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Home Loan EMI Calculator

What a home loan really costs, and what paying a little extra each month saves.

₹
5,00,00010,00,00,000
% p.a.
615
years
530
Monthly EMI
₹43,391
Amount borrowed
₹50,00,000
Interest you pay
₹54,13,879
Total repaid
₹1,04,13,879

Over 20 years you repay ₹1,04,13,879 on a loan of ₹50,00,000. That is 108% of what you borrowed, added on top, as interest.

What if you pay a bit extra?

Your lender will not model this for you. Every rupee paid on top of the instalment comes straight off the balance, so it stops earning interest for the whole remaining life of the loan. Put in a number you could genuinely manage.

₹
043,391
₹
05,20,694
₹0₹25L₹50L0y4y8y12y16y20y
Hover to read the balance at any year

If the rate moves

Almost every home loan in India is floating, so the rate you sign at is not the rate you pay for the whole term. When it resets, most lenders hold the EMI steady and quietly extend the tenure instead, which is easy to miss because nothing changes in your bank statement. This is what each move does to your loan, at the tenure you set above.

6.50%
₹37,279
or 15y 2m at today's EMI
7.50%
₹40,280
or 17y 1m at today's EMI
8.50%now
₹43,391
your EMI
9.50%
₹46,607
or 25y 9m at today's EMI
10.50%
₹49,919
EMI cannot clear this

Read the bottom line rather than the middle one. Holding the instalment where it is turns a rate rise into extra years rather than a bigger bill, and those years are almost entirely interest. Ask your lender for the revised tenure after every reset.

Repayment schedule

YearPrincipal paidInterest paidBalance 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

Early instalments are mostly interest and late ones are mostly principal, which is why paying extra in the first years saves far more than the same amount paid later.

What a home loan really costs

A ₹50 lakh home loan at 8.5% over 20 years has an EMI of about ₹43,391. Over the full tenure you repay roughly ₹1.04 crore, so the interest alone is close to ₹54 lakh. That is more than the price of the house in many Indian cities a decade ago.

That number is not hidden, but it is never presented. The sanction letter shows the EMI. The schedule above shows what the EMI adds up to.

How an EMI is calculated

EMI = P × i × (1 + i)^n ÷ [(1 + i)^n − 1]
  • P is the loan amount
  • i is the monthly rate, so 9% a year is 0.09 ÷ 12 = 0.0075
  • n is the number of monthly instalments

The instalment stays the same every month, but what it is made of does not. Early on, most of it is interest and very little touches the principal. That reverses over the tenure, which is exactly what the schedule above shows.

Home loan EMI on common amounts

Monthly instalments at 8.5% a year, the rate most salaried borrowers with a good credit score were being offered at the time of writing. Rates move, so re-run your own figure above before committing to anything.

Monthly EMI on a home loan at 8.5% a year
Loan amount10 years15 years20 years25 years30 years
₹25L₹30,996₹24,618₹21,696₹20,131₹19,223
₹50L₹61,993₹49,237₹43,391₹40,261₹38,446
₹75L₹92,989₹73,855₹65,087₹60,392₹57,669
₹1Cr₹1,23,986₹98,474₹86,782₹80,523₹76,891
₹1.5Cr₹1,85,979₹1,47,711₹1,30,173₹1,20,784₹1,15,337

Follow any row from left to right and the EMI keeps dropping, but far more slowly after year twenty. That flattening is the trap: the last ten years of a thirty-year loan barely reduce the payment and add roughly a decade of interest.

Tenure is the expensive decision

Lenders offer longer tenures as a kindness, because it lowers the monthly number and gets the loan approved. Take the same ₹50 lakh at 8.5% over 30 years instead of 20 and the EMI falls by roughly ₹5,000 a month, while the total interest rises by around ₹36 lakh. Move the tenure slider above and watch the interest figure rather than the EMI.

Prepayment: where it actually helps

In the first five years of a 20-year home loan, roughly three-quarters of every instalment is interest. A prepayment then removes decades of compounding interest. The same amount in year fifteen mostly just closes out principal you were about to repay anyway.

Floating-rate home loans in India carry no prepayment penalty for individual borrowers, so the only question is whether the money is better used elsewhere.

Tax relief, briefly

Under the old tax regime, home loan interest on a self-occupied property is deductible up to ₹2 lakh a year under Section 24(b), and principal repayment counts within the ₹1.5 lakh Section 80C limit. The new regime removes most of this. Check which regime you are in before treating the deduction as part of your plan.

Frequently asked questions

How much home loan can I get on my salary?

Lenders typically cap the EMI at 40% to 50% of net monthly income and lend around 75% to 90% of the property value. On a ₹1.5 lakh monthly income that usually means an EMI ceiling near ₹60,000 to ₹75,000, which at 8.5% over 20 years supports a loan of roughly ₹70 lakh to ₹85 lakh.

Should I take a 20-year or 30-year home loan?

A 30-year tenure lowers the EMI but raises total interest steeply, because you owe the balance for ten extra years. If the shorter tenure is affordable, take it. If it is not, take the longer one and prepay when you can. The flexibility is worth more than the lower headline EMI.

How much interest can I save by prepaying my loan?

More than most people expect, because every extra rupee comes straight off the principal and stops earning interest for the whole remaining life of the loan. On a ₹50 lakh loan at 8.5% over 20 years, ₹5,000 a month extra saves roughly ₹13.9 lakh in interest and ends the loan about four and a half years early, close to ₹1.50 saved for every ₹1 prepaid. Put your own figures into the prepayment section above.

Should prepayment reduce my EMI or my tenure?

Reduce the tenure if you can afford to. On the same loan and the same extra ₹5,000 a month, cutting the tenure saves around ₹13.9 lakh in interest against around ₹6 lakh from cutting the EMI, because a shorter loan stops the interest clock sooner. Lenders often apply prepayment to the EMI by default without asking, so state which one you want in writing. Reducing the EMI is the right call only when monthly cash flow is genuinely tight.

Is there a penalty for prepaying a loan?

On floating-rate home loans taken by individuals, the RBI does not permit foreclosure charges or prepayment penalties. Fixed-rate loans and many personal and car loans can carry one, typically 2% to 5% of the amount outstanding. Check the sanction letter before making a large prepayment, and ask for the revised amortisation schedule afterwards.

Is it better to prepay a home loan or invest?

A home loan at 8.5% is a guaranteed 8.5% return if you repay it, and it is risk-free. Equity might average more over long periods but with no guarantee. Many people do both, prepaying enough to shorten the loan meaningfully while continuing a SIP.

What happens to my EMI when interest rates rise?

Most Indian lenders keep the EMI unchanged and extend the tenure instead. This is easy to miss, because nothing changes in your bank statement. Ask for the revised tenure after every rate reset and check it against your retirement plans.

How much interest will I pay on a ₹50 lakh home loan?

At 8.5% over 20 years, roughly ₹54 lakh in interest on top of the ₹50 lakh borrowed, for about ₹1.04 crore repaid in total. Shorten it to 15 years and the interest falls to around ₹38 lakh.

A return needs a portfolio behind it

This tool assumes a rate. These are the books a SEBI-registered desk actually runs to chase one.

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