Loans & EMI

    Home Loan Calculator

    Compute home-loan EMI, total interest and year-by-year outstanding balance. Model different tenures and rates in seconds.

    Inputs
    %
    years
    Result
    Monthly Home Loan EMI
    ₹43,391
    • Principal₹50,00,000
    • Total Interest₹54,13,879
    • Total Payment₹1,04,13,879
    • Tenure240 months
    • Interest Rate8.5%

    You will pay ₹43,391 every month for 240 months. Total interest cost: ₹54,13,879 (108.28% of principal).

    Principal vs Interest
    Step-by-step calculation
    1. Monthly rate r = 8.5 / 12 / 100 = 0.007083
    2. Number of months N = 20 × 12 = 240
    3. EMI = P·r·(1+r)^N / ((1+r)^N − 1) = ₹43,391
    4. Total payment = EMI × N = ₹1,04,13,879
    5. Total interest = Total − Principal = ₹54,13,879
    Detailed Breakdown
    YearPrincipal PaidInterest PaidBalance
    1₹99,511₹4,21,182₹49,00,489
    2₹1,08,307₹4,12,387₹47,92,181
    3₹1,17,881₹4,02,813₹46,74,300
    4₹1,28,300₹3,92,394₹45,46,000
    5₹1,39,641₹3,81,053₹44,06,359
    6₹1,51,984₹3,68,710₹42,54,375
    7₹1,65,418₹3,55,276₹40,88,957
    8₹1,80,039₹3,40,655₹39,08,918
    9₹1,95,953₹3,24,741₹37,12,965
    10₹2,13,274₹3,07,420₹34,99,691
    11₹2,32,125₹2,88,569₹32,67,566
    12₹2,52,643₹2,68,051₹30,14,923
    13₹2,74,974₹2,45,720₹27,39,949
    14₹2,99,279₹2,21,415₹24,40,670
    15₹3,25,733₹1,94,961₹21,14,937
    16₹3,54,525₹1,66,169₹17,60,412
    17₹3,85,862₹1,34,832₹13,74,550
    18₹4,19,968₹1,00,726₹9,54,582
    19₹4,57,090₹63,604₹4,97,492
    20₹4,97,492₹23,202₹0
    How this is calculated
    EMI = P × r × (1 + r)ᴺ / ((1 + r)ᴺ − 1)
    • P = principal, r = monthly interest rate, N = total months.
    • Uses the reducing-balance method used by all Indian banks and NBFCs.
    • Total interest = EMI × N − P.
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Estimating affordability before searching for a property (bank pre-approval).
    • Comparing floating vs fixed-rate offers and RLLR vs MCLR products.
    • Modelling a lumpsum prepayment (bonus / RSU vesting) impact on tenure & interest.
    • Calculating the annual tax deduction under Sections 24 and 80C.
    Overview

    Understanding the Home Loan

    A home loan is the single largest financial commitment most Indian families make — commonly ₹30 lakh to ₹2 crore, over 15 to 30 years, from HDFC, SBI, ICICI, Axis or an HFC like LIC HFL or Bajaj Housing. Rates today are almost universally floating and linked to the RBI Repo Rate (RLLR). Even a 25 bps drop compounds into ₹1–2 lakh of savings on a ₹50 lakh loan. This calculator returns the EMI, total interest, amortization and the tax benefit under Sections 24(b) and 80C.

    Under Section 24(b), interest paid on a self-occupied home loan is deductible up to ₹2 lakh per year (old regime); under Section 80C, principal repayment is deductible up to ₹1.5 lakh (combined with other 80C items). First-time buyers may claim an additional ₹50k–1.5L under Sections 80EE / 80EEA subject to conditions. Model the after-tax EMI cost using this calculator alongside our Income Tax calculator.

    Prepayments early in the loan tenure save disproportionate interest because EMIs are interest-heavy at the start. Even one extra EMI per year cuts a 20-year loan by ~4 years.

    Worked examples

    Real-world scenarios, step-by-step

    ₹75 L @ 8.5% for 25 years

    Buying a ₹1 Cr flat with 25% down and a joint home loan.

    • EMI ≈ ₹60,415 | Total ≈ ₹1.81 Cr | Interest ≈ ₹1.06 Cr
    • Y1 interest ≈ ₹6.34 L (fully deductible up to ₹2 L u/s 24)
    EMI ≈ ₹60,415/month.
    Rates & reference

    Home-loan tax benefits (old regime, FY 2025-26)

    SectionDeductionCapCondition
    24(b)Interest — self-occupied₹2,00,000/yrLoan sanctioned, construction complete <5 yrs
    24(b)Interest — let-outNo cap (loss capped ₹2L)Actual interest paid
    80CPrincipal repayment₹1,50,000/yrProperty not sold within 5 yrs
    80EEFirst-time buyer (top-up)₹50,000/yrLoan ≤₹35L, property ≤₹50L
    80EEAAffordable housing₹1,50,000/yrStamp value ≤₹45L, loan FY19–22
    Pro tips

    Common mistakes to avoid

    Choosing 30-year tenure to reduce EMI — you pay 2× the principal in interest.

    Not opting for MODT insurance separately (bundled loading raises effective rate).

    Ignoring bank switch/BT — a 50 bps drop after 3 years is worth ₹4–6 L on ₹50 L loan.

    Missing Section 24 claim for pre-EMI interest — claimable in 5 equal instalments post-possession.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Ask for RLLR (repo-linked) — faster rate transmission both ways.

    • Split the loan 50:50 with spouse — both claim ₹2L (24) + ₹1.5L (80C).

    • Use bonus / annual RSU as an annual prepayment on 1 April.

    • Keep an emergency fund of 6 EMIs — never miss due to cash-flow shocks.

    Frequently asked questions

    How is a home loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    Can prepayment reduce my interest?+

    Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.

    Keep exploring

    People also ask

    How is a home loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Home Loan Calculator
    How is this loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via EMI Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via EMI Calculator
    How is a personal loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Personal Loan Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via Personal Loan Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). Home Loan Calculator — Taxpex. Retrieved from https://taxpex.com/tools/loans-emi/home-loan-calculator
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