Home Loan Calculator
Calculate your Home Loan EMI, interest breakdown, and see the impact of yearly prepayments.
Extra payment made once a year
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 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 |
Monthly EMI
₹43,391
Principal Amount
₹50,00,000
Total Interest
₹54,13,879
Total Payment
₹1,04,13,879
How the Home Loan Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
This calculator computes your home loan EMI, total interest and full repayment schedule from the loan amount, interest rate and tenure. Home loans are the largest and longest debt most people take, so small differences in rate — and the timing of prepayments — change the total interest by lakhs.
It uses the standard reducing-balance EMI formula. Because tenures run 15 to 30 years, the total interest can rival or even exceed the amount you borrowed: over a 20-year loan you can end up paying more in interest than the principal itself.
Home loans also carry valuable tax benefits under the old regime, which effectively reduce the real cost of borrowing for many buyers.
EMI formula
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
P = principal, r = monthly rate (annual% ÷ 12 ÷ 100), n = number of months.
Prepayment: reduce tenure or reduce EMI?
When you prepay a chunk of principal, most lenders let you either keep the EMI the same and shorten the tenure, or keep the tenure and lower the EMI. Reducing the tenure almost always saves more interest, because you remove the most expensive, longest-lasting principal from the loan.
Reduce the EMI instead only if your monthly cash flow is genuinely tight. And prepay early: a lump sum in year two is dramatically more powerful than the same amount in year fifteen, because it cancels interest across all the remaining years.
Tax benefits and floating rates
- Section 24(b): interest paid is deductible up to ₹2,00,000 per year for a self-occupied home (old regime).
- Section 80C: principal repayment qualifies within the overall ₹1.5 lakh 80C limit (old regime).
- These deductions are available under the old tax regime; the new regime does not allow them for a self-occupied property.
- Most Indian home loans are floating rate, linked to the RBI repo rate. When the repo rate moves, your EMI or tenure changes accordingly.
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 15 years | ₹29,542 | ₹23.2 lakh |
| 20 years | ₹26,035 | ₹32.5 lakh |
A ₹30 lakh loan over 20 years
A ₹30,00,000 loan at 8.5% p.a. for 20 years (240 months) has an EMI of about ₹26,035. Over the full term you repay roughly ₹62.5 lakh — meaning about ₹32.5 lakh is interest, slightly more than the amount you borrowed.
The power of a shorter tenure
Take the same ₹30 lakh at 8.5% but over 15 years. The EMI rises to about ₹29,542 — around ₹3,500 more a month — but total interest drops to roughly ₹23.2 lakh. Paying ₹3,500 extra monthly saves you close to ₹9 lakh in interest over the life of the loan.
Common mistakes to avoid
- Chasing the lowest EMI by maxing out the tenure — you can end up paying more interest than the house cost to borrow.
- Not prepaying in the early years, when each rupee of prepayment cancels the most future interest.
- Assuming the tax benefit applies under the new regime — Sections 24(b) and 80C for home loans are old-regime benefits.
- Overlooking that a floating rate can rise; budget for the EMI going up, not just staying flat.
- Comparing only headline rates and ignoring processing fees, legal and valuation charges.
Frequently asked questions
How can I reduce total home-loan interest?+
Prepay early (the single biggest lever), choose a shorter tenure if you can afford the higher EMI, or refinance to a lower rate. On a ₹30 lakh loan at 8.5%, cutting the tenure from 20 to 15 years saves roughly ₹9 lakh in interest.
Can total interest really exceed the loan amount?+
Yes. Over long tenures it often does. A ₹30 lakh loan at 8.5% over 20 years costs about ₹32.5 lakh in interest — more than the principal itself. Shortening the tenure or prepaying reduces this sharply.
What tax benefits does a home loan give?+
Under the old regime, interest is deductible up to ₹2 lakh per year under Section 24(b) for a self-occupied home, and principal repayment qualifies within the ₹1.5 lakh Section 80C limit. The new regime does not allow these for a self-occupied property.
Fixed or floating interest rate?+
Most home loans in India are floating, linked to the RBI repo rate, and are usually lower initially. Fixed rates give payment certainty but tend to be higher. With floating, your EMI or tenure changes when the repo rate moves.
Does prepayment reduce EMI or tenure?+
You usually get to choose. Reducing the tenure (keeping the EMI the same) saves the most interest and is the better option unless your monthly budget is tight.
Is there a penalty for prepaying a home loan?+
For floating-rate home loans to individuals, the RBI does not permit foreclosure or prepayment penalties. Fixed-rate loans may still carry a charge — check your loan agreement.
When is the best time to prepay?+
As early as possible. A prepayment in the first few years cancels interest across the entire remaining tenure, so it is far more effective than the same amount paid near the end.