Home Loan Calculator

Home loan EMI is calculated using the reducing-balance formula: EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]. P is the loan principal (property price minus down payment), R is the monthly interest rate (annual rate divided by 12 divided by 100), and N is the tenure in months. All banks in India use this method. The EMI stays fixed throughout, but the interest portion reduces each month as the balance falls.

For a Rs 30 lakh home loan at 8.5% p.a. for 20 years, the EMI is approximately Rs 26,034 per month. At the current SBI rate of 8.25%, the EMI is approximately Rs 25,566 per month. Over 20 years at 8.5%, you pay approximately Rs 32.5 lakh as total interest on the Rs 30 lakh principal.

For a Rs 50 lakh home loan at 8.5% p.a. for 20 years, the EMI is approximately Rs 43,391 per month. Over 20 years, total interest paid is approximately Rs 54 lakh, making the total repayment Rs 1.04 crore.

On a Rs 50,000 monthly salary with no existing EMIs, most banks will approve a home loan of approximately Rs 25 to 29 lakh. Banks cap total EMI at 50% of gross income (FOIR = Rs 25,000). At 8.5% for 20 years, Rs 25,000 monthly EMI supports a loan of approximately Rs 28.8 lakh.

On a Rs 1 lakh per month salary with no existing EMIs, most banks will approve a home loan of approximately Rs 55 to 60 lakh. Using a 50% FOIR, the maximum EMI is Rs 50,000, which at 8.5% for 20 years corresponds to a loan of approximately Rs 57.6 lakh.

Most major Indian banks require a minimum CIBIL score of 700 to 750 for home loan approval. Scores of 750 or above get the best available rates. Scores between 650 and 699 may get approval at a higher rate. Scores below 650 are typically declined by mainstream lenders.

Per RBI guidelines: for loans up to Rs 30 lakh, banks can fund up to 90% (minimum 10% down payment). For loans between Rs 30 and 75 lakh, up to 80% (minimum 20% down). For loans above Rs 75 lakh, up to 75% (minimum 25% down). A higher down payment reduces your EMI and total interest.

A 20-year tenure is better if you can afford the higher EMI, because total interest paid is significantly lower. On a Rs 30 lakh loan at 8.5%: 20-year EMI is Rs 26,034 with Rs 32.5 lakh total interest, vs 30-year EMI of Rs 23,064 with Rs 53 lakh total interest. The 30-year option costs Rs 20.5 lakh more in total interest.

Yes. You can reduce your EMI by making a partial prepayment on the principal (RBI mandates zero prepayment charges on floating-rate bank loans), negotiating a rate reduction when the RBI cuts the repo rate, doing a balance transfer to a lender with a lower rate, or increasing your tenure if the lender allows it.

FOIR (Fixed Obligation to Income Ratio) is the proportion of your gross monthly income allocated to all EMI payments. Most Indian banks cap FOIR at 50% for home loans. If you have existing EMIs (car loan, personal loan), they count toward FOIR and directly reduce the home loan amount you qualify for.

Under the old tax regime: Section 80C allows up to Rs 1.5 lakh deduction per year on principal repayment. Section 24(b) allows up to Rs 2 lakh per year on interest for self-occupied property. The new tax regime (default from FY2024) does not allow these deductions. Consult a CA to determine which regime is optimal for your income.

SBI home loan interest rates start at 8.25% p.a. for salaried borrowers with CIBIL above 750, as of June 2026. SBI rates are linked to the EBLR (External Benchmark Lending Rate = RBI repo rate + spread). Women borrowers receive a 0.05% concession on the applicable rate.

A higher down payment reduces your loan amount and EMI proportionally. For a Rs 50 lakh property at 8.5% for 20 years: 10% down (Rs 5L) gives a loan of Rs 45L with EMI of Rs 39,052. 20% down (Rs 10L) gives a loan of Rs 40L with EMI of Rs 34,713, saving Rs 4,339 every month for 20 years.

In India, a home loan is money borrowed to purchase, construct, or renovate a residential property, with that property as collateral. A mortgage loan (or LAP, Loan Against Property) is a loan against an already-owned property. This calculator is for home purchase loans.

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