Calculators

Home Loan EMI Calculator

Home loan EMI, total interest and a yearly schedule, plus how much a yearly part-prepayment saves and the tax you get back.

How it works

Home loans in India are reducing-balance loans: each month's interest is charged on what is still owed. A part-prepayment cuts the balance directly. With the EMI unchanged, the tenure shortens, and every rupee prepaid early saves years of interest. Under the old tax regime, up to ₹2 lakh of interest a year is deductible under section 24(b) and principal counts towards the ₹1.5 lakh 80C limit.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P
Loan amount
r
Annual rate ÷ 12 ÷ 100
n
Tenure in months
Prepayment
A lump sum paid off the principal at the end of each year

Worked example

A ₹50,00,000 home loan at 8.5% for 20 years, with ₹1,00,000 prepaid at the end of every year.

  1. 1EMI: ₹43,391 for 240 months
  2. 2Without prepayment, total interest is ₹54,13,879, more than the loan itself
  3. 3With ₹1 lakh a year prepaid, the loan closes in 14 years instead of 20
  4. 4Interest falls to ₹35,58,489

Prepaying ₹1 lakh a year saves ₹18,55,389 of interest and 6 years of EMIs.

Frequently asked questions

Should I reduce the EMI or the tenure after a prepayment?

Reducing the tenure saves much more interest, because the loan stops accruing interest years earlier. Reduce the EMI only if you need the monthly cash flow. Most banks shorten the tenure by default; ask if you want the other option.

Is there a penalty for prepaying a home loan?

Not on a floating-rate home loan to an individual. RBI rules bar banks and housing finance companies from charging foreclosure or part-prepayment penalties on those. Fixed-rate loans can carry a charge, often 2–3% of the amount prepaid.

What tax benefit does a home loan give?

Only under the old regime: up to ₹2 lakh of interest a year on a self-occupied home under section 24(b), and principal repayment within the ₹1.5 lakh 80C limit, which EPF and PPF often fill already. The new regime allows neither for a self-occupied home.

How much home loan can I get?

Banks lend up to 90% of the property value on loans up to ₹30 lakh, 80% up to ₹75 lakh and 75% above that. They also usually keep all your EMIs within 50–60% of your monthly take-home pay.

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