India Home Loan EMI Calculator
Calculate your monthly home loan EMI with interest rate and tenure. See total interest, principal vs interest split and year-by-year amortisation schedule.
Loan Details
Loan Summary
Monthly EMI
₹43,391
Principal Amount
₹50,00,000
Total Interest
₹54,13,879
Total Amount Payable
₹1,04,13,879
Potential Tax Benefit (per year)
₹17,500
Sec 24 (interest): ₹2,00,000
Sec 80C (principal): ₹1,50,000
Principal vs Interest Split
Principal
48.0%
Interest
52.0%
Year-by-Year Amortization
| Year | Principal (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | ₹99,511 | ₹4,21,182 | ₹49,00,489 |
| 2 | ₹1,08,307 | ₹4,12,387 | ₹47,92,181 |
| 3 | ₹1,17,881 | ₹4,02,813 | ₹46,74,300 |
| 4 | ₹1,28,300 | ₹3,92,394 | ₹45,46,000 |
| 5 | ₹1,39,641 | ₹3,81,053 | ₹44,06,359 |
| 6 | ₹1,51,984 | ₹3,68,710 | ₹42,54,375 |
| 7 | ₹1,65,418 | ₹3,55,276 | ₹40,88,957 |
| 8 | ₹1,80,039 | ₹3,40,655 | ₹39,08,918 |
| 9 | ₹1,95,953 | ₹3,24,741 | ₹37,12,965 |
| 10 | ₹2,13,274 | ₹3,07,420 | ₹34,99,691 |
| 11 | ₹2,32,125 | ₹2,88,569 | ₹32,67,566 |
| 12 | ₹2,52,643 | ₹2,68,051 | ₹30,14,923 |
| 13 | ₹2,74,974 | ₹2,45,720 | ₹27,39,949 |
| 14 | ₹2,99,279 | ₹2,21,415 | ₹24,40,670 |
| 15 | ₹3,25,733 | ₹1,94,961 | ₹21,14,937 |
| 16 | ₹3,54,525 | ₹1,66,169 | ₹17,60,412 |
| 17 | ₹3,85,862 | ₹1,34,832 | ₹13,74,550 |
| 18 | ₹4,19,968 | ₹1,00,726 | ₹9,54,582 |
| 19 | ₹4,57,090 | ₹63,604 | ₹4,97,492 |
| 20 | ₹4,97,492 | ₹23,202 | ₹0 |
Tax Benefits on Home Loans
- Section 24: Home loan interest up to ₹2,00,000 per year (only for self-occupied property)
- Section 80C: Principal repayment up to ₹1,50,000 per year (across all 80C investments)
- These benefits are available in both old and new tax regimes
- Self-occupied property gets full interest relief; let-out property has no limit on interest deduction
Disclaimer
This calculator provides estimates based on the information entered. Actual EMI may vary based on processing fees, insurance, exact interest rates, and payment terms from your lender. Always verify with your bank before making financial decisions.
How EMI Is Calculated
EMI (Equated Monthly Instalment) = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly interest rate (annual rate / 12 / 100), n is number of months. A ₹50 lakh loan at 8.5% over 20 years (240 months): r = 0.00708, EMI = ₹43,391. Total payment over 20 years = ₹1.04 crore, of which ₹54 lakh is interest.
The proportion of principal vs interest in each EMI shifts over time. Early EMIs are mostly interest (about 70% interest, 30% principal in year 1). Late EMIs are mostly principal. By year 10 of a 20-year loan, principal portion exceeds interest. This is why prepayments early in the loan save dramatically more interest than prepayments late.
Eligibility and Loan-to-Value
Banks typically lend up to 80-90% of property value (LTV ratio), with the rest as down payment. Loan eligibility based on income: typically 50-60% of monthly take-home pay can go to EMI. So someone earning ₹1 lakh/month take-home can EMI up to ₹50,000-60,000, supporting roughly ₹65-80 lakh loan at current rates over 20 years.
Joint applicants (spouse, parent, sibling) can pool incomes for higher eligibility. Each applicant's CIBIL score (credit score) is checked - 750+ for best rates, below 650 may face rejection. Stable employment (2+ years), business vintage (3+ years for self-employed), and income tax returns are standard documentation.
Tax Benefits Under Old Regime
Section 24: deduction up to ₹2 lakh per year on home loan interest for self-occupied property (no limit for let-out property). Section 80C: principal repayment up to ₹1.5 lakh per year (combined with other 80C investments). Section 80EE/80EEA: additional deductions for first-time buyers in specific circumstances and price ranges.
Combined annual tax saving for a ₹50 lakh loan in old regime can be ₹50,000-1 lakh+/year for someone in 30% bracket. New regime allows NO home loan deductions on self-occupied property. For let-out property, interest deduction continues in new regime. The tax math heavily influences regime choice for property owners.
Floating vs Fixed Rate, Prepayment Strategy
Floating rate: most common, links to RLLR (Repo-Linked Lending Rate) plus spread. Reset usually every 3-6 months when RBI changes repo rate. Fixed rate: locked for first 3-5 years typically, then converts to floating. Floating usually wins long-term but exposes you to rate hikes.
Prepayment can save large interest over loan life. ₹5 lakh prepayment in year 3 of a 20-year ₹50 lakh loan saves about ₹15-18 lakh in interest. Most banks allow prepayment without penalty on floating-rate loans. Fixed-rate loans may charge 1-2% prepayment penalty. Prioritise prepayment over investments earning lower than your loan rate. Use the [India SIP Calculator](/india-sip-calculator) to compare prepayment vs investment outcomes.
Frequently Asked Questions
What's MCLR vs RLLR?
MCLR (Marginal Cost of Funds-Based Lending Rate): older system where banks set rates with reset every 6-12 months. RLLR (Repo-Linked Lending Rate): newer system mandated for retail loans since October 2019, links directly to RBI repo rate with quicker pass-through. New loans are RLLR; old MCLR loans can be converted (banks usually charge a fee).
Can I get a home loan as an NRI?
Yes - all major banks offer NRI home loans for property purchase in India. Documentation includes overseas income proof, NRO/NRE bank statements, employment proof. Rates and tenure usually similar to resident loans. Tax benefits depend on residency status at time of claiming - non-residents claiming Indian deductions face stricter scrutiny.
What's PMAY?
Pradhan Mantri Awas Yojana: government interest subsidy scheme for first-time buyers. Provides 3-6.5% interest subsidy on home loans up to certain amounts based on income brackets (LIG/MIG-I/MIG-II). Scheme has been extended multiple times with revised eligibility - check current terms before applying.
Should I take longer or shorter loan tenure?
Shorter saves interest dramatically but increases EMI. ₹50L at 8.5% over 20 years has ₹43,391 EMI and ₹54L total interest. Same loan over 30 years has ₹38,446 EMI and ₹89L total interest - ₹35L extra interest for ₹5,000/month lower EMI. If you can afford the higher EMI, shorter is mathematically much better.
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