Home Loan EMI
About the Home Loan EMI
A home loan EMI is the fixed monthly payment that repays your housing loan over its tenure, combining interest and principal. Because home loans run for long tenures, even a small rate difference changes the total interest substantially.
This calculator shows the EMI and the total interest for your loan amount, rate and tenure, so you can compare options before borrowing.
Frequently asked questions
How is home loan EMI calculated?
With the reducing-balance formula: EMI = P × i × (1 + i)ⁿ ÷ [(1 + i)ⁿ − 1], where P is the loan amount, i is the monthly rate (annual rate ÷ 1200) and n is the tenure in months. Interest is charged only on the outstanding balance.
What tax benefits does a home loan give?
Under the old regime you can claim up to ₹1.5 lakh a year of principal repayment under Section 80C and up to ₹2 lakh of interest under Section 24(b) for a self-occupied home. The new regime largely does not allow these, so weigh that in your regime choice.
Should I prepay my home loan or invest instead?
It depends on your loan rate versus what you could earn elsewhere, and your need for certainty. Prepaying saves guaranteed interest and clears debt sooner; investing may earn more but carries risk. This calculator shows the interest a prepayment would save.
Does a longer tenure make a home loan cheaper?
No. A longer tenure lowers the monthly EMI but increases total interest, because you owe for more months. A shorter tenure costs more each month but far less overall.
What is the difference between fixed and floating home loan rates?
A fixed rate keeps your EMI constant; a floating rate is linked to a benchmark such as the repo rate, so your EMI or tenure changes when rates move. Most Indian home loans are floating.