Home Loan EMI
Key takeaways
- Over 20 years the ₹50.00 L loan accrues ₹54.14 L of interest — 51.99% of the ₹1.04 Cr you repay in all.
- The balance falls below half the loan only in month 166 (year 14 of 20) — early EMIs are interest-heavy.
- Over 15 years instead of 20, the EMI rises ₹5,845.82 to ₹49,236.98 — and total interest drops ₹15.51 L.
Payment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹99,511 | ₹4.21 L | ₹49.00 L |
| 2 | ₹1.08 L | ₹4.12 L | ₹47.92 L |
| 3 | ₹1.18 L | ₹4.03 L | ₹46.74 L |
| 4 | ₹1.28 L | ₹3.92 L | ₹45.46 L |
| 5 | ₹1.40 L | ₹3.81 L | ₹44.06 L |
| 6 | ₹1.52 L | ₹3.69 L | ₹42.54 L |
About the Home Loan EMI
A home loan EMI is the fixed monthly payment that repays your housing loan over its tenure, combining interest and principal. Because home loans run for long tenures, even a small rate difference changes the total interest substantially.
This calculator shows the EMI and the total interest for your loan amount, rate and tenure, so you can compare options before borrowing.
Frequently asked questions
How is home loan EMI calculated?
With the reducing-balance formula: EMI = P × i × (1 + i)ⁿ ÷ [(1 + i)ⁿ − 1], where P is the loan amount, i is the monthly rate (annual rate ÷ 1200) and n is the tenure in months. Interest is charged only on the outstanding balance.
What tax benefits does a home loan give?
Under the old regime you can claim up to ₹1.5 lakh a year of principal repayment under Section 80C and up to ₹2 lakh of interest under Section 24(b) for a self-occupied home. The new regime largely does not allow these; the Income Tax calculator on this site computes both regimes from your own figures.
Should I prepay my home loan or invest instead?
It depends on your loan rate versus what you could earn elsewhere, and your need for certainty. Prepaying saves guaranteed interest and clears debt sooner; investing may earn more but carries risk. This calculator shows the interest a prepayment would save.
Does a longer tenure make a home loan cheaper?
No. A longer tenure lowers the monthly EMI but increases total interest, because you owe for more months. A shorter tenure costs more each month but far less overall.
What is the difference between fixed and floating home loan rates?
A fixed rate keeps your EMI constant; a floating rate is linked to a benchmark such as the repo rate, so your EMI or tenure changes when rates move. Most Indian home loans are floating.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation, and it is not a loan offer. The lender decides the actual interest rate, EMI, fees and eligibility, and whether insurance cover is required, and a floating rate can change during the loan. Charges you did not enter are not included. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.