Calculate your home loan EMI, total interest payable, amortization schedule, prepayment savings, and tax benefits under Sections 24(b) and 80C
| Interest-to-principal | Category | What it means |
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| Deduction | Annual amount | Tax saved | Section |
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| Region | Typical rate range | Your rate | Status |
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| Year | Principal paid | Interest paid | Total paid | Balance |
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| Metric | Value | Notes |
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Faiq Ur Rahman is a web designer, digital product developer, and founder of Toolraxy, a growing platform of web-based calculators and utility tools. He specializes in building structured, user-friendly tools focused on health, finance, productivity, and everyday problem-solving.
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A home loan EMI (Equated Monthly Instalment) is the fixed amount you pay your lender every month until the loan is fully repaid. Each EMI contains two parts: interest on the outstanding balance and repayment of principal. In the early years, most of your EMI goes toward interest; later, the principal share rises.
The EMI depends on four things: the loan amount (property price minus down payment), the annual interest rate, the loan tenure in years, and the interest rate type (floating, fixed, or hybrid). A longer tenure lowers the monthly EMI but increases total interest. A shorter tenure does the opposite.
This calculator models the reducing-balance method that Indian lenders use for home loans. It also lets you test prepayment strategies, compare your rate against regional benchmarks, and estimate tax savings under the old regime.
Select a currency from the dropdown. The default is Indian Rupee (₹), but the calculator supports 40+ currencies across Asia, Europe, the Americas, and Africa.
Enter the property price and down payment. The loan amount is calculated automatically as property price minus down payment.
Enter the annual interest rate as a percentage and the loan tenure in years (1–40 years).
Choose the interest rate type — floating, fixed, or hybrid. Also select your applicant type (salaried, self-employed, or NRI) and the processing fee percentage.
Optional: enter an extra monthly payment and a start month to model prepayment. The calculator shows how much interest and time you save.
Select your income tax slab, property type (self-occupied or let-out), and tax regime (old or new) to see estimated first-year tax benefits.
Choose a region profile to compare your interest rate against typical rates for PSU banks, private banks, HFCs, or NBFCs in India, or for the US, UK, or Euro area.
Review the results: monthly EMI, total interest, total payment, interest-to-principal ratio, amortization schedule, and a full breakdown.
The calculator uses the standard reducing-balance EMI formula:
EMI = [P × r × (1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]
Where:
| Variable | Meaning |
|---|---|
| P | Loan amount (principal) |
| r | Monthly interest rate = annual rate ÷ 12 ÷ 100 |
| n | Total number of monthly instalments = tenure in years × 12 |
If the interest rate is 0%, the formula reduces to EMI = P ÷ n.
The calculator simulates each month individually. For every period, it calculates interest on the outstanding balance, subtracts that from the EMI to find the principal repaid, and updates the balance. This produces the amortization schedule and total interest figures.
Inputs:
Property price: ₹60,00,000
Down payment: ₹12,00,000
Loan amount: ₹48,00,000
Annual interest rate: 8.5%
Loan tenure: 20 years (240 months)
Step 1: Monthly rate:
r = 8.5 ÷ 12 ÷ 100 = 0.0070833
Step 2: Number of periods:
n = 20 × 12 = 240
Step 3: EMI formula:
EMI = [48,00,000 × 0.0070833 × (1.0070833)²⁴⁰] ÷ [(1.0070833)²⁴⁰ − 1]
(1.0070833)²⁴⁰ ≈ 5.4506
EMI = [48,00,000 × 0.0070833 × 5.4506] ÷ [5.4506 − 1]
EMI = [48,00,000 × 0.038608] ÷ 4.4506
EMI = 1,85,318.4 ÷ 4.4506
EMI ≈ ₹41,643
Step 4: Total payment:
Total payment = EMI × n = 41,643 × 240 ≈ ₹99,94,320
Step 5: Total interest:
Total interest = Total payment − Loan amount = 99,94,320 − 48,00,000 ≈ ₹51,94,320
Interpretation: The interest-to-principal ratio is 51,94,320 ÷ 48,00,000 ≈ 108.2%. This falls in the “Above average” category. You would pay more in interest than the original loan amount over 20 years. Prepaying even a small amount early could reduce this significantly.
The calculator estimates first-year tax benefits under two sections, but only when the old tax regime is selected:
Section 24(b) – Interest deduction:
For a self-occupied property, you can deduct up to ₹2,00,000 of home loan interest per year under the old regime. For a let-out property, the full interest is deductible, though the net house property loss that can be set off against other income is capped at ₹2,00,000 per year.
Section 80C – Principal repayment:
Principal repayment qualifies for deduction within the overall Section 80C limit of ₹1,50,000 per year, shared with other eligible investments like PPF, ELSS, and life insurance premiums.
Important: Under the new tax regime (Section 115BAC), deductions under sections 24(b) and 80C for self-occupied property are not available. For let-out property, interest remains deductible in both regimes, but principal repayment is not deductible under the new regime.
The calculator computes the tax saved as deduction amount × your marginal tax slab rate.
The calculator compares your entered interest rate against typical ranges for different lender categories and regions:
| Region Profile | Typical Rate Range |
|---|---|
| India – PSU banks | 8.25% – 9.00% |
| India – Private banks | 8.40% – 9.50% |
| India – Housing finance companies | 8.50% – 10.00% |
| India – NBFC / fintech | 9.00% – 12.00% |
| United States | 6.00% – 7.50% |
| United Kingdom | 4.50% – 6.00% |
| Euro area | 3.50% – 5.00% |
These ranges are hard-coded reference values and should be verified against current market rates. As of November 2025, PSU banks were offering home loans starting between 7.35% and 7.55%, while private banks started from around 7.65% to 7.90%.
The benchmark table tells you whether your rate falls below, within, or above the typical range for the selected profile.
What is EMI?
EMI stands for Equated Monthly Instalment. It is the fixed monthly payment you make to repay a loan. Each EMI contains interest on the outstanding balance plus a portion of the principal.
How is home loan EMI calculated?
The calculator uses the reducing-balance formula: EMI = [P × r × (1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of monthly payments.
What is the difference between floating and fixed interest rates?
A floating rate changes with market benchmarks like the repo rate. A fixed rate stays constant for the agreed term. Floating rates usually start lower and carry no prepayment penalty for individual borrowers in India. Fixed rates offer certainty but often cost more.
Does prepayment reduce my EMI or my tenure?
Most lenders apply prepayment to the principal, which can either reduce your remaining tenure (keeping EMI the same) or reduce your EMI (keeping tenure the same). The calculator models the tenure-reduction approach.
Are there prepayment penalties on home loans in India?
No. RBI rules prohibit prepayment or foreclosure charges on floating-rate home loans to individual borrowers. The RBI (Pre-payment Charges on Loans) Directions, 2025 reinforced this prohibition effective January 1, 2026.
How much tax can I save on a home loan?
Under the old regime, you can claim up to ₹2,00,000 interest deduction under Section 24(b) and up to ₹1,50,000 principal deduction under Section 80C for a self-occupied property. The tax saved equals the deduction amount multiplied by your marginal tax rate. These deductions are not available under the new regime for self-occupied property.
What is the maximum home loan tenure in India?
Most Indian lenders offer a maximum tenure of 30 years, subject to the borrower’s age and retirement considerations.
What is loan-to-value (LTV) ratio?
LTV is the loan amount divided by the property value. RBI guidelines cap LTV at 90% for loans up to ₹30 lakh, 80% for loans between ₹30 lakh and ₹75 lakh, and 75% for loans above ₹75 lakh.
Can I use this calculator for a let-out property?
Yes. Select “Let-out / rented” in the property type field. The tax benefit calculation changes: the full interest becomes deductible under Section 24(b), though the loss set-off against other income is capped at ₹2,00,000 per year.
What processing fee should I enter?
Indian lenders typically charge between 0.25% and 2% of the loan amount as a processing fee, plus GST. The default is 0.5%. Check your lender’s schedule of charges for the exact figure.
Does the calculator account for inflation?
No. The results are in nominal terms. Inflation reduces the real value of future payments, but the calculator does not adjust for it.
Why does my actual EMI differ from the calculated EMI?
Lenders may use slightly different conventions for day-count, compounding frequency, or rate reset timing. Insurance premiums bundled with the loan, documentation charges, or pre-EMI interest during construction can also change the actual amount.
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