Home Loan Calculator India 2026 – Calculate EMI, Interest & Eligibility
Last Updated: May 2026 · FY 2025-26 Data
Calculate your home loan EMI with a full amortisation schedule for all Indian banks.
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Formula
Home Loan EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where P is the home loan principal, r is the monthly interest rate (annual ÷ 12 ÷ 100), and n is the tenure in months.
The outstanding principal at the end of month k is P_k = P × ((1+r)^n − (1+r)^k) / ((1+r)^n − 1). This formula generates the full amortisation schedule shown below.
Worked Examples
Below are four worked examples using the standard reducing-balance EMI formula. Figures are rounded; processing fees and insurance are excluded.
Example 1 — Small loan, short tenure: ₹30,00,000 at 9.0% for 15 years (180 months). Monthly rate r = 9/12/100 = 0.0075. EMI ≈ ₹30,428. Total payment ≈ ₹54,77,000. Total interest ≈ ₹24,77,000.
Example 2 — Typical metro home loan: ₹50,00,000 at 8.5% for 20 years (240 months). EMI ≈ ₹43,391. Total payment ≈ ₹1,04,13,900. Total interest ≈ ₹54,13,900. In month one ₹35,416 is interest and only ₹7,975 is principal — that ratio inverts by the end of the tenure.
Example 3 — Larger loan, longer tenure: ₹75,00,000 at 8.75% for 25 years (300 months). EMI ≈ ₹61,661. Total payment ≈ ₹1,84,98,000. Total interest ≈ ₹1,09,98,000.
Example 4 — Maximum tenure: ₹1,00,00,000 at 9.25% for 30 years (360 months). EMI ≈ ₹82,270. Total payment ≈ ₹2,96,17,000. Total interest ≈ ₹1,96,17,000 — you repay almost three times the amount borrowed, which is why a shorter tenure or regular prepayment matters so much.
About the Home Loan Calculator
Buying a home is the largest financial commitment most Indian families ever make. In major cities like Mumbai, Bengaluru, and NCR, property prices often mean taking a loan that spans two decades. A home loan is not just about the interest rate; it's about the tenure, the prepayment flexibility, and the tax implications. This home loan calculator is designed to help you navigate these complexities with the same rigor a bank's credit officer uses.
How a Home Loan EMI Is Calculated
Every Indian bank — SBI, HDFC, ICICI, Axis, PNB and every NBFC — calculates your home loan EMI with the same reducing-balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). Here P is the loan principal (the amount you actually borrow after your down payment), r is the monthly interest rate (the annual rate divided by 12 and then by 100), and n is the tenure expressed in months. So for a ₹50,00,000 loan at 8.5% for 20 years, P = 50,00,000, r = 8.5 ÷ 12 ÷ 100 = 0.00708, and n = 240. Calculating a home loan EMI by hand means raising (1 + r) to the power of n, which is why an online home loan EMI calculator is far quicker and avoids rounding errors. Each month the bank charges interest on your *outstanding* balance only, so as the principal falls the interest portion shrinks and the principal portion grows — even though your EMI stays the same. The amortisation schedule below shows this month-by-month split for any amount, rate and tenure you enter.
The External Benchmark Linked Rate (EBLR)
Since October 2019, all new bank home loans in India are linked to an external benchmark, which for most banks is the RBI Repo Rate. This means when the RBI raises rates to control inflation, your home loan rate goes up automatically within 90 days. Conversely, when rates fall, your bank is legally required to pass the benefit to you. However, banks add a 'Spread' or 'Margin' on top of the repo rate based on your CIBIL score and risk profile. Negotiating this spread is crucial because while the repo rate floats, the spread usually stays fixed for the life of the loan. A 0.2% difference in spread might seem small, but on a ₹75 Lakh loan over 20 years, it's a difference of nearly ₹2.5 Lakh in total interest.
The Math of Ownership: Principal vs Interest
On a ₹50 Lakh loan over 20 years at 8.5%, your total interest payable is approximately ₹54 Lakh—meaning you pay back more than double what you borrowed. This is the reality of long-term debt in India. However, you have three tools to fight this interest cost:
1. Down Payment Strategy: Increasing your down payment from 20% to 30% doesn't just reduce your loan; it reduces the base on which interest compounds for 200+ months. On a ₹1 Crore home, that extra ₹10 Lakh down payment saves you nearly ₹13 Lakh in interest at 8.5% over 20 years.
2. Tenure Selection: Choosing 20 years instead of 30 years is the single best financial decision most borrowers can make. The EMI increase is manageable (about 10-12% higher), but the interest saving is massive (nearly 40% reduction in total interest). Always run the calculator at multiple tenures before signing the sanction letter.
3. The Power of Prepayment: RBI rules prohibit banks from charging prepayment penalties on floating-rate home loans. Using your annual bonus or increments to pay back just ₹1-2 Lakh every year can save you enough to fund your child's higher education. Even paying one extra EMI every year can shave 4-5 years off a 20-year tenure.
Tax Benefits: Navigating Old vs New Regime
Under the Old Tax Regime, home loans offer significant tax shields. You can claim up to ₹1.5 Lakh under Section 80C for the principal portion and up to ₹2 Lakh under Section 24(b) for the interest portion for a self-occupied property. For a person in the 30% tax bracket, this effectively reduces the interest rate by nearly 200 basis points. However, these benefits are not available in the New Tax Regime. Use our Income Tax Calculator to see which regime makes your home loan more affordable in the long run.
Amortization and Exit Planning
Our calculator generates a full amortization table. Pay close attention to the 'Closing Balance' column. If you plan to sell the house in 5-7 years, you might be surprised to see that you still owe 85-90% of the principal, as most early payments went towards interest. This tool helps you see the truth behind the bank's sales pitch and ensures you borrow only what you can truly afford to pay back without sacrificing your lifestyle or retirement savings.
Frequently Asked Questions
How do I calculate a home loan EMI?
Use the formula EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Calculating a home loan by hand is tedious, so enter your loan amount, interest rate and tenure into the calculator above and it returns the EMI, total interest and full amortisation schedule instantly.
What is a house loan calculator and is it free to use?
A house loan calculator (also called a home loan EMI calculator) is a free online tool that shows your monthly instalment, total interest payable and repayment schedule before you apply. This calculator is completely free, needs no sign-up, and updates results in real time as you change the loan amount, interest rate or tenure.
How much home loan can I borrow on my salary?
Banks typically lend 60-72 times your monthly salary, capped so that total EMIs stay under 50-55% of your net monthly income (the FOIR rule). On a ₹1,00,000 monthly salary with no other loans you can usually borrow around ₹60-72 lakh. Use our loan eligibility calculator to estimate your exact borrowing limit.
Which Indian bank has the lowest home loan interest rate in 2026?
Public-sector banks like SBI, Bank of Baroda and Union Bank, along with HDFC and ICICI, currently offer the most competitive home loan rates, typically 8.3%-9.0% for borrowers with a CIBIL score above 750. Rates are linked to the RBI repo rate and reset every three months, so always compare the latest rate and the spread the bank adds before signing.
What is the maximum home loan tenure in India?
Most Indian banks offer up to 30 years for salaried borrowers, subject to the loan ending before retirement age (usually 65-70). Self-employed borrowers may get up to 25 years.
Are home loan rates fixed or floating?
Since October 2019, RBI has required all bank home loans to be linked to an external benchmark, typically the repo rate. They are floating, with rate resets every 3 months. NBFC home loans may still offer fixed-rate options.
Can I prepay my home loan without penalty?
Yes, RBI prohibits prepayment penalties on floating-rate home loans from banks. NBFC fixed-rate loans may carry a 2-3% penalty.
How much home loan can I get on my salary?
Banks typically lend 60-72 times your monthly salary, capped at total EMI obligations under 50-55% of your net monthly income. Use our loan eligibility calculator for a precise estimate.
What is the tax benefit on a home loan?
Section 80C allows up to ₹1.5 lakh deduction on principal repayment, and Section 24(b) allows up to ₹2 lakh on interest paid for self-occupied property. These benefits are available only under the old tax regime.
Does the EMI change when interest rates change?
Most banks keep the EMI constant and adjust the tenure when rates change. You can request the bank to change the EMI instead, especially when rates rise sharply.