Home Loan EMI Calculator
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Housing loan EMI calculator on the reducing-balance method: your EMI, total interest, what a prepayment saves, and what a rate change does to the EMI or tenure.
Educational estimate only. Not a lending decision. Your numbers stay in this browser.
Results
How to read this: the verdict describes how much room your numbers leave, not a decision or an offer. Change any input to see how much the result moves.
Assumptions and formula
The reducing-balance EMI every Indian lender uses: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), with r the annual rate divided by twelve and n the number of months. Each month’s interest is charged on the balance outstanding, so early EMIs are mostly interest and later ones mostly principal.
A prepayment is applied after that month’s EMI. By default it shortens the tenure and the EMI is unchanged, which is how banks apply it unless asked; the alternative keeps the tenure and re-solves the EMI at the lower balance. A rate reset applies from the month you enter; by default the EMI is held and the tenure absorbs the change, and if a held EMI would no longer cover the interest the EMI is re-set as a bank would. The baseline lines show the same loan with no prepayment and no rate change, so the saving is measured against it.
Worked example
₹50 lakh at 8.5% for 20 years is ₹43,391 a month; ₹54.1 lakh of interest over 240 months. A ₹5 lakh prepayment in month 24 that shortens the tenure ends the loan 45 months early and saves ₹14.6 lakh of interest. The same ₹5 lakh used to cut the EMI instead lowers it to ₹38,864 and saves ₹4.8 lakh.
Frequently asked questions
How is a home loan EMI calculated?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan, r the monthly rate (annual rate ÷ 12) and n the number of months. On ₹50 lakh at 8.5% for 20 years, r is 0.7083% and n is 240, giving ₹43,391 a month. Early EMIs are mostly interest — in month one ₹35,417 of that ₹43,391 is interest — and the split reverses over the tenure.
Should a prepayment reduce the EMI or the tenure?
Reducing the tenure saves far more interest, because every month removed from the end of a loan was almost all interest. On the ₹50 lakh example, a ₹5 lakh prepayment in month 24 that shortens the tenure saves about ₹14.6 lakh of interest and 45 months; the same prepayment used to cut the EMI (to about ₹38,864) saves about ₹4.8 lakh. Banks default to tenure reduction; ask for the other only if the monthly outgo is the problem.
What happens to my EMI when the interest rate changes?
On a floating-rate loan the bank normally keeps your EMI the same and changes the tenure, so a rate rise means more months, not a bigger payment — until the tenure would run past your retirement age, when the EMI is raised instead. This calculator applies a revised rate from the month you enter and lets you choose which the lender did.
Are there charges for prepaying a home loan?
Not on a floating-rate home loan to an individual: the RBI prohibits prepayment penalties on those. Fixed-rate loans and loans to companies can carry a charge, typically 2–4% of the amount prepaid. Check the sanction letter; the calculator does not deduct any charge.
Does this include the tax benefit on a home loan?
No. Under the old regime, interest up to ₹2 lakh a year on a self-occupied house is deductible under section 24(b) and principal up to ₹1.5 lakh under section 80C; the new regime allows neither for a self-occupied house. The yearly table gives you the interest and principal figures those sections need.
Is this also a home loan eligibility calculator?
In reverse, yes. A home loan calculator normally starts from the loan and gives the EMI; a home loan eligibility calculator starts from your income and gives the loan. Banks usually cap the EMI at about 40% to 50% of net monthly income, so enter an EMI at that level with your rate and tenure and the loan amount that produces it is roughly what you would be offered. The home loan interest calculator side of the page then shows what that loan costs over the full tenure, which is the figure a home loan prepayment calculator sets against the saving from paying early.