Home Loan EMI Calculator.

EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your home loan. It is calculated using the formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal loan amount, r is the monthly interest rate, and n is the total number of months.

For floating rate home loans, when the RBI changes the repo rate, your lender typically adjusts either the EMI amount or the loan tenure. Most lenders extend or shorten the tenure while keeping the EMI constant. You can use this calculator to compare your EMI at different interest rates.

A shorter tenure means higher EMIs but significantly lower total interest paid. A longer tenure lowers your monthly outgo but you pay much more in interest over time. A common approach is to take a longer tenure for flexibility but make periodic prepayments to reduce the outstanding principal faster.

Most lenders let you choose, and the choice matters. Keeping the same EMI shortens the loan and saves the most interest; lowering the EMI eases your monthly cash flow but saves less. On a ₹50 lakh, 20-year loan at 7.5%, prepaying ₹10 lakh after year 5 and keeping the EMI at ₹40,280 ends the loan 5 years 2 months early and saves about ₹15.18 L in interest. Keeping the end date instead drops the EMI to about ₹31,010 and saves about ₹6.69 L. If you do not need the cash flow, shortening the loan is almost always the better use of the money.

Interest is charged on what you still owe, and at the start you owe the whole loan. Your EMI is fixed, so it pays that interest first and only the remainder repays the loan. On a 20-year loan, only about a quarter of the first year's payments reduce what you owe. As the balance falls, interest takes a smaller share each year. This is also why prepaying in the first few years saves far more than prepaying near the end.

Under the old tax regime, yes. Section 24(b) lets you deduct the interest component of your EMI up to ₹2 lakh a year on a self-occupied home, and Section 80C covers the principal repayment within its overall ₹1.5 lakh limit. The new regime, now the default for salaried taxpayers, allows neither for a self-occupied home; only interest on a let-out property can still be set against its rental income. Compare both regimes before assuming the saving.

Banks typically approve home loans where the total EMI across all loans does not exceed 40–50% of your net monthly income. For financial comfort, personal finance advisors recommend keeping your home loan EMI below 30–35% of your take-home pay, leaving room for other expenses and savings.