Home Loan EMI Calculator — Know Your Monthly Payment

Home loan EMI by loan amount

Monthly EMI on a 20-year tenure, read straight off the same engine the calculator above runs. The three rates bracket the repo-linked band Indian lenders quote — they are illustration points, not a quote for you. Your sanctioned rate depends on your credit score, LTV and employment type, so put your own number into the calculator.

Every cell is arithmetic, not a market survey: EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], computed on the loan amount shown with no processing fee, insurance or GST added. Nothing on this row depends on a published rate, so nothing on it can go out of date.

What tenure does to a ₹40 lakh loan

A longer tenure lowers the EMI and raises the total cost. Both directions, on the same ₹40,00,000 loan at 8.50%:

Stretching from 15 years to 30 buys about ₹8,633 a month and costs about ₹39,82,229 in extra interest over the life of the loan. That is the trade, stated in rupees rather than as a rule of thumb.

Why your bank's EMI calculator might show a different number

Every lender — SBI, HDFC, ICICI, Kotak or any other bank or housing finance company — uses the same reducing-balance formula this page does. For an identical principal, rate and tenure, the EMI should match to the rupee. When a bank's own EMI calculator shows a different figure, it is almost always one of these:

• Nominal rate vs. APR. Since 1 October 2024, RBI requires every regulated lender to issue a Key Facts Statement (KFS) disclosing the Annual Percentage Rate — the nominal interest rate plus processing fee, insurance and other charges rolled into one effective cost. A bank's KFS-linked calculator can quote the APR-based figure while this page, and most independent calculators, compute the EMI on the nominal rate alone. Source: RBI circular RBI/2024-25/18, "Key Facts Statement (KFS) for Loans & Advances," dated 15 April 2024, effective 1 October 2024 — checked 2026-09-01.
• Pre-EMI on an under-construction property. While a builder loan is disbursed in tranches, most lenders charge interest-only "pre-EMI" on the amount actually disbursed, not the full EMI on the sanctioned loan. Full EMI starts only after the last disbursement or possession, whichever the sanction letter specifies. A bank's calculator may be showing pre-EMI for this phase; this page always computes the full post-disbursement EMI.
• Processing fee and insurance bundled into the EMI. Some lenders let a borrower finance the processing fee or a mandatory insurance premium into the loan principal. That raises the disbursed amount and therefore the EMI, even though the property price and quoted rate are unchanged. This page computes EMI on the loan amount you enter, with no fee added — check your sanction letter for whether a fee was capitalised into yours.
• First-EMI proration. If your loan is disbursed mid-month, the first instalment is often a prorated amount for the broken period rather than a full EMI, which can make the very first line on a bank's repayment schedule look smaller than every subsequent one.

If your bank's number and this page's number disagree by more than a rounding difference on the same principal, rate and tenure, ask for the KFS — RBI requires it to itemise every charge separately from the interest rate, which is the fastest way to see exactly where the two figures diverge.

How EMI is actually calculated

Every lender in India uses the same reducing-balance formula. Only the inputs differ:

EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]

where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. On a ₹50,00,000 loan at 8.5% for 20 years, r = 0.00708 and n = 240, giving an EMI of roughly ₹43,391 — and total interest of about ₹54.1 lakh, more than the loan itself.

That last number is the one worth sitting with. Over a long tenure at Indian rates, total interest routinely exceeds the amount borrowed.

Why your early EMIs are almost all interest

The EMI stays constant but its split does not. Interest is charged on the outstanding balance, so at the start — when the balance is highest — most of the payment services interest. On the ₹50 lakh example above, the first EMI splits into ₹35,417 interest and just ₹7,974 principal. The crossover, where principal finally exceeds interest, arrives around year 12 of 20.

This is why prepaying early is worth far more than prepaying late, and why a balance transfer in year 15 saves much less than the headline rate difference suggests.

Prepayment: cut the tenure or cut the EMI?

When you prepay, most lenders let you choose. The two are not equivalent:

• Reduce tenure, keep the EMI. Saves dramatically more interest, because you stop paying it sooner. Choose this unless the monthly outflow is genuinely straining you.
• Reduce the EMI, keep the tenure. Improves monthly cash flow but you keep paying interest for the full term, so lifetime savings are much smaller.

Under RBI rules, floating-rate home loans to individual borrowers carry no prepayment or foreclosure penalty. Fixed-rate loans can, so check which you actually hold before planning a lump sum.

Tax benefits — and the regime that decides whether you get any

This is the single most misunderstood part of an Indian home loan, and most EMI calculators ignore it entirely.

• Old regime. Interest on a self-occupied property is deductible under Section 24(b) up to ₹2,00,000 a year. Principal repayment qualifies under Section 80C, within the combined ₹1,50,000 ceiling shared with EPF, PPF, life insurance and the rest.
• New regime (Section 115BAC — the default). Neither applies to a self-occupied home. Section 80C is unavailable, and the Section 24(b) interest deduction is restricted to let-out property only.

So if you are on the new regime and the property is your own residence, the tax saving people routinely factor into affordability is zero. Work out your effective cost both ways before assuming a deduction you may not be entitled to, and treat this as a starting point for a conversation with a chartered accountant rather than advice.

Moratorium and step-up EMI — the two structures that are not a level EMI

Open Fine-tune your estimate in the calculator above and you can switch the repayment structure. Both of the alternatives change the answer far more than most borrowers expect, and both are routinely presented as concessions.

A moratorium is not a delay. It is a permanently larger loan.

During a moratorium — an EMI holiday, or the pre-EMI period on an under-construction flat — you pay nothing, but interest keeps accruing and is added to the principal. On a ₹40,00,000 loan (₹40 lakh) at 8.75% over 20 years, a 12-month moratorium capitalises ₹3,64,383 of interest, so you resume repaying ₹43,64,383 rather than ₹40 lakh.

From there your lender takes one of two routes, and which one is a term of the sanction letter rather than a choice you make later. Hold the original end date and the EMI rises from ₹35,348 to ₹39,328 — ₹3,979 a month more, for every one of the 228 months that remain. Hold the EMI instead and the loan stretches from 240 months to 330. Twelve months of not paying buys ninety months of paying.

A step-up EMI is cheaper now and dearer overall.

A step-up schedule starts the instalment low and raises it by a fixed percentage at every anniversary. On the same ₹40 lakh loan, a 5% annual step starts at ₹24,549 — ₹10,800 a month below the level EMI — and finishes year 20 at ₹62,034. The loan still clears in 20 years, but because the balance falls more slowly in the early years, when the balance is largest, the total interest is higher than on a level EMI, not lower. The calculator shows both totals side by side so the trade is visible rather than asserted.

Neither mode quotes a rate or a lender policy. The escalation, the holiday length and the interest rate are all your numbers, so nothing on this page can go stale into a wrong figure. If what you actually want is to borrow more against a property you are already paying for, the home loan top-up calculator models the additional amount and the blended EMI; to move the same loan to a cheaper lender, use the balance transfer calculator, and to pay it down faster, the prepayment calculator.

What actually sets your rate

Since October 2019 the RBI has required banks to link floating-rate retail loans to an external benchmark — for most lenders, the repo rate. Your rate is that benchmark plus a spread, and the spread is where lenders differ. It is driven by your credit score, income stability, the loan-to-value ratio, and whether you are salaried or self-employed.

Because the benchmark moves, a floating EMI is not fixed for the life of the loan. Most lenders absorb repo changes by extending tenure rather than raising the EMI, which quietly increases total interest — worth checking on your own statement rather than assuming.

Authoritative resources

• RBI: Housing loan guidelines
• PMAY MIS — Government of India
• National Housing Bank (NHB)
• Income Tax Department — Income from House Property (Section 24 deductions)
• Income Tax Department — Schedule 24(b), interest on borrowed capital