How it works
The EMI — equated monthly instalment — is the fixed payment that clears a home loan exactly at the end of its term: EMI = P × i × (1+i)n ÷ ((1+i)n − 1), where P is the amount borrowed, i the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months.
- Enter the loan amount, the annual interest rate and the term in years.
- The calculator converts the rate to a monthly one and the term to months.
- It returns the instalment, the total interest and a month-by-month schedule.
Each instalment is the same size, but its make-up changes: early on most of it is interest, and by the end almost all of it is principal. That is why prepaying early saves far more than prepaying later — and why the schedule below the calculator is worth reading.
Home loans are long, so interest dominates: over 20 years you typically repay close to twice what you borrowed. Prepaying early, when the interest share is highest, saves the most.
Examples
Worked examples:
- ₹50,00,000 at 8.5% for 20 years: EMI ₹43,391, total repaid ₹1,04,13,879, of which ₹54,13,879 is interest.
- Two years shorter: EMI rises to ₹45,273, but total interest falls to ₹47,78,941 — a saving of ₹6,34,938.
- One point cheaper (7.5%): EMI ₹40,280, saving ₹37,338 a year.
Lenders also check affordability: most cap all your EMIs together at 40–50% of take-home pay.
Related: Grade Calculator, ROI Calculator, Mortgage Calculator.
Home Loan EMI Calculator: frequently asked questions
- How is home loan EMI calculated?
- With the reducing-balance formula EMI = P × r(1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the months.
- What tax benefits does a home loan give in India?
- Under the old regime, principal repayment qualifies under Section 80C (up to ₹1.5 lakh) and interest on a self-occupied home under Section 24(b) (up to ₹2 lakh).
- Fixed or floating rate?
- Floating rates follow the lender's benchmark and are usually lower initially; fixed rates give predictable EMIs but can cost more.