Home Loan Calculator (EMI, Total Interest & Tax Benefits)
Calculate monthly EMI payments, total interest burden, down payment splits, and Section 24(b) & 80C tax deductions on Indian housing loans.
Principal ₹60,00,000 at 8.5% for 20 years
*Computed using monthly reducing balance amortization. Actual rates depend on credit score (CIBIL 750+).
Important Educational Disclaimer for Calculator Results:
Calculations are estimates based on your entered inputs and selected return or inflation assumptions. Results are illustrative, hypothetical, and not guaranteed. Actual market returns, interest rates, tax liabilities, and inflation rates will vary and may materially alter your final outcome. This calculator does not constitute financial, investment, or tax advice.
What will your Home Loan actually cost you over time?
For a property worth ₹75,00,000 with a ₹15,00,000 down payment, you will take a loan of ₹60,00,000. At 8.5% p.a. over 20 years, your monthly EMI is ₹52,069. Over the full tenure, you pay ₹64,96,655 in total interest, making the total lifetime cost of the loan ₹1,24,96,655.
- Monthly EMI Burden: ₹52,069/month.
- Interest-to-Principal Ratio: Total interest equals 108.3% of the original loan borrowed!
- Tax Deductions (Old Regime): You can claim up to ₹2,00,000/year under Section 24(b) for interest paid, and up to ₹1,50,000/year under Section 80C for principal repayment (saving up to ~₹1.09 Lakhs/year in tax).
How This Calculator Works
Computes reducing balance monthly amortization where each payment covers that month's accrued interest and reduces the remaining principal loan balance.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]Variables in Formula:
Worked Step-by-Step Example
You buy a ₹75 Lakh flat in Bangalore, pay ₹15 Lakhs (20%) down payment, and take a ₹60 Lakh loan at 8.5% interest for 20 years.
Key takeaway: Over 20 years, you repay ₹1.25 Crores in total to the bank (paying more in interest than the original ₹60L loan). Prepaying 1 extra EMI per year can save over ₹18 Lakhs in interest!
Common Mistakes to Avoid
⚠ Taking a 30-year tenure to reduce EMI slightly
A 30-year loan reduces EMI by only ~10%, but nearly doubles your total interest payout. Stick to a 15–20 year horizon wherever possible.
⚠ Not prepaying principal during early years
In the first 5 years of a home loan, over 70% of your EMI goes purely toward interest. Prepaying even ₹50,000/year in the initial years drastically shortens the loan.
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