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Indian Home Loan EMI Calculator — Estimate Payments & Prepayments for 2026

This calculator calculates monthly installments using the standard reducing-balance amortization formula: E = P × r × (1+r)^n / ((1+r)^n - 1). It computes interest based on current HDFC and SBI retail lending benchmark rates.

1. Loan Specifications

Frequently Asked Questions (FAQ)

What is the EMI for a ₹50 lakh home loan at 8.75% for 20 years?

The monthly EMI for a ₹50 lakh loan at an 8.75% interest rate for a 20-year tenure is ₹44,186. The total interest payable over 20 years is ₹56,04,535.

How does making a home loan prepayment reduce my tenure?

Making a lump-sum prepayment directly reduces your outstanding principal. This saves on interest compounding, which shortens your remaining tenure while keeping your monthly EMI constant.

Which is better: tenure reduction or EMI reduction during prepayment?

Tenure reduction is highly recommended because it cuts the compound interest duration, saving you significantly more money over the life of the loan compared to lowering the EMI.

What is the tax deduction limit on home loan interest under Section 24?

Under Section 24(b) of the Income Tax Act, you can claim a deduction of up to ₹2 lakh per year on the interest paid for a self-occupied property.

Can joint owners claim home loan tax deductions separately?

Yes. If co-borrowers are also co-owners of the property, each can claim up to ₹1.5 lakh on principal under Section 80C and up to ₹2 lakh on interest under Section 24(b).

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

💡 What Does This Calculator Do?

This calculator helps you estimate your monthly EMI (Equated Monthly Instalment) for a home loan in India. It also calculates the total interest you will pay over the entire tenure and the total cost of the property (Principal + Interest). This helps you plan your home buying budget effectively.

engine_type: compiled | format: inr

📋 How to Use It

  1. 1
    Loan Amount (₹): Enter the total loan amount you wish to borrow from the bank.
  2. 2
    Interest Rate (%/year): Enter the annual interest rate offered by the bank (typically 8% to 12%).
  3. 3
    Tenure (Years): Enter the duration of the loan in years (usually up to 30 years).

🧬 The Logic Explained Simply

  • The Concept: When you take a home loan, you pay it back in equal monthly instalments. In the early years of the loan, a larger portion of your EMI goes towards paying the interest. As time passes, more of the EMI goes towards reducing the principal amount.
  • The Formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

where:

  • P = Principal loan amount
  • r = Monthly interest rate = (Annual Rate / 12 / 100)
  • n = Loan tenure in months = (Tenure in Years × 12)

💡 Real-World Calculation Breakdown

For example, you take a home loan of ₹50,00,000 at an interest rate of 8.5% per annum for a tenure of 20 years (240 months).

  • Monthly rate (r) = 8.5 / 12 / 100 = 0.007083
  • Total months (n) = 20 × 12 = 240
  • Monthly EMI = [50,00,000 × 0.007083 × (1.007083)^240] / [(1.007083)^240 - 1] = ₹43,391
  • Total Amount Payable = ₹43,391 × 240 = ₹1,04,13,840
  • Total Interest Paid = ₹1,04,13,840 - ₹50,00,000 = ₹54,13,840

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