🏠 Home Loan Calculator

Free Home Loan EMI Calculator for India — calculate monthly EMI, total interest & view amortization schedule instantly in ₹

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Amortization Schedule

* EMI calculated using the reducing balance method · Actual EMI may vary based on bank processing fees, GST & other charges

How Is Home Loan EMI Calculated?

This home loan calculator uses the reducing balance method, the same method used by all major Indian banks including SBI, HDFC, ICICI, and Axis Bank. Each month, interest is charged only on the outstanding principal — so as you repay, the interest component shrinks and the principal component grows.

EMI = P × r × (1 + r)n ⁄ ((1 + r)n – 1)

P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of EMI payments. Enter any home loan amount, set your interest rate, choose a tenure in years or months, and this home loan calculator instantly shows your monthly EMI, total interest payable, total repayment amount, and a complete amortization schedule.

Tips to Reduce Your Home Loan Interest

Make prepayments: Even small lump-sum payments toward principal dramatically cut total interest. On a ₹50 lakh, 20-year home loan at 8.5%, a single ₹1 lakh prepayment in year 3 can save over ₹2.5 lakh in interest. Choose a shorter tenure: A 15-year home loan costs significantly less in interest than a 30-year loan — use this home loan calculator to compare. Negotiate your rate: If your credit score has improved since you took the loan, ask your bank for a rate revision or consider a balance transfer to a lower-rate lender.

FAQ

EMI is calculated using the reducing balance formula: EMI = P × r × (1+r)n / ((1+r)n – 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the total number of monthly instalments. Each month, interest is charged only on the outstanding balance, so the principal component of your EMI increases over time while the interest component decreases.
Home loan interest rates in India typically range from 8% to 10% per annum depending on the lender, your credit score, loan amount, and tenure. Public-sector banks like SBI often offer rates at the lower end, while private lenders and NBFCs may charge slightly more. Always compare the Annual Percentage Rate (APR) which includes processing fees and other charges.
Yes. While most home loans run 10–30 years, some lenders allow tenures as short as 6 months for bridge loans or plot purchase loans. Use the month toggle (Mo) in this home loan calculator to compute EMI for any tenure from 1 month upwards.
Banks generally cap your EMI at 40–50% of net monthly income. On a ₹50,000 salary, your maximum EMI would be around ₹20,000–₹25,000. At 8.5% interest over 20 years, that translates to a loan of roughly ₹20–25 lakhs. The exact amount depends on your existing liabilities, credit score, and the lender's policies.
An amortization schedule is a month-by-month (or year-by-year) table that shows how each EMI payment is split between principal repayment and interest. Early in the loan, a larger share goes toward interest; over time the balance shifts toward principal. This home loan calculator generates a full amortization schedule you can toggle between monthly and yearly views.
Under the old tax regime, you can claim a deduction of up to ₹2 lakh per year on home loan interest under Section 24(b), and up to ₹1.5 lakh on principal repayment under Section 80C. First-time buyers may claim an additional ₹1.5 lakh under Section 80EEA (subject to conditions). Benefits may vary under the new tax regime — consult a tax professional for your specific situation.
Floating rates are linked to the repo rate and adjust periodically — they start lower but carry rate-change risk. Fixed rates stay constant for a set period (usually 2–5 years) giving EMI certainty but are typically 1–2% higher. Most Indian borrowers opt for floating rates since they tend to be cheaper over long tenures. Use this home loan calculator to compare EMIs at both rate levels.
RBI has mandated that banks cannot charge prepayment penalties on floating-rate home loans. For fixed-rate loans, banks may charge 2–3% of the outstanding principal. NBFCs and housing finance companies may have different policies, so always check your loan agreement before making a prepayment.

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