Guide
About the Home Loan Calculator
What is a home loan EMI?
A home loan EMI is your monthly housing loan payment, which combines principal repayment and interest. Indian home loan tenures typically range from 10 to 30 years, with rates between 8% and 11% depending on lender, loan amount, applicant profile and CIBIL score. A higher down payment, shorter tenure and stronger credit profile can significantly reduce your overall interest cost over the life of the loan.
How a home loan amortization works
Each EMI is split into interest (calculated on the outstanding balance) and principal. In the first few years of a 20-year home loan, more than half of every EMI goes toward interest. As the principal balance reduces, the interest component shrinks and a larger share of every EMI starts paying down the principal. This calculator shows your exact yearly breakdown so you can see when your principal payments overtake interest.
Example
For a ₹50,00,000 home loan at 8.5% interest over 20 years, your EMI is about ₹43,391. Total payment over 20 years: ₹1.04 crore — nearly ₹54 lakh of which is pure interest. Reducing the tenure to 15 years raises the EMI to ₹49,237 but cuts total interest to roughly ₹38.6 lakh. In 2026, with India's repo rate environment, even a 25 bps lower rate can save ₹1.5–2 lakh in interest on a typical home loan.
Tax benefits on home loans in India
Under the Income Tax Act, home loan borrowers can claim deductions of up to ₹2,00,000 per year on home loan interest under Section 24(b), and up to ₹1,50,000 on principal repayment under Section 80C, for a self-occupied property. First-time buyers may also qualify for additional benefits under Section 80EE and 80EEA. Pair this calculator with our income tax calculator (coming soon) to see the post-tax cost of your home loan.