Home Loan EMI Calculator

Calculate your exact monthly EMI, total interest payable, and amortization schedule. Transparent calculations, no hidden fees.

RBI-Standard Formula Instant Results Amortization Schedule Share via WhatsApp
Monthly EMI ₹34,083 For a 20-year loan at 8.25% p.a.
Total Interest ₹41,79,830 104% of principal
Total Payable ₹81,79,830 Principal + Interest
Processing Fee ₹20,000 0.5% of loan amount
Effective Rate 8.28% Including fees
Loan to Value 80% LTV ratio

Principal vs Interest

Outstanding Balance Over Time

Amortization Schedule

Period Opening Balance Principal Paid Interest Paid Closing Balance
Year 1 ₹40,00,000 ₹82,048 ₹3,26,944 ₹39,17,952
Year 2 ₹39,17,952 ₹89,079 ₹3,19,913 ₹38,28,873
Year 3 ₹38,28,873 ₹96,712 ₹3,12,279 ₹37,32,161
Year 4 ₹37,32,161 ₹1,05,000 ₹3,03,992 ₹36,27,161
Year 5 ₹36,27,161 ₹1,13,997 ₹2,94,994 ₹35,13,164
Year 6 ₹35,13,164 ₹1,23,766 ₹2,85,226 ₹33,89,398
Year 7 ₹33,89,398 ₹1,34,372 ₹2,74,620 ₹32,55,026
Year 8 ₹32,55,026 ₹1,45,886 ₹2,63,105 ₹31,09,140
Year 9 ₹31,09,140 ₹1,58,388 ₹2,50,604 ₹29,50,753
Year 10 ₹29,50,753 ₹1,71,960 ₹2,37,031 ₹27,78,792

Frequently Asked Questions

How is home loan EMI calculated?
EMI = P × r × (1+r)^n / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate, and n is the number of months. For example, a ₹40L loan (₹50L home price after 20% down) at 8.25% for 20 years gives an EMI of approximately ₹34,083.
What is a good loan-to-value (LTV) ratio?
RBI mandates that banks can lend up to 90% for loans below ₹30L, 80% for ₹30L–₹75L, and 75% above ₹75L. A lower LTV ratio means lower interest costs and better loan terms.
Fixed vs Floating rate — which is better?
Fixed rates provide payment certainty but are typically 0.5–1% higher. Floating rates (linked to RLLR/EBLR) move with RBI policy rates. If rates are near peak, fixed can be advantageous; otherwise, floating typically costs less over 15–20 years.
How does processing fee affect my loan cost?
Processing fees of 0.25–1% are charged upfront and reduce the effective loan amount. On a ₹50L loan, a 0.5% fee = ₹25,000. Always compare the effective annual rate (including fees) across lenders.
What's the maximum home loan tenure in India?
Most banks offer up to 30 years, but the loan must be repaid before age 70 (salaried) or 65 (self-employed). A 30-year tenure reduces EMI but significantly increases total interest outgo.
Is home loan interest deductible under income tax?
Yes — under Section 24(b), you can claim deduction up to ₹2L per year on home loan interest for self-occupied property. Under Section 80C, principal repayment up to ₹1.5L is also deductible.

Related Calculators

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Prepayment
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Refinance
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Bank Rates
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PMAY Subsidy
Check PMAY-U 2.0 interest subsidy eligibility
Monthly EMI ₹34,083

Home Loan EMI Calculator — How It Works

GharCalc uses the standard RBI-compliant reducing-balance formula to compute your Equated Monthly Instalment (EMI). Enter your home price, down payment percentage, interest rate, and loan tenure — and get your exact monthly EMI, total interest payable, and a year-by-year amortisation schedule instantly.

What is EMI?

EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your home loan. It includes both principal repayment and interest charged on the outstanding balance. Higher down payment or shorter tenure = lower total interest cost.

EMI Formula Used

EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments.

Tips to Reduce Interest

Make a larger down payment (20–30%) to reduce the principal. Choose a shorter loan tenure if you can afford higher EMIs. Use our Prepayment Calculator to see how even one extra payment per year saves lakhs in interest.

Current Home Loan Rates

Home loan interest rates in India typically range from 8.25% to 9.5% p.a. for salaried borrowers with good credit scores. Check our Bank Rates page for live rate comparisons from SBI, HDFC, ICICI, and other major lenders.

Frequently Asked Questions

How much home loan can I get on my salary?

Most banks in India lend up to 4–5 times your annual gross salary. For a monthly salary of ₹1 lakh, you may be eligible for a home loan of ₹50–60 lakh. Your actual eligibility also depends on existing debts, credit score, and employer profile. Use our Eligibility Calculator for a personalised estimate.

What is the minimum down payment for a home loan in India?

As per RBI guidelines, banks can finance up to 90% of the property value for loans up to ₹30 lakh (LTV ratio 90%), up to 80% for loans of ₹30–75 lakh, and up to 75% for loans above ₹75 lakh. So the minimum down payment ranges from 10% to 25%.

What is the difference between fixed and floating interest rates?

A fixed rate stays constant throughout the loan tenure, giving you predictable EMIs. A floating rate is linked to the lender's benchmark (MCLR or repo rate) and can change over time. Most Indian home loans today use floating rates since they tend to be lower over long tenures.

Am I eligible for PMAY subsidy?

PMAY (Pradhan Mantri Awas Yojana) provides interest subsidy for first-time home buyers from EWS, LIG, and MIG categories. Subsidies range from 3% to 6.5% on loan amounts up to ₹12 lakh depending on your income group. Use our PMAY Calculator to calculate your exact subsidy benefit.

How does prepayment reduce my home loan burden?

Making lump-sum prepayments reduces your outstanding principal, which in turn reduces the interest charged. If you prepay ₹5 lakh in the 3rd year of a ₹40 lakh loan at 8.5% for 20 years, you can save over ₹8 lakh in interest and close the loan 3 years early. Try our Prepayment Calculator to model your scenario.