 a month. Total interest rises from about ₹54.14 lakh to about ₹61.85 lakh, roughly ₹7.7 lakh more over the loan.
Is a floating or a fixed home loan rate better?
Neither is better for everyone. A floating rate moves with your lender's benchmark, so your EMI or tenure can rise or fall. A fixed rate gives a predictable EMI but may start higher and may reset after a period. Compare the offers, the reset terms and any switching charges in your sanction letter.
Can I claim a tax deduction on my home loan?
Under the old tax regime, interest on a self-occupied home can be deducted up to ₹2 lakh a year (old Section 24(b), now section 22 of the Income-tax Act, 2025) if the home is completed within five years of the year you borrowed; otherwise the limit is ₹30,000. Principal repayment counts towards the ₹1.5 lakh limit of section 123 (old Section 80C). The new regime allows neither for a self-occupied home. Check the current law or ask a tax professional.
Should I prepay my home loan or invest the money?
It depends on your loan rate, expected investment returns after tax, risk comfort and any prepayment charges. Prepaying gives a known return equal to your loan rate, with no market risk, less any tax deduction on interest you give up. Investing may earn more but is not assured. Our guide on prepaying a home loan versus investing walks through the trade-offs with numbers.
Sources
- RBI (Pre-payment Charges on Loans) Directions, 2025 – no charges on floating-rate loans to individuals sanctioned or renewed from 1 Jan 2026
- RBI: reset of floating interest rate on EMI-based personal loans (your choice of higher EMI or longer tenure)
- Income Tax Department: Income-tax Act, 2025, section 22 – interest on a home loan (old section 24(b))
- Income Tax Department: Income-tax Act, 2025, section 123 – ₹1.5 lakh deduction for specified savings (old section 80C)
Logic and rates last verified on .
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Guides that go deeper
See worked examples
Interest saved and months cut by prepaying ₹1 lakh to ₹25 lakh on ₹30 lakh to ₹1.5 crore home loans.
- How much do you save by prepaying ₹1 lakh on a ₹30 lakh home loan? — Saves ₹3.34 L, 1 yr 4 mo sooner
- How much do you save by prepaying ₹3 lakh on a ₹30 lakh home loan? — Saves ₹8.74 L, 3 yrs 9 mo sooner
- How much do you save by prepaying ₹5 lakh on a ₹30 lakh home loan? — Saves ₹12.9 L, 5 yrs 8 mo sooner