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Enter Home Loan Details
Your Home Loan Summary
Enter your loan details to see EMI and total interest
With your prepayment
Figures are indicative. Your bank may add processing fees, insurance and a floating rate that changes over time.
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Home Loan EMI Formula
Every bank in India uses the same reducing-balance formula for home loan EMI. Interest is charged only on the outstanding principal, which falls a little every month.
Worked example: Rs 30 lakh at 8.5% for 20 years
| Item | Value |
|---|---|
| Loan amount | ₹30,00,000 |
| Interest rate | 8.5% per annum |
| Tenure | 20 years (240 months) |
| Monthly EMI | ₹26,035 |
| Total interest paid | ₹32,48,327 |
| Total amount repaid | ₹62,48,327 |
Over 20 years you repay more than double the amount borrowed. That is why even a small reduction in rate or tenure makes a large difference.
How Tenure Changes Your EMI and Interest
A longer tenure lowers the monthly EMI but raises the total interest sharply. The table below uses the same ₹30 lakh loan at 8.5%.
| Tenure | Monthly EMI | Total Interest | Total Repaid |
|---|---|---|---|
| 10 years | ₹37,196 | ₹14,63,485 | ₹44,63,485 |
| 15 years | ₹29,542 | ₹23,17,594 | ₹53,17,594 |
| 20 years | ₹26,035 | ₹32,48,327 | ₹62,48,327 |
| 25 years | ₹24,157 | ₹42,47,044 | ₹72,47,044 |
| 30 years | ₹23,067 | ₹53,04,266 | ₹83,04,266 |
Stretching from 20 years to 30 years saves about ₹2,967 a month but costs roughly ₹20.6 lakh extra in interest.
Why prepayment works best early
In the first years of a home loan, most of your EMI goes to interest, not principal. A lump sum paid early therefore wipes out a large amount of future interest. On a ₹30 lakh loan at 8.5% for 20 years, prepaying ₹5 lakh after the first year cuts the remaining tenure from 19 years to roughly 12 years 11 months. Use the prepayment field above to test your own numbers.
Down Payment and LTV Limits in India
Banks do not fund the entire property price. The loan-to-value ratio caps how much you can borrow, and the balance is your down payment.
| Property Value | Maximum LTV | Minimum Down Payment |
|---|---|---|
| Up to ₹30 lakh | 90% | 10% |
| ₹30 lakh to ₹75 lakh | 80% | 20% |
| Above ₹75 lakh | 75% | 25% |
Remember to budget for stamp duty, registration, and processing fees on top of the down payment. These are not covered by the loan.
Note: Interest rates, LTV caps and tax rules change from time to time and vary between lenders. Treat these results as planning estimates and confirm the final figures with your bank before committing.
Frequently Asked Questions
Related Calculators
Buying a vehicle too? The Car Loan EMI Calculator compares flat and reducing rates. For personal or education loans, use the general EMI Loan Calculator.