How is home loan EMI calculated?

Home loan EMI uses the reducing-balance formula: EMI = P x r x (1+r)^n / ((1+r)^n - 1). Interest is charged each month on the outstanding balance, which falls as you repay.

What home loan interest rate is typical?

Home loan rates in India are usually 8% to 9.5%, linked to the RBI repo rate. Rates vary by lender, loan amount, your credit score and whether the rate is floating or fixed.

Can I save interest by prepaying my home loan?

Yes. Prepaying reduces the outstanding principal, which lowers the interest charged in all future months. Even small, regular prepayments can cut years off the loan and save significant interest.

Are there tax benefits on a home loan?

Under the old tax regime, you can claim up to Rs 2 lakh on home loan interest under Section 24(b) and up to Rs 1.5 lakh on principal under Section 80C for a self-occupied house. The new regime does not allow these for a self-occupied property.

Home Loan EMI Calculator

Calculate your home loan EMI, total interest payable and a year-by-year amortisation schedule. Enter the loan amount, interest rate and tenure.

Home Loan Amount

₹

₹50,000₹10,00,00,000

Fifty Lakh Rupees

Interest Rate

5%30%

Loan Tenure

yrs

1 yrs30 yrs

Monthly EMI

₹43,391

Total Interest

₹54.14 L

Total Payment

₹1.04 Cr

Principal + interest

Principal vs Interest

Amortisation Schedule

Year	Principal Paid	Interest Paid	Balance
Yr 1	₹99,511	₹4.21 L	₹49.00 L
Yr 2	₹1.08 L	₹4.12 L	₹47.92 L
Yr 3	₹1.18 L	₹4.03 L	₹46.74 L
Yr 4	₹1.28 L	₹3.92 L	₹45.46 L
Yr 5	₹1.40 L	₹3.81 L	₹44.06 L
Yr 6	₹1.52 L	₹3.69 L	₹42.54 L
Yr 7	₹1.65 L	₹3.55 L	₹40.89 L
Yr 8	₹1.80 L	₹3.41 L	₹39.09 L
Yr 9	₹1.96 L	₹3.25 L	₹37.13 L
Yr 10	₹2.13 L	₹3.07 L	₹35.00 L

EMI is calculated on a reducing-balance basis. Actual EMI may vary with processing fees, insurance and the lender's exact compounding method.

What is a home loan EMI?

A home loan EMI is the fixed monthly payment you make to your bank or housing finance company toward your home loan. It covers both interest and principal repayment on the reducing-balance method. Home loans in India typically run for 15 to 30 years at rates of around 8.4% to 9.5% in 2026. A small rate difference compounds into lakhs over the life of the loan, so it pays to compare lenders and to use this calculator before signing.

How to use the Home Loan EMI Calculator

Enter the home loan amount. The principal you plan to borrow from the bank.
Enter the interest rate. Use the quoted rate from your bank - typically 8.4-9.5% in 2026.
Set the tenure in years. Common range is 15-30 years. Longer reduces EMI but balloons interest.
Review EMI and total interest. See the monthly EMI and the eye-opening total interest paid.
Inspect amortisation. See principal vs interest split for every year - the early years are interest-heavy.

Formula and method

EMI = P × r × (1+r)^n / ((1+r)^n − 1)

Standard reducing-balance EMI used by every Indian home lender. P is principal, r is monthly rate, n is total months. Most lenders also offer a fixed-rate variant - the formula is the same; only the rate behaves differently.

Why the EMI calculator matters for home loans

Find the right tenure. Tenure dominates EMI; small rate differences are secondary.
Plan against income. EMI should ideally not exceed 40% of monthly take-home.
Visualise total interest. A 30-year home loan often pays back nearly 2× the principal in interest.
Plan prepayments. Even a small yearly prepayment of 1-2 EMIs can cut tenure by years.
Compare lenders. Run the same loan at two different rates to see the lakhs of difference.

Sample home loan EMI on ₹50 lakh

Tenure	At 8.5%	At 9.0%	At 9.5%
15 years	₹49,237	₹50,713	₹52,211
20 years	₹43,391	₹44,986	₹46,607
25 years	₹40,261	₹41,960	₹43,685
30 years	₹38,446	₹40,231	₹42,046

Illustrative monthly EMI for a ₹50 lakh home loan. Use the calculator above for your exact loan parameters.