Home Loan EMI Calculator
Work out the monthly EMI on your home loan and how much interest you will pay. Enter the loan amount, interest rate and tenure.
A loan of ₹50.00 lakh at 8.5% for 20 years costs ₹43,391 a month. You would pay ₹54.14 lakh in interest, and in the first year about 81% of each EMI goes to interest.
Assumes the rate stays the same for the whole tenure. Most home loans are floating-rate, so your EMI or tenure can change when the RBI repo rate changes. Processing fees and insurance are not included.
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 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 |
What is a home loan EMI?
An EMI (Equated Monthly Instalment) is the fixed amount you pay the bank every month until the loan is repaid. Each EMI has two parts: interest on the amount you still owe, and principal, which reduces the loan. Because interest is charged on the remaining balance, the early EMIs are mostly interest and the later ones are mostly principal.
How home loan EMI is calculated
Banks use the reducing-balance formula:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P
- loan amount
- r
- monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- number of monthly instalments (years × 12)
Worked example
Where your EMI goes
In the example above, about 81% of what you pay in the first year is interest (₹4.21 lakh of interest and ₹1.00 lakh of principal). The principal part of the EMI only becomes larger than the interest part in year 13. Open the year-by-year schedule in the calculator to see this for your own loan.
What changes your EMI
- Interest rate. On ₹50 lakh over 20 years, each 1 percentage point adds roughly ₹3,100–₹3,200 to the EMI: ₹40,280 at 7.5%, ₹43,391 at 8.5% and ₹46,607 at 9.5%.
- Tenure. A longer tenure lowers the EMI but raises the total interest: ₹49,237 a month over 15 years (₹38.63 lakh interest) against ₹38,446 over 30 years (₹88.40 lakh interest).
- Loan amount. The EMI rises in proportion to the amount you borrow, so a bigger down payment lowers it directly.
- The RBI repo rate. Most home loans are floating-rate loans linked to the repo rate, which is 5.50% after the RBI raised it on 7 October 2026. When it changes, your rate usually changes at the next reset.
Paying less interest with prepayment
Paying part of the loan early cuts the interest because it reduces the balance that interest is charged on. In the example above, a one-time prepayment of ₹5 lakh after 3 years, keeping the same EMI, saves about ₹13.2 lakh of interest and ends the loan 41 months early. Individuals with floating-rate home loans pay no prepayment penalty under RBI rules. Try your own numbers in the Loan Prepayment Calculator.
Tax benefits on a home loan
In the Old Tax Regime, for a home you live in, you can deduct up to ₹2 lakh of interest a year (Section 24(b)) and up to ₹1.5 lakh of principal under Section 80C, which also covers stamp duty and registration in the year you pay them. In the New Tax Regime, neither deduction is available for a self-occupied home. Use the Income Tax Calculator to see which regime leaves you better off.
When to use a different calculator
- Want to know how much you can borrow? Use the Home Loan Eligibility Calculator.
- Comparing offers from different banks? Use the Loan EMI Comparison Tool.
- Deciding whether to buy at all? Read Rent vs Buy.
- Choosing a tenure? Read Best Tenure for a Home Loan.