Home loan EMI calculator
Calculate your home loan EMI, total interest, and view the full year-by-year amortization schedule. Pre-filled with typical Indian home loan defaults.
About home loan EMI
Home loans in India typically range from ₹20 lakh to ₹2 crore with tenures of 15-30 years. Current interest rates from major banks range between 8.25% and 9.5% per annum. The EMI for a ₹50 lakh home loan at 8.5% for 20 years is ₹43,391 — and you'll pay ₹54.1 lakh in interest alone over the full tenure, more than the loan itself. That's why small changes to rate or tenure make a big difference.
"The policy will have to remain awake to the possible sources of fragility engendered by the increase in consumption loans and the proliferation of unsecured forms of consumer credit."
Tax benefits on home loan
Under the old tax regime, home loan borrowers can claim deductions under Section 80C (up to ₹1.5 lakh on principal repayment) and Section 24(b) (up to ₹2 lakh on interest for self-occupied property). First-time buyers get an additional ₹50,000 under Section 80EEA. These deductions can reduce your effective interest cost significantly. The new tax regime removes most of these benefits, so compare both regimes before filing.
How to reduce your home loan interest
Three strategies work: increase your EMI whenever possible (even ₹5,000 more per month shaves years off), make part-prepayments when you receive bonuses, and consider refinancing if rates drop 0.5% or more below your current rate. Even one extra EMI per year can reduce a 20-year loan to about 17 years.
Compare with other loan types
Loan tenure and interest rate affect total cost dramatically. Compare typical EMIs across loan types:
Common Uses
- Home loan affordability check: Before applying for a home loan, calculate the EMI at current rates to confirm it fits within 40–50% of your monthly income.
- Loan comparison: Compare EMIs across banks at different interest rates to identify the lender offering the most affordable monthly outflow.
- Pre-payment planning: Model how a lump-sum part-payment changes the remaining EMI or tenure to plan annual bonus utilisation.
- Car loan budgeting: Determine the on-road price range where the car loan EMI stays within a comfortable monthly budget.
- Personal loan evaluation: Calculate the total interest paid over the loan tenure to evaluate whether the purpose justifies the cost of borrowing.
- Business loan planning: SMEs calculate equipment or working capital loan EMIs to confirm the business cash flow can comfortably service the debt.
- Refinancing analysis: Compare current loan EMI with a refinanced loan at a lower rate to quantify the monthly saving and break-even period.
- Tenure optimisation: Adjust tenure to find the sweet spot between a manageable EMI and minimum total interest paid.
FAQ
What is a good interest rate for a home loan in India?
As of 2026, anything between 8.25% and 8.75% is competitive for a prime borrower with a good credit score. Rates above 9% usually reflect either a lower credit score, a smaller down payment, or loans from NBFCs rather than banks.
Should I choose a 15-year or 20-year tenure?
Shorter tenure means higher EMI but dramatically lower total interest. On a ₹50 lakh loan at 8.5%, 15 years costs ₹39 lakh in interest while 20 years costs ₹54 lakh. Run both in the calculator and pick the shortest tenure where you can comfortably afford the EMI plus a buffer.
Can I prepay my home loan?
Yes. RBI mandates no prepayment penalty on floating-rate home loans. Fixed-rate loans may have a small penalty (1-2%). Part-prepayment directly reduces the outstanding principal and saves significant interest over the loan's life.
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By the Numbers
- India's total outstanding home loan portfolio crossed ₹27 lakh crore in 2024 (Reserve Bank of India data)
- The average home loan tenure in India is approximately 15–20 years (National Housing Bank)
- Banking norms recommend total EMIs should not exceed 40–50% of monthly gross income (standard RBI guidelines)
- A 1% change in interest rate on a ₹50 lakh, 20-year loan shifts the EMI by approximately ₹3,200