The whole page, in five lines
- The EMI is the least useful number. Total interest and upfront cash decide whether the purchase works.
- Past about nineteen years at current rates, you repay more in interest than you borrowed.
- The loan does not cover stamp duty or registration. Budget 6–9% of the price in cash on top of the down payment.
- Your down payment has a legal floor. Lenders cannot fund above 75–90% of value depending on loan size.
- Prepayment on a floating-rate loan is free. The RBI bars foreclosure charges for individual borrowers.
Work Out Your EMI
Start from the property price rather than the loan amount, because that is the number you actually know. The calculator works out what you can borrow against it, what that costs, and what you have to find in cash.
Home loan EMI calculator
Change any figure and the results update as you type. Nothing is sent anywhere and nothing is stored.
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The highlighted row in the table is the tenure you entered. Read the rows above and below it before you decide: the EMI column and the total interest column move in opposite directions, and a lender will only ever put the first one in front of you.
The Formula, and Why It Is Not a Secret
Every lender in India uses the same reducing-balance formula. There is nothing proprietary in it, and a bank quoting you a different EMI on the same inputs has changed one of the inputs:
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
- P — the principal, meaning the loan, not the property price
- r — the monthly rate: the annual rate ÷ 12 ÷ 100. An 8.5% annual rate is 0.0070833
- n — the tenure in months. Twenty years is 240
A shortcut worth memorising: at 8.5% over twenty years, each ₹1 lakh borrowed costs about ₹868 a month. A ₹48 lakh loan is therefore roughly ₹41,700. You can check any quote in your head with it.
Where the early EMIs actually go
On a ₹48 lakh loan at 8.5% over twenty years, the first instalment of ₹41,656 splits into about ₹34,000 of interest and only ₹7,650 of principal. Five years in you have paid roughly ₹25 lakh and reduced the loan by about ₹5.7 lakh. This is not a trick — it is what charging interest on the outstanding balance produces — but it explains two things people find surprising: why prepaying in year two is worth several times prepaying in year twelve, and why selling in year four rarely leaves the equity people expect.
What a Longer Tenure Really Costs
Stretching the term is the standard fix when the EMI does not fit. It works, and it is expensive in a way that is invisible month to month. Same ₹48 lakh loan, same 8.5%:
| Tenure | EMI | Total interest | Total repaid |
|---|---|---|---|
| 10 years | ₹59,513 | ₹23,41,576 | ₹71,41,576 |
| 15 years | ₹47,267 | ₹37,08,150 | ₹85,08,150 |
| 20 years | ₹41,656 | ₹51,97,324 | ₹99,97,324 |
| 25 years | ₹38,651 | ₹67,95,270 | ₹1,15,95,270 |
| 30 years | ₹36,908 | ₹84,86,825 | ₹1,32,86,825 |
Moving from twenty years to thirty saves ₹4,748 a month and costs ₹32.9 lakh more in interest. Moving from twenty to fifteen costs ₹5,611 more a month and saves ₹14.9 lakh.
Note where the EMI column stops moving. Between twenty-five and thirty years the instalment falls by ₹1,743 while the cost rises by nearly ₹17 lakh. Beyond about twenty years the extra term buys very little relief and a great deal of interest.
The point where interest overtakes the loan
At 8.5%, a home loan crosses over somewhere around the nineteenth year: past that, the interest you pay is larger than the sum you borrowed. At twenty years you repay about ₹52 lakh of interest on ₹48 lakh of loan; at thirty, ₹85 lakh. Nothing is wrong when this happens — it is arithmetic, not a penalty — but it is the strongest argument for taking the longer tenure to get approved and then prepaying to shorten it.
How Much You Are Allowed to Borrow
The down payment is not purely a matter of negotiation. There is a ceiling on how much of a property's value a lender may fund, and it tightens as the loan gets larger:
| Loan amount | Maximum funded | Your minimum down payment |
|---|---|---|
| Up to ₹30 lakh | 90% | 10% |
| ₹30 lakh – ₹75 lakh | 80% | 20% |
| Above ₹75 lakh | 75% | 25% |
Two traps sit inside this. The percentage applies to the valuer's figure, not the price you agreed — if the valuation comes in low, your loan shrinks and the gap becomes cash. And the ceiling is a maximum, not an entitlement: a lender assessing your income may offer less, which is a separate question covered on the eligibility page.
The Cash the Loan Does Not Touch
This is the number that derails purchases, because the down payment gets planned for and the rest does not. On a ₹60 lakh property with 20% down:
| What | Roughly | Can it be borrowed? |
|---|---|---|
| Down payment | ₹12,00,000 | No |
| Stamp duty (6%) | ₹3,60,000 | No |
| Registration (~1%) | ₹60,000 | No |
| Legal, technical and processing fees | ₹15,000 – ₹40,000 | Sometimes added to the loan |
| Cash before disbursal | ≈ ₹16,20,000 plus fees |
That is 27% of the property price, on a loan advertised as covering 80% of it. Plan for 25–30% of the price in cash and the valuation gap described on the how to apply page stops being a crisis.
Prepayment Changes the Answer
The calculator assumes you pay the EMI and nothing more for the full term. Almost nobody does, and the difference is large.
On the ₹48 lakh, twenty-year loan, one extra EMI a year — about ₹41,700, which is what a modest bonus covers — takes roughly three and a half years off the term and saves about ₹10.5 lakh in interest. Paying ₹5,000 extra every month does rather more: about four and a half years off, and close to ₹13.8 lakh saved.
The reason this works so well early on is the split described above: in year two almost the whole of an extra rupee goes against principal, and every rupee of principal removed stops accruing interest for the remaining eighteen years.
Take the long tenure, then prepay
Borrowers often stretch to a fifteen-year term to save interest, then find the higher EMI leaves no room in a bad month. The safer structure is the opposite: take twenty or twenty-five years so the committed instalment is comfortable, and prepay whenever cash allows. On a floating-rate home loan the RBI bars lenders from charging individual borrowers a foreclosure or prepayment fee, so this flexibility costs nothing. You keep the low mandatory payment and get most of the short-tenure saving.
Where Tax Fits — and Where It No Longer Does
Home loan interest and principal have long carried deductions: interest under Section 24(b) and principal under Section 80C. Those deductions belong to the old tax regime.
The new regime, now the default, does not allow the Section 24(b) deduction on a self-occupied property or the 80C principal deduction. For a let-out property the interest position is different again.
The practical consequence: if you are on the new regime, treat the loan as costing what the calculator says it costs. Older articles and many bank pages still quote an "effective rate after tax benefit" that may no longer apply to you. Check your own regime before counting on it, and take an accountant's word over ours.
Please note
Every figure above is illustrative and computed on standard reducing-balance amortisation. It is not a quote. Actual EMIs depend on the rate a lender offers you, the day of the month the loan is disbursed, and how the lender handles the broken period. Loan-to-value limits, stamp duty rates and tax provisions change; the ones cited here were correct when this page was written. Approval, pricing and the sanctioned amount rest entirely with the bank or housing finance company. This page is general information, not financial or tax advice.
Questions This Page Gets Asked
How is home loan EMI calculated?
With the standard reducing-balance formula, EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where r is the monthly rate and n the tenure in months. Every lender uses it. At 8.5% over twenty years it works out to roughly ₹868 a month for each ₹1 lakh borrowed.
What is the EMI on a ₹50 lakh home loan?
About ₹43,400 a month at 8.5% over twenty years, and about ₹38,450 over thirty. The thirty-year version costs roughly ₹34 lakh more in interest across the term.
How much salary do I need for a ₹50 lakh home loan?
As a rough guide, lenders cap all your EMIs together at 50–60% of net income, so a ₹43,400 EMI usually needs around ₹85,000 to ₹95,000 net a month with no other loans running. Existing EMIs reduce it sharply. The full method is on the eligibility page.
Should I choose a 20-year or a 30-year tenure?
Take the longer one if the shorter EMI would leave you without a cushion, then prepay. Thirty years lowers the instalment by about ₹4,750 on a ₹48 lakh loan but adds nearly ₹33 lakh in interest if you actually run it to term — and on a floating-rate loan you are free to shorten it at any time without a charge.
Does the calculator include processing fees and stamp duty?
Stamp duty and registration are shown separately as cash needed, because they are not part of the loan. Processing and legal fees are not in the EMI either — they are typically 0.25% to 0.5% of the loan plus GST, sometimes capped, and are paid or added to the loan depending on the lender.
Why is my bank's EMI slightly different from this?
Usually the broken period. If your loan is disbursed mid-month, the first payment covers interest from the disbursal date to the end of that month, and the regular EMI starts afterwards. Some lenders also round the instalment. The difference is small and it is not a different formula.
Can I reduce my EMI on an existing loan?
Three ways: ask your lender to reset your spread to what new customers are being offered, move the loan to another lender, or make a lump-sum prepayment and ask for the EMI to be reduced rather than the tenure. The second is worked through on the balance transfer page.
Is a fixed rate better than floating for a home loan?
Over twenty to thirty years, floating usually wins, and it also carries the free-prepayment protection that fixed-rate loans do not. The reasoning is set out on the interest rates page.
Does using this calculator affect my credit score?
No. It runs entirely in your browser, nothing is sent anywhere, and no enquiry of any kind is created. Checking eligibility through Money Bharti is a soft enquiry and also does not affect your score.
Conclusion
Almost every home loan calculator answers the one question that was never really in doubt — what the monthly payment is — and stays silent on the two that decide whether the purchase works. The interest across twenty years is usually larger than the sum borrowed. The cash you need before the loan releases a rupee is usually a third more than the down payment you budgeted for.
Run your own numbers above, then do three things: check the loan against the funding ceiling so the down payment is not a surprise in week four, add stamp duty and registration to your cash plan, and take the tenure that keeps the EMI comfortable rather than the one that looks cheapest on paper. You can always prepay a long loan. You cannot always find an EMI you have already committed to.
What you will be offered is on the eligibility page, how the rate is built is under interest rates, and the full picture is in the home loan guide.
See the rate you would actually be offered
The calculator uses the rate you type in. Money Bharti shows what lenders would quote against your real file — income, existing EMIs and credit report — across RBI-registered banks and housing finance companies. Soft enquiry, no impact on your score.
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Where This Page Sits
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Responsible borrowing note
All rates, fees and eligibility figures on this page are indicative market ranges for illustration and are not an offer. Approval, pricing and the sanctioned amount rest entirely with the bank or NBFC. Money Bharti is a loan marketplace, not a lender. Assess your repayment capacity honestly and read the sanction letter in full before signing. This content is general information, not financial advice.