Home Loan Calculator India (2026)

Q: What is EMI in home loan?

EMI stands for Equated Monthly Installment. It is a fixed amount paid by a borrower to a lender at a specified date each month to repay both principal and interest.

Q: Is prepayment allowed in home loans?

Yes, as per RBI guidelines, most banks in India do not charge any prepayment penalty on floating-rate home loans for individual borrowers.

Loan Details

Property Value / Loan (₹)

Down Payment (Optional ₹)

Interest Rate (%)

Loan Tenure (Years)

Actual Loan Amount

₹0

Total Interest

₹0

Monthly EMI

₹0

Total Payment (Principal + Int) ₹0

Does not include bank processing fees and documentation charges.

Principal Amount Total Interest

P: ₹0

I: ₹0

Yearly Amortization Schedule

Year	Principal Paid	Interest Paid	Balance

What is a Home Loan?

A Home Loan (or housing loan) is a sum of money borrowed from a financial institution to purchase, construct, or renovate a residential property. The property itself serves as collateral for the loan.

In India, home loans are popular not just for property ownership but also for the significant tax benefits they offer. Before committing, it is vital to check your Loan Eligibility to see what amount you qualify for.

Tax Benefits of Home Loan (Old Tax Regime)

Home loans offer substantial tax savings in India, but these are restricted to the Old Tax Regime. If you opt for the New Tax Regime, most of these deductions are scrapped.

1 Section 24(b): Interest Paid

You can claim a deduction of up to ₹2,00,000 per year on the interest portion of your Home Loan EMI. This applies to self-occupied properties. For let-out properties, the interest deduction can be claimed in full against rental income, though loss set-off against other heads is limited to ₹2 Lakh.

2 Section 80C: Principal Repaid

The principal portion of your EMI is eligible for deduction under Section 80C, up to a maximum limit of ₹1,50,000. This limit is shared with other investments like PPF, LIC, and ELSS. Additionally, stamp duty and registration charges can also be claimed under this section once.

Important Notice: New Tax Regime (2025-26)

Under the New Tax Regime, the deduction for home loan interest on self-occupied property (Section 24b) and the principal repayment deduction (Section 80C) are not available. Taxpayers must evaluate both regimes using an Income Tax Calculator before deciding to switch.

How Home Loan EMI is Calculated

The calculation of Home Loan EMI follows the reducing balance method. Our calculator uses the standard mathematical formula:

EMI = [P × r × (1+r)^n] / [(1+r)^n − 1]

P: Net Loan Amount (Property Value - Down Payment)
r: Monthly interest rate (Annual rate / 12 / 100)
n: Loan tenure in months

Factors Affecting Your Home Loan EMI

Interest Rate

A higher rate directly increases your EMI. Even a 0.5% difference can cost lakhs over a 20-year period.

Loan Tenure

Longer tenures reduce the EMI but significantly increase the total interest paid. Plan your tenure using our EMI Tool.

Down Payment

Paying more upfront reduces the principal amount, lowering both your EMI and total interest burden.

Credit Score

A high CIBIL score (750+) often helps you negotiate lower interest rates with top banks.

Example Home Loan Calculation

Suppose you are buying a home worth ₹50,00,000 with a 20-year tenure at an interest rate of 8.5%. If you make zero down payment:

💰 Monthly EMI: ₹43,391
📉 Total Interest: ₹54,13,879
🏦 Total Repayment: ₹1,04,13,879

Notice that the total interest is actually more than the original loan amount. This highlights the importance of accounting for Inflation and the benefit of periodic prepayments to reduce total cost.

Frequently Asked Questions

What is EMI in home loan?

EMI is the fixed monthly payment that covers a part of the principal and the interest on the remaining loan amount.

How much home loan can I get?

It depends on your income, age, and existing debts. Usually, banks lend 50-60% of your net monthly income as EMI. Check our Loan Eligibility Tool for details.

What salary is required for ₹50 lakh home loan?

For a ₹50L loan (8.5%, 20Y), the EMI is ~₹43,400. To qualify, a net monthly salary of approx ₹85,000 to ₹1,00,000 is required.

Should I choose longer tenure or higher EMI?

Choose the highest EMI you can comfortably afford. Shortening the tenure even by 5 years can save you lakhs in total interest.

How much down payment is required?

Typically, banks finance 80-90% of the property value (LTV ratio), so you need 10-20% as a down payment from your own mutual fund savings.

Is prepayment allowed in home loans?

Yes. Most banks allow zero-penalty prepayments on floating-rate loans. This is the most efficient way to reduce your overall loan cost.

Last Updated: March 2026