Home loan EMI calculator
EMI for a home loan of any amount, rate and tenure up to 30 years, with the year-by-year split between principal and interest and what a shorter tenure saves.
Type the loan amount from the sanction letter, the rate and the tenure.
What is different about a home loan
The arithmetic is the ordinary reducing-balance EMI, the same as the general EMI calculator. What makes a home loan its own question is the size and the length: the amounts run into tens of lakhs, the tenures run to 20, 25 or 30 years, and at those lengths the interest can exceed the amount borrowed. On Rs 40,00,000 at 8.5% for 20 years the EMI is Rs 34,713 and the total interest is Rs 43,31,103, more than the loan. The year table under the result shows how slowly the balance falls in the early years, when almost every rupee of the EMI is interest.
Worked comparison: 15, 20 and 30 years
| Tenure | EMI | Total interest |
|---|---|---|
| 15 years | Rs 39,390 | Rs 30,90,125 |
| 20 years | Rs 34,713 | Rs 43,31,103 |
| 25 years | Rs 32,209 | Rs 56,62,725 |
| 30 years | Rs 30,757 | Rs 70,72,354 |
All rows are Rs 40,00,000 at 8.5%. Going from 20 to 30 years lowers the EMI by about Rs 4,000 a month and adds about Rs 27 lakh of interest. Going the other way, to 15 years, costs about Rs 4,700 more a month and saves about Rs 12 lakh. The usual advice, take the longest tenure the bank offers and prepay when you can, works only if the prepaying actually happens; a shorter tenure is a way of making it compulsory.
Things the calculator cannot know
- Loan-to-value. Banks lend a percentage of the property's value; the rest, plus stamp duty and registration, is your down payment. Enter the loan amount, not the property price.
- Floating rates. Most home loans in India float with the bank's benchmark. When the rate rises, banks usually keep the EMI and stretch the tenure, sometimes far beyond what you signed. Recalculate with the new rate and the outstanding balance when a rate change letter arrives, and ask for the EMI to be raised instead if you can afford it.
- Pre-EMI. On an under-construction property you pay interest only on the amount disbursed until possession; that period is not in the table.
- Fees and insurance. Processing fees, legal and valuation charges, and any insurance bundled into the loan are outside the EMI. Ask for them in writing before you sign.
- Tax. Interest and principal on a home loan can reduce income tax under the old regime, within limits that the Finance Act sets; the new regime treats them differently. That changes the effective cost and belongs in a conversation with your CA, not in this calculator.
Checking the bank's figure
The sanction letter states the EMI. Type its amount, rate and tenure here; the result should match to within a few rupees. A larger gap usually means the tenure in the letter is in months, not years, or that the first EMI date shifts the schedule by a part-month of interest. Ask the bank for the amortisation schedule, which is your right, and compare it with the year table.