Calculate your home loan EMI and total interest payable
₹0
0.0%
Interest on Principal
₹0
Annual Payment
| Year | Total EMI | Principal Paid | Interest Paid | Interest % | Outstanding |
|---|---|---|---|---|---|
| Year 1 | ₹5,20,694 | ₹99,511 | ₹4,21,182 | 80.9% | ₹49,00,489 |
| Year 2 | ₹5,20,694 | ₹1,08,307 | ₹4,12,387 | 79.2% | ₹47,92,181 |
| Year 3 | ₹5,20,694 | ₹1,17,881 | ₹4,02,813 | 77.4% | ₹46,74,300 |
| Year 4 | ₹5,20,694 | ₹1,28,300 | ₹3,92,394 | 75.4% | ₹45,46,000 |
| Year 5 | ₹5,20,694 | ₹1,39,641 | ₹3,81,053 | 73.2% | ₹44,06,359 |
| Year 6 | ₹5,20,694 | ₹1,51,984 | ₹3,68,710 | 70.8% | ₹42,54,375 |
| Year 7 | ₹5,20,694 | ₹1,65,418 | ₹3,55,276 | 68.2% | ₹40,88,957 |
| Year 8 | ₹5,20,694 | ₹1,80,039 | ₹3,40,655 | 65.4% | ₹39,08,918 |
| Year 9 | ₹5,20,694 | ₹1,95,953 | ₹3,24,741 | 62.4% | ₹37,12,965 |
| Year 10 | ₹5,20,694 | ₹2,13,274 | ₹3,07,420 | 59.0% | ₹34,99,691 |
| Year 11 | ₹5,20,694 | ₹2,32,125 | ₹2,88,569 | 55.4% | ₹32,67,566 |
| Year 12 | ₹5,20,694 | ₹2,52,643 | ₹2,68,051 | 51.5% | ₹30,14,923 |
| Year 13 | ₹5,20,694 | ₹2,74,974 | ₹2,45,720 | 47.2% | ₹27,39,949 |
| Year 14 | ₹5,20,694 | ₹2,99,279 | ₹2,21,415 | 42.5% | ₹24,40,670 |
| Year 15 | ₹5,20,694 | ₹3,25,733 | ₹1,94,961 | 37.4% | ₹21,14,937 |
| Year 16 | ₹5,20,694 | ₹3,54,525 | ₹1,66,169 | 31.9% | ₹17,60,412 |
| Year 17 | ₹5,20,694 | ₹3,85,862 | ₹1,34,832 | 25.9% | ₹13,74,550 |
| Year 18 | ₹5,20,694 | ₹4,19,968 | ₹1,00,726 | 19.3% | ₹9,54,582 |
| Year 19 | ₹5,20,694 | ₹4,57,090 | ₹63,604 | 12.2% | ₹4,97,492 |
| Year 20 | ₹5,20,694 | ₹4,97,492 | ₹23,202 | 4.5% | ₹0 |
Notice how interest percentage decreases over time. In early years, most of your EMI goes toward interest. In later years, more goes toward principal repayment.
See how making a prepayment after 1 year can reduce your loan tenure and save on interest:
| Prepayment After 1 Year | New Balance | Tenure Reduced | Interest Saved | New Total Tenure |
|---|---|---|---|---|
| ₹50,000 | ₹48,50,489 | 5 months | ₹2,16,956 | 235 months |
| ₹1,00,000 | ₹48,00,489 | 11 months | ₹4,77,303 | 229 months |
| ₹2,00,000 | ₹47,00,489 | 21 months | ₹9,11,214 | 219 months |
| ₹5,00,000 | ₹44,00,489 | 48 months | ₹20,82,776 | 192 months |
Compare how different loan tenures affect your monthly EMI and total interest:
| Tenure | Monthly EMI | Total Interest | Interest % | Total Payment |
|---|---|---|---|---|
| 10 years | ₹61,993 | ₹24,39,141 | 48.8% | ₹74,39,141 |
| 15 years | ₹49,237 | ₹38,62,656 | 77.3% | ₹88,62,656 |
| 20 years (Current) | ₹43,391 | ₹54,13,879 | 108.3% | ₹1,04,13,879 |
| 25 years | ₹40,261 | ₹70,78,406 | 141.6% | ₹1,20,78,406 |
| 30 years | ₹38,446 | ₹88,40,443 | 176.8% | ₹1,38,40,443 |
See how different interest rates affect your EMI and total interest payment:
| Interest Rate | Monthly EMI | Difference | Total Interest | Total Payment |
|---|---|---|---|---|
| 7.0% p.a. | ₹38,765 | +₹38,765 | ₹43,03,587 | ₹93,03,587 |
| 7.5% p.a. | ₹40,280 | +₹40,280 | ₹46,67,118 | ₹96,67,118 |
| 8.0% p.a. | ₹41,822 | +₹41,822 | ₹50,37,281 | ₹1,00,37,281 |
| 8.5% p.a. (Current) | ₹43,391 | +₹43,391 | ₹54,13,879 | ₹1,04,13,879 |
| 9.0% p.a. | ₹44,986 | +₹44,986 | ₹57,96,711 | ₹1,07,96,711 |
| 9.5% p.a. | ₹46,607 | +₹46,607 | ₹61,85,574 | ₹1,11,85,574 |
| 10.0% p.a. | ₹48,251 | +₹48,251 | ₹65,80,260 | ₹1,15,80,260 |
| 10.5% p.a. | ₹49,919 | +₹49,919 | ₹69,80,559 | ₹1,19,80,559 |
| 11.0% p.a. | ₹51,609 | +₹51,609 | ₹73,86,261 | ₹1,23,86,261 |
Even a 0.5% difference in interest rate can significantly impact your total payment. Always negotiate for the best rate!
Calculate your tax savings based on your tax bracket:
| Tax Bracket | Principal (80C) | Interest (24b) | Additional (80EEA) | Total Savings |
|---|---|---|---|---|
| 30% (₹15L+) | ₹29,853 | ₹60,000 | ₹45,000 | ₹1,34,853 |
| 20% (₹12.5L-₹15L) | ₹19,902 | ₹40,000 | ₹30,000 | ₹89,902 |
| 15% (₹10L-₹12.5L) | ₹14,927 | ₹30,000 | ₹22,500 | ₹67,427 |
| 10% (₹7.5L-₹10L) | ₹9,951 | ₹20,000 | ₹15,000 | ₹44,951 |
| 5% (₹5L-₹7.5L) | ₹4,976 | ₹10,000 | ₹7,500 | ₹22,476 |
Note: Section 80EEA provides additional ₹1.5L deduction on interest for first-time home buyers (property value ≤ ₹45L, loan sanctioned between April 2019 - March 2022).
A home loan (also called housing loan or mortgage) is a secured loan provided by banks and NBFCs to help you purchase, construct, renovate, or extend residential property. The property itself serves as collateral, which is why home loans typically have lower interest rates compared to personal loans.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]
Where: P = Principal loan amount, r = Monthly interest rate (annual rate / 12 / 100), n = Total number of months
Example:
For a ₹50 lakh loan at 8.5% p.a. for 20 years:
• P = ₹50,00,000
• r = 8.5 / 12 / 100 = 0.00708
• n = 20 × 12 = 240 months
• EMI = ₹43,391 per month
• Total Interest = ₹54,13,840 (108% of principal!)
Home loan EMI is structured so that in the early years, a larger portion goes toward interest, and gradually the principal component increases. This is called amortization:
80-85%
of EMI goes to interest payment
50-60%
of EMI goes to interest payment
20-30%
of EMI goes to interest payment
This is why prepaying in the early years has maximum impact - you're reducing the principal on which future interest is calculated.
For a first-time buyer in 30% tax bracket with property ≤ ₹45L:
Pros:
Cons:
Best for: Risk-averse borrowers expecting rate hikes
Pros:
Cons:
Best for: Most borrowers, especially in declining rate environment
Tip: Some banks offer hybrid loans - fixed for 3-5 years, then floating. This gives initial stability while allowing future flexibility. Current trend (2026): Floating rates are 7.5-9.5% vs Fixed at 8.5-10.5%.
Option 1: Reduce EMI
Keep tenure same, pay lower EMI each month
Best for: Those seeking immediate cash flow relief, nearing retirement, or managing multiple EMIs
Option 2: Reduce Tenure
Keep EMI same, become debt-free faster
Best for: Maximum interest savings (2-3x more than reducing EMI), those with stable income
Pro Tip: Reducing tenure saves significantly more interest than reducing EMI!
Just because you're approved for ₹75L doesn't mean you should take it. Limit EMI to 35-40% of monthly income. Banks approve based on income but don't consider your other expenses, lifestyle, or future goals. Taking maximum loan leaves no room for emergencies or other investments.
Home loans come with processing fees (0.5-1% of loan), legal charges, valuation fees, CERSAI charges, insurance, documentation charges, and more. These can add up to ₹50,000-₹1,50,000. Always get an itemized cost breakdown before signing. Some charges are negotiable - ask for waivers!
Loan agreement has critical clauses: prepayment penalties (2-5% for fixed rate), reset clause (bank can change interest spread), MCLR vs base rate linkage, foreclosure charges, conversion charges (fixed to floating), and cross-default clauses. Read every page or hire a lawyer. One hidden clause can cost lakhs!
30-year tenure keeps EMI low but costs 2-3x in interest. For ₹50L at 8.5%: 20 years = ₹54L interest vs 30 years = ₹88L interest - ₹34L extra! If affordable, choose 15-20 years. You can always extend tenure later if needed, but shortening it requires prepayment. Start with shorter tenure, not longer.
Even one missed EMI damages CIBIL score, triggers penalties (2% per month on overdue), and marks your account as irregular (DPD - Days Past Due). Three consecutive misses classify loan as NPA (Non-Performing Asset), leading to legal action and property attachment. Set up auto-debit and maintain buffer balance. If struggling, inform bank proactively for restructuring.
Many borrowers don't claim full ₹3.5L deduction (₹1.5L principal + ₹2L interest), missing ₹1.05L annual tax saving at 30% bracket. Keep: loan statement, interest certificate from bank, possession certificate, and principal repayment receipts. For pre-construction interest, claim in 5 equal installments after possession. Co-borrowers can claim separately if both paying EMI.
0.5% rate difference on ₹50L/20 years = ₹5.3L extra interest! Don't go with first bank or builder's tie-up. Compare at least 5-7 lenders: interest rate, processing fees, prepayment terms, loan-to-value ratio, tenure options, customer service, disbursement speed. Use home loan aggregators. Many offer ₹10,000-50,000 cashback. Public sector banks (7.5-8.5%) vs Private (8.0-9.0%) vs NBFCs (8.5-10%).
If current rate is 9.5% and market rate is 8.0%, you're losing ₹5-7L over remaining tenure! Balance transfer (refinancing) takes 15-30 days and costs ₹15,000-30,000 in processing. If you have ₹30L outstanding with 15 years left, 1.5% reduction saves ₹4-5L. Calculate breakeven: Cost ÷ Monthly savings. Worthwhile if remaining tenure >5 years and rate difference >1%.
CIBIL 750+ gets you 0.5-1% better rate (saves ₹5-10L on ₹50L loan!). How to improve: Pay all dues on time for 12+ months, maintain credit utilization <30%, don't close old credit cards (long credit history helps), avoid multiple loan inquiries (impacts score), check CIBIL quarterly for errors, dispute inaccuracies. Each 50-point improvement can lower rate by 0.25%. Worth spending 6-12 months improving before applying.
Instead of minimum 20% down payment, aim for 30-40%. Benefits: Lower loan amount = less interest, better negotiation power for interest rate (0.25-0.5% reduction), lower LTV ratio reduces lender risk, no need for mortgage insurance if LTV <70%, easier approval for self-employed. For ₹70L property: 20% down (₹14L loan ₹56L) vs 40% down (₹28L loan ₹42L) saves ₹23L in interest over 20 years!
Instead of fixed EMI, choose step-up loans where EMI increases 5-10% annually matching your expected salary hikes. Start with lower EMI (better cash flow in early career), automatically increase as income grows, reduces tenure significantly (20 years → 15 years), saves 20-30% interest. Ideal for professionals in 20s-30s expecting career growth. Some banks offer flexi-pay where you pay more in some months, less in others.
If moving from rented (₹25K/month) to owned (₹40K EMI), the ₹25K rent saving can fund prepayment! Real cost is only ₹15K more than rent. Use ₹20K rent savings for annual ₹2.4L prepayment - reduces 20-year loan to 12-13 years, saves ₹15-20L interest. Psychological: Don't treat house as "extra expense" - it's replacing rent. Many people overspend post-purchase; channel rent savings systematically.
MCLR (Marginal Cost of Funds based Lending Rate) resets every 1-3 months, ensuring faster transmission of RBI rate cuts. Base rate loans reset annually or never! Post-2016 loans must be MCLR-linked. For existing base rate loans, switch to MCLR (may cost ₹5-10K but saves lakhs). Even better: New loans from April 2019 are repo rate-linked (resets immediately with RBI changes). Ensure reset clause favors you during rate cuts.
Adding working spouse/parent as co-applicant: Increases eligibility by 1.5-2x (combined income), women co-applicants get 0.05% rate concession in many banks, both can claim full tax deduction separately (₹7L combined = ₹2.1L tax saving!), improves approval chances for self-employed. But: Both become liable for full loan, impacts co-applicant's future borrowing capacity. Choose wisely - ideally spouse who's also paying EMI.
Banks push bundled term insurance + home insurance at inflated rates. ₹50L term life cover: Bank charges ₹15-20K/year vs online ₹8-10K/year. Home insurance: Bank charges ₹15K/year vs standalone ₹6-8K/year. Over 20 years, separate insurance saves ₹2-3L! Legally, you can buy insurance anywhere (RBI circular 2011). Just provide insurance copy to bank. Buy adequate term cover (3-5x loan amount), not just loan amount.
Before house hunting, use EMI calculator to determine affordable price. Work backwards: If you can pay ₹50K EMI at 8.5% for 20 years, you can afford ₹62L loan (+ ₹20L down payment = ₹82L property). This prevents: Falling in love with unaffordable property, Taking excessive loan, Making impulsive decisions under builder pressure. Calculate: EMI affordability (35-40% of income), down payment availability, emergency fund retention, property cost = loan + down payment + registration (6-8%) + stamp duty + interiors.
This calculator provides estimates based on the inputs you provide. Actual EMI, interest rates, and loan terms may vary depending on the lending institution, your credit profile, property value, LTV ratio, and market conditions. Interest rates mentioned are indicative and subject to change based on RBI policy, bank MCLR, and individual eligibility. Tax benefits are subject to prevailing Income Tax Act provisions and individual tax liability. Processing fees, prepayment charges, and other costs vary by lender. Always verify loan terms, read the complete loan agreement, and calculate the effective cost before committing. This tool is for informational purposes only and does not constitute financial advice. Consult a certified financial advisor or chartered accountant for personalized guidance based on your specific financial situation, goals, and risk profile. Past rate trends do not guarantee future performance.