How is home loan EMI calculated?

With the reducing-balance formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the sanctioned amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. This page recalculates the moment you change an input.

How does the interest rate affect my home loan EMI?

A higher rate raises both the EMI and the total interest. Because a housing loan runs for 15–30 years, even a 0.25% difference in rate can change total interest by a large amount — try two rates on this calculator to see the gap.

Does a longer tenure make a home loan cheaper?

No. A longer tenure lowers the monthly EMI but increases total interest, because the balance stays outstanding for more months. A shorter tenure does the opposite.

Why is so much of my early EMI interest?

Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest portion of each fixed EMI shrinks and the principal portion grows.

Will the calculated EMI match my lender's figure?

It should be very close for the same amount, rate and tenure. Small differences come from the disbursement date, the day-count the lender uses, pre-EMI interest during construction and charges added to the loan.

Can I use this calculator for a 0% interest loan?

Yes. At 0% the EMI is simply the loan amount divided by the number of instalments, and total interest is zero.

Are stamp duty and registration included?

No. Those are paid separately and are normally not funded by the home loan, so add them to your own upfront cost.

Home Loan Calculator

Calculate your home loan EMI, total interest and total amount payable, with a year-wise amortisation schedule.

Under 30 seconds

Updated 26 Aug 2026

12,450people used this

Monthly EMI

₹34,713

Fixed instalment for 240 months at 8.5% p.a.

Total interest

₹43,31,103

52% of everything you repay.

Principal amount

₹40,00,000

The amount you borrow.

Total amount payable

₹83,31,103

Principal plus interest over the full tenure.

A home loan calculator works out the monthly EMI on a housing loan from the loan amount, the annual interest rate and the tenure, using the reducing-balance method. It also shows total interest, total amount payable and how the outstanding balance falls year by year. Actual lender terms, fees and floating-rate resets can change the figures.

Visual breakdown

A visual view of your calculation.

Interactive charts arrive here soon.

Repayment schedule

Year-by-year split of principal and interest on a reducing balance.

Year-by-year split of principal and interest on a reducing balance.
Year	Opening balance	Principal paid	Interest paid	Closing balance
1	₹40,00,000	₹79,609	₹3,36,946	₹39,20,391
2	₹39,20,391	₹86,646	₹3,29,909	₹38,33,745
3	₹38,33,745	₹94,305	₹3,22,251	₹37,39,440
4	₹37,39,440	₹1,02,640	₹3,13,915	₹36,36,800
5	₹36,36,800	₹1,11,713	₹3,04,842	₹35,25,087
6	₹35,25,087	₹1,21,587	₹2,94,968	₹34,03,500
7	₹34,03,500	₹1,32,334	₹2,84,221	₹32,71,166
8	₹32,71,166	₹1,44,031	₹2,72,524	₹31,27,134
9	₹31,27,134	₹1,56,763	₹2,59,793	₹29,70,372
10	₹29,70,372	₹1,70,619	₹2,45,936	₹27,99,753
11	₹27,99,753	₹1,85,700	₹2,30,855	₹26,14,053
12	₹26,14,053	₹2,02,114	₹2,14,441	₹24,11,939
13	₹24,11,939	₹2,19,979	₹1,96,576	₹21,91,959
14	₹21,91,959	₹2,39,424	₹1,77,132	₹19,52,536
15	₹19,52,536	₹2,60,586	₹1,55,969	₹16,91,949
16	₹16,91,949	₹2,83,620	₹1,32,935	₹14,08,329
17	₹14,08,329	₹3,08,689	₹1,07,866	₹10,99,640
18	₹10,99,640	₹3,35,975	₹80,581	₹7,63,665
19	₹7,63,665	₹3,65,672	₹50,883	₹3,97,994
20	₹3,97,994	₹3,97,994	₹18,561	₹0

Smart Insights

Generated from the numbers you entered — no guesswork.

A ₹40,00,000 home loan at 8.5% for 20 years costs ₹43,31,103 in interest.
Interest is 52% of your total repayment of ₹83,31,103, or ₹108 for every ₹100 borrowed.
Repaying in 19 years instead raises the EMI to ₹35,418 but saves about ₹2,55,839 of interest.
Lenders usually want all your EMIs to stay under about 40–50% of net monthly income; this EMI of ₹34,713 is one input into that check.
Actual lender terms differ — processing fees, insurance and documentation charges are not included in this estimate.

How does the Home Loan Calculator work?

Each step the calculator runs, in plain language.

1
Work out the amount you actually borrow
The loan is the property cost minus your down payment. Registration, stamp duty and interior costs are usually paid from your own funds.
2
Convert the annual rate into a monthly rate
The advertised annual rate is divided by 12 and by 100, so 8.5% p.a. becomes 0.0070833 per month.
3
Apply the reducing-balance EMI formula
The EMI is fixed, but interest is charged only on the outstanding balance, so early instalments are interest-heavy and later ones repay far more principal.
4
Read the amortisation schedule
The table shows opening balance, principal repaid, interest paid and closing balance for each year of the loan.

Home Loan Calculator formula

The exact maths behind every number on this page.

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P: Principal — the sanctioned home loan amount
r: Monthly interest rate (annual rate ÷ 12 ÷ 100)
n: Total monthly instalments (tenure in years × 12)

At 0% interest the formula is undefined, so the EMI falls back to its mathematical limit, P ÷ n.

Home Loan Calculator calculation example

A ₹40,00,000 home loan at 8.5% p.a. for 20 years.

1Principal (P)₹40,00,000
2Monthly rate (r)8.5 ÷ 12 ÷ 100 = 0.0070833
3Instalments (n)20 × 12 = 240
4EMI₹34,713 (approx.)

You repay about ₹83.3 lakh in total, of which roughly ₹43.3 lakh is interest — more than the amount borrowed.

Important assumptions

What this calculation includes, and what it leaves out.

The interest rate you enter stays the same for the whole tenure. Most Indian home loans are floating-rate and will re-price when the benchmark resets.
Interest is charged on the reducing monthly balance, the convention Indian banks and housing finance companies use.
Only principal and interest are included. Processing fees, legal and valuation charges, property insurance, stamp duty, GST on charges and prepayment penalties are excluded.
The schedule is grouped by year from the first instalment, not by financial year, and pre-EMI interest during construction is not modelled.
Tax deductions on home loan principal and interest are not applied here.

Benefits

Why people use this calculator before signing a loan.

Size the loan to your income
See the EMI before you apply, so you can adjust the amount or tenure.
See the real cost of a long tenure
A 30-year loan feels affordable monthly but can cost far more interest than 20 years.
Plan prepayments
Compare tenures side by side to estimate the interest a prepayment could remove.

Financial tips

Practical guidance to act on your result.

A larger down payment reduces the sanctioned amount and cuts total interest directly.
On a floating-rate home loan, part-prepaying in the early years removes the most interest.
Compare offers on total interest payable, not just the headline rate.
Check the reset frequency on a benchmark-linked loan so you know when the EMI can change.

Frequently asked questions

Short, direct answers to the questions we hear most.

Guides that explain how to use this calculation in a real decision.

Loans • 6 min read

EMI or prepayment: which saves you more interest?

A practical framework for deciding between a longer tenure, a higher EMI and putting spare cash into prepayment.

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Loans • 7 min read

Fixed vs floating rates in a changing rate cycle

How repo-linked lending rates reset, and when paying a premium for a fixed rate is actually worth it.

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Disclaimer

CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.

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