Home Loan EMI Calculator
Enter your loan amount, annual interest rate, and tenure to get your Equated Monthly Instalment (EMI) right away. You also see total interest payable, the full cost of the loan, and a year-by-year amortization schedule so you know exactly how much principal and interest you pay each year. Adjust any input and the results update instantly.
Formula
Worked example
Loan amount P = 50,00,000; annual rate = 8.5%; tenure = 20 years (N = 240 months). Monthly rate R = 8.5 / 12 / 100 = 0.007083. Factor = (1.007083)^240 = 5.4274. EMI = 50,00,000 * 0.007083 * 5.4274 / (5.4274 - 1) = 43,391. Total payable = 43,391 * 240 = 1,04,13,840. Total interest = 1,04,13,840 - 50,00,000 = 54,13,840.
What is an EMI and how is it calculated?
An Equated Monthly Instalment (EMI) is a fixed sum you pay your lender every month on a set date until the loan is fully repaid. It combines two components: a portion that repays the principal (the borrowed amount) and a portion that covers the interest charged on the outstanding balance. In the early months of the loan, interest makes up the larger share of each EMI. As the principal reduces, the interest component shrinks and more of each payment goes toward clearing the loan. This is called a reducing-balance or diminishing-balance loan structure, and it is standard for home loans in India. The formula used by Indian banks is: EMI = P x R x (1+R)^N divided by ((1+R)^N minus 1), where P is the principal, R is the monthly interest rate (annual rate divided by 12 and by 100), and N is the total number of monthly instalments. For example, a loan of 50 lakh at 8.5% per annum for 20 years gives a monthly rate of 0.7083% and 240 monthly instalments. The EMI works out to about 43,391 rupees per month.
What affects your home loan EMI?
Three variables drive your EMI directly: the loan amount (higher principal means higher EMI), the interest rate (even 0.25% difference compounds significantly over 20 years), and the tenure (longer tenure lowers the EMI but raises total interest paid). A 50-lakh loan at 8.5% for 20 years carries an EMI of about 43,391 and total interest of roughly 54 lakh. The same loan over 30 years drops the EMI to about 38,446, but total interest rises to nearly 88 lakh, a difference of 34 lakh for the convenience of a lower monthly outflow. Processing fees, technical fees, legal fees, and stamp duty are not included in the EMI itself but add to the upfront cost of the loan. Some lenders offer zero-processing-fee periods or cap the fee as a percentage of the loan amount. Factor these in when comparing offers from different banks.
How to reduce total interest on your home loan
Part-prepayment is the most powerful tool available to home loan borrowers in India. Under RBI guidelines, most floating-rate home loans have no prepayment penalty. Even a single lump-sum payment in the first three to five years, when the outstanding balance is highest, can knock years off the tenure and save several lakhs in interest. Many banks allow you to either reduce the EMI amount or reduce the remaining tenure after a prepayment; choosing to reduce the tenure saves more interest. Balance transfer is another option: if another lender offers a significantly lower rate (typically 0.5% or more below your current rate), it may be worth switching, though processing fees and conversion charges on the new loan affect the net saving. A home loan is usually the largest financial commitment a household makes, so even modest rate differences matter. Compare the effective annual rate (which includes fees) rather than the headline rate.
Floating vs fixed interest rates
Nearly all Indian home loans are now offered on floating rates linked to an external benchmark such as the Reserve Bank of India's repo rate (the RBI Repo-Linked Lending Rate or RLLR). When the RBI changes its policy rate, the lender is required to pass on the change within three months. This means your EMI or tenure can change during the loan period. Fixed-rate home loans are available but uncommon; they carry a premium of 1-2% over floating rates because the lender bears the rate risk. With a floating-rate loan, it helps to stress-test your budget: if the rate rises by 1% or 2% from its current level, what would the new EMI be? This calculator lets you check those scenarios by adjusting the interest rate input.
EMI per lakh for common rates and tenures
| Tenure | 7% p.a. | 8% p.a. | 8.5% p.a. | 9% p.a. | 10% p.a. |
|---|---|---|---|---|---|
| 10 years | 1,161 | 1,213 | 1,239 | 1,267 | 1,322 |
| 15 years | 898 | 956 | 985 | 1,014 | 1,075 |
| 20 years | 775 | 836 | 868 | 900 | 965 |
| 25 years | 707 | 772 | 805 | 839 | 909 |
| 30 years | 665 | 734 | 769 | 805 | 878 |
Approximate monthly EMI (in INR) for every 1 lakh (100,000) of loan amount. Multiply by your loan amount in lakhs to estimate your EMI.
Frequently asked questions
What is the EMI formula for a home loan?
The formula is EMI = P x R x (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 (tenure in years x 12). This is the standard reducing-balance formula used by all Indian banks and is mandated by RBI guidelines.
Does a longer tenure always mean I pay more?
Yes, in almost all cases. A longer tenure reduces your EMI but increases the number of interest payments you make, so the total interest cost rises substantially. For a 50-lakh loan at 8.5%, stretching from 20 to 30 years saves about 4,945 per month on EMI but costs roughly 34 lakh extra in interest. The only scenario where longer tenure does not cost more is if you deploy the monthly savings in an investment that consistently outperforms your loan interest rate after tax, which is not guaranteed.
Can I reduce my EMI after taking the loan?
Yes. You can make a part-prepayment and ask the lender to recalculate the EMI at the same tenure, which lowers the monthly payment. Alternatively, you can keep the EMI the same and reduce the tenure, which saves more interest. Most lenders allow this without penalty on floating-rate loans. Some lenders also offer a stepped EMI structure where the instalment increases by a fixed percentage each year.
Is the EMI the same every month throughout the loan?
For a fixed-EMI floating-rate loan, the EMI amount is held constant as long as the interest rate does not change. When the rate changes, either the EMI is revised or the remaining tenure is adjusted, depending on your lender's policy and your preference. For fixed-rate loans, the EMI is truly constant for the agreed period. Most Indian banks fix the EMI and adjust tenure first when rates move.
What is included in total amount payable?
Total amount payable is the sum of all your EMI payments over the entire tenure, which equals the original principal plus all interest charges. It does not include processing fees, legal fees, stamp duty, property insurance premiums, or any other charges, which are paid separately. This calculator adds an optional processing fee field so you can see the true out-of-pocket cost.
How much home loan can I get on my salary?
Most Indian banks follow a net-monthly-income (NMI) multiplier or a fixed-obligation-to-income ratio (FOIR) of 40-50%. This means your total monthly debt payments, including the new home loan EMI, should not exceed 40-50% of your net monthly income. As a rough rule, banks lend 4-5 times your annual gross income for a 20-year tenure, though the exact amount depends on your credit score, existing liabilities, employment type, and the specific lender's policy.
What is a good interest rate for a home loan in India?
As of mid-2026, floating home loan rates from major Indian banks typically range from 8.0% to 9.5% per annum for salaried borrowers with good credit scores. Rates above 9.5% are generally above market; if your lender quotes this, it is worth shopping around or negotiating. The rate also depends on your credit score, loan-to-value ratio, property type, and whether you are buying a resale or a new property.