Home Loan EMI Calculator

What Is a Home Loan EMI?

Each EMI has two parts: a principal component that reduces your outstanding loan balance, and an interest component charged on that balance. In the early years, a disproportionately large share goes toward interest because the outstanding balance is at its highest.

As the balance falls with each payment, more of each EMI goes toward principal.

This reducing-balance method is mandated by the Reserve Bank of India for all retail loans. On a Rs 50 lakh loan at 7.5% for 20 years, your EMI is roughly Rs 40,280. Over 240 months, you pay about Rs 96.67 lakh in total, of which approximately Rs 46.67 lakh is interest.

Home Loan EMI Formula

The EMI for a home loan is calculated using the standard reducing-balance formula:

Worked example

For a Rs 50 lakh loan at 7.5% for 20 years:

Over 240 months, total repayment is Rs 96,67,118. Of this, Rs 50 lakh is the principal and Rs 46,67,118 is the total interest cost.

Home Loan EMI Formula in Excel

Excel has three methods to calculate a home loan EMI. The PMT function is the fastest for standard EMI calculation:

To build a full amortization schedule in Excel, use IPMT(rate/12, row_number, tenure_months, -loan) for monthly interest and PPMT for monthly principal in each row. This replicates the schedule shown in the amortization table of this calculator.

Home Loan EMI Table for Common Loan Amounts

The table below shows the monthly EMI for loan amounts from Rs 18 lakh to Rs 5 crore at 7.5% per annum, the standard working rate for prime salaried borrowers as of July 2026 following the RBI's 2025 rate-cut cycle.

Each row is a loan amount; each column is a tenure option from 5 to 30 years.

To use this table: find your target loan amount in the first column, then read across to your preferred tenure. Each 0.25% change in rate adds or removes approximately Rs 15 per lakh in monthly EMI on a 20-year tenure.

A Rs 50 lakh loan at 7.25% (SBI's current rate) costs about Rs 761 less per month than at 7.5%. Use the SBI Home Loan Calculator to get figures pre-loaded with SBI's latest EBLR rate.

EMI for a Specific Loan Amount Over a Specific Tenure

The table below gives the exact monthly EMI and total interest for the specific loan amount and tenure pairings people search most often, at 7.5% p.a., so you can see the tradeoff without opening the calculator.

Notice how the interest cost, not the EMI, is what actually separates these loans. A Rs 38 lakh loan over 5 years costs Rs 7.69 lakh in interest, while a Rs 80 lakh loan over 30 years costs Rs 1.21 crore in interest, more than the principal itself.

Enter your own amount and tenure in the calculator above for an exact figure at your specific rate.

Home Loan EMI Per Lakh

EMI per lakh is the monthly payment on every Rs 1 lakh borrowed. It is the fastest way to scale a rate-and-tenure combination to any loan amount: multiply the figure below by the number of lakhs you plan to borrow.

The calculator above shows this figure automatically as "EMI per lakh borrowed" once you enter your loan details.

Example: at 7.5% for 20 years, EMI per lakh is Rs 806. For a Rs 65 lakh loan, multiply: 65 x Rs 806 = Rs 52,390 a month, close to the exact calculator figure of Rs 52,364.

EMI for Rs 1 Crore Home Loan

For a Rs 1 crore home loan at 7.5% for 20 years, the monthly EMI is Rs 80,559. Total repayment over 240 months is approximately Rs 1,93,34,237, of which Rs 93,34,237 is interest.

Extending to 30 years drops the EMI to Rs 69,921, but total interest rises to approximately Rs 1,51,71,722.

A borrower paying ICICI's 7.90% who instead qualifies for SBI's 7.25% rate saves Rs 3,985 per month on a Rs 1 crore, 20-year loan, totalling Rs 9.56 lakh over the tenure.

On a Rs 1 crore loan, the qualifying gross monthly income at 40% FOIR with no existing EMIs is approximately Rs 2.01 lakh at 7.5% for 20 years.

Before applying, check your exact loan ceiling using the Home Loan Eligibility Calculator.

EMI for Rs 1.5 Crore Home Loan

For a Rs 1.5 crore home loan at 7.5% for 20 years, the monthly EMI is Rs 1,20,839. Total repayment over 240 months is approximately Rs 2,90,01,355, of which Rs 1,40,01,355 is interest.

To qualify for this loan at 40% FOIR, you need a gross monthly income of at least Rs 3.02 lakh with no other EMIs outstanding.

The difference between a 20-year and 30-year tenure on a Rs 1.5 crore loan at 7.5% is Rs 15,957 per month in EMI. The 30-year path, however, costs approximately Rs 87.56 lakh more in total interest.

The Prepayment tab shows exactly how much you save by adding even Rs 15,000 extra per month from year 1.

What Affects Your Home Loan EMI?

Four variables determine your monthly EMI. Changing any one of them has a measurable, immediate effect on the others.

Loan amount (principal)

The loan amount equals the home price minus your down payment. Every Rs 10 lakh increase in loan at 7.5% for 20 years adds roughly Rs 8,056 to the monthly EMI. A larger down payment reduces both the loan and the EMI proportionally.

Interest rate

A 0.25% increase in rate on a Rs 50 lakh loan adds approximately Rs 761 to the monthly EMI and Rs 1.83 lakh to total interest over 20 years. When the RBI cuts the repo rate, banks linked to RLLR (Repo-Linked Lending Rate) pass through the cut within three months, as mandated.

Loan tenure

Extending tenure from 20 to 30 years on a Rs 50 lakh loan at 7.5% drops the EMI from Rs 40,280 to Rs 34,961. But the total interest jumps from Rs 46.67 lakh to Rs 75.86 lakh. Shorter tenures hurt the monthly budget but save substantially on the total cost of borrowing.

Down payment

A higher down payment directly reduces the loan principal and therefore the EMI. Increasing down payment from 10% to 20% on a Rs 75 lakh property cuts the EMI by roughly Rs 6,042 per month at 7.5% for 20 years.

Fixed Rate vs Floating Rate Home Loans

Fixed rates guarantee an unchanging EMI for the full tenure, while floating rates move with the RBI repo rate. In India, the vast majority of home loan borrowers choose floating rates.

Under RBI Governor Sanjay Malhotra, the Monetary Policy Committee cut the repo rate four times through 2025. That took the rate from 6.50% down to 5.25%, a cumulative cut of 125 basis points. The June 2026 MPC meeting held it steady at 5.25%.

Borrowers on floating rates tied to RLLR or EBLR have seen their EMIs fall in step with each cut. Anyone taking a new loan in July 2026 is better positioned on a floating rate, unless they specifically need payment certainty for cash-flow planning.

Home Loan Interest Rates in India

Rates below reflect indicative starting rates for salaried borrowers with CIBIL scores above 750 as of July 2026, after the 2025 repo rate-cut cycle took the RBI repo rate from 6.50% to 5.25%. Actual rates vary based on loan amount, property type, and credit profile.

Women co-applicants get a 0.05% concession from most major lenders including SBI and HDFC Bank. Loans above Rs 75 lakh typically carry a 0.1-0.25% premium over the base rates shown here. For SBI's EBLR-linked rate pre-filled with current figures, see the SBI Home Loan Calculator.

PMAY: Government Interest Subsidy on Home Loans

Pradhan Mantri Awas Yojana (PMAY) is the central government's flagship housing scheme, offering an interest subsidy on home loans to eligible first-time buyers.

The subsidy is disbursed to the loan account via Direct Benefit Transfer, which directly reduces the effective interest cost.

The active PMAY-Urban 2.0 Interest Subsidy Scheme, running through 2029, gives a fixed 4% interest subsidy on the first Rs 8 lakh of the loan, capped at 12 years of tenure.

The maximum benefit works out to Rs 1.8 lakh, paid in 5 equal annual instalments of Rs 36,000 credited to the loan account.

Eligibility needs annual household income up to Rs 6 lakh (EWS/LIG) or Rs 9 lakh (MIG). The loan cannot exceed Rs 25 lakh, on a property valued under Rs 35 lakh.

Apply through your lending bank or HFC at the time of disbursement; it is not claimed separately after sanction. Scheme terms are revised periodically, so confirm current caps on the official PMAY portal or with your lender before applying.

Tax Benefits on a Home Loan

Home loan borrowers under the old tax regime can claim deductions across three sections of the Income Tax Act, which together can reduce taxable income by up to Rs 5 lakh per year.

Section 80C and Section 24(b) on a self-occupied property are available only under the old tax regime. The new default tax regime disallows both for a self-occupied home.

It still allows Section 24(b) on a let-out property, where interest can be set off against rental income, capped at Rs 2 lakh per year.

Section 80EEA is effectively obsolete for new home loans taken in 2026. It only applies to legacy borrowers whose loan was sanctioned between April 1, 2019 and March 31, 2022.

Run the Income Tax Calculator with and without the Section 24(b) deduction to see exactly how your net liability changes before choosing a regime.

How Much Home Loan Can You Get?

Most Indian banks calculate home loan eligibility using FOIR (Fixed Obligation to Income Ratio), capping total monthly loan obligations at 40-50% of gross income. The Eligibility tab above computes this automatically.

The formula: Maximum eligible EMI = (Gross monthly income x 0.40) minus all existing EMIs. This figure is then reverse-calculated using the EMI formula to arrive at the maximum loan principal.

Other factors that affect eligibility: CIBIL score (below 700 typically leads to rejection), age (affects maximum tenure), employer category (PSU/MNC borrowers get more favourable treatment), and property valuation by the lender's empanelled valuer.

For a more detailed breakdown that factors in CIBIL score band and employment type, use the dedicated Home Loan Eligibility Calculator.

Costs of Buying a Home Beyond the EMI

Unlike a US mortgage, an Indian home loan EMI does not bundle property tax or insurance into the monthly payment. Those costs, along with several one-time charges at purchase, are billed separately and need their own line in your budget.

On a Rs 75 lakh property, stamp duty and registration alone can add Rs 3 lakh to Rs 6.75 lakh upfront, on top of your down payment. Factor these costs into your savings plan before fixing a target home price in the calculator above.

How to Reduce Your Home Loan EMI

There are five proven strategies for reducing monthly EMI burden without increasing the loan term unnecessarily.

1. Increase the down payment: Every Rs 5 lakh extra upfront cuts the loan by the same amount. On a Rs 50 lakh loan at 7.5% for 20 years, an extra Rs 5 lakh down payment saves roughly Rs 4,028 per month in EMI.
2. Balance transfer to a lower rate: Moving from 9% to 7.5% on a Rs 50 lakh outstanding balance with 15 years remaining saves approximately Rs 4,363 per month in EMI. Use the Balance Transfer Savings Calculator to quantify the net saving after processing fees and stamp duty.
3. Make lump-sum prepayments: A one-time prepayment of Rs 2 lakh in year 3 of a Rs 50 lakh loan at 7.5% can cut total interest by over Rs 5.2 lakh and shorten the tenure by approximately 17 months.
4. Add a co-applicant: Adding a spouse or parent with income not only increases eligibility but also qualifies for a 0.05% women co-applicant rate concession from most lenders.
5. Maintain a high CIBIL score: Borrowers with CIBIL scores above 800 often get rates 0.15-0.25% lower than those with scores between 700 and 750. On a 20-year loan, 0.25% fewer in rate saves approximately Rs 1.83 lakh in total interest.

Any surplus freed up by a lower EMI or a successful prepayment is best put to work in a SIP rather than left idle in a savings account.

Even Rs 5,000 per month invested in an equity fund at 12% CAGR over 15 years grows to approximately Rs 25 lakh, potentially more than the interest saved by prepaying the same amount.

What Is a Home Loan Amortization Schedule?

A home loan amortization schedule is a complete year-by-year or month-by-month breakdown of every payment, showing how much goes toward principal and how much toward interest, and the outstanding balance at the end of each period.

In early years, the interest component dominates. For a 20-year loan at 7.5%, roughly 78% of your first EMI is interest. By year 10, the split narrows to close to 50-50, and by year 18, over 85% goes toward principal.

The bar chart and table in the amortization section of this calculator show this progression for your exact inputs.

The schedule is particularly useful for deciding when to prepay. Making a large extra payment in years 3-7, when the interest component is still substantial, produces greater savings than the same payment made in year 18.

A Brief History of Home Loans in India

Before the late 1970s, formal home loan lending barely existed in India. Most home purchases were funded through personal savings, employer housing advances, or informal family lending, since no dedicated retail mortgage market had developed.

HDFC (Housing Development Finance Corporation), founded in 1977 by H.T. Parekh, is widely credited as India's first specialised housing finance company and the pioneer of the retail home loan model still used today.

The National Housing Bank (NHB) was set up in 1988 as an apex refinancing institution to regulate and expand housing finance across the country. Regulatory oversight of housing finance companies moved from NHB to the RBI in 2019.

The pricing benchmark for floating-rate loans has changed several times. The Benchmark Prime Lending Rate (BPLR) regime gave way to the Base Rate system in 2010, which was replaced by MCLR in April 2016.

From October 2019, the RBI mandated that all new floating-rate retail loans link to an external benchmark like the repo rate, so rate cuts pass through faster.

How to Use This Home Loan EMI Calculator

1. EMI tab: Enter home price, down payment, interest rate and tenure using the sliders. Use the year presets (5Y, 10Y, 15Y, 20Y, 30Y) to quickly compare how tenure affects your EMI. Click the amortization toggle to see the year-by-year bar chart and breakdown table.
2. Prepayment tab: Set an extra monthly payment to see how much interest you save and how many months you cut from your loan. The calculation automatically uses the same rate and tenure from the EMI tab.
3. Eligibility tab: Enter your gross monthly income and any existing EMI obligations. The calculator shows your maximum eligible loan at 40% FOIR, the resulting maximum property value at 20% down payment, and the suggested down payment.
4. Advanced settings: Click "More settings" inside the EMI tab to add property tax and home insurance as annual amounts. These are included in a total monthly housing cost figure alongside your EMI.

State of the Indian Home Loan Market

A quick reference on where rates, refinancing, and lender types stand heading into the second half of 2026, drawn from figures already covered above.

Frequently Asked Questions