Home Loan EMI Calculator

A home loan EMI is the fixed monthly payment you make to your housing finance company or bank to repay a housing loan. In India, home loans run 5 to 30 years at interest rates between 8.4% and 10% per annum (linked to RBI repo rate for floating-rate loans). The EMI covers principal repayment and interest, with most of the early years paying interest and the later years building equity in your property.

Home loans are the largest single borrowing most Indians take on. Choosing the right lender, tenure, and rate type can save ₹5-20 lakh in lifetime interest cost.

As of 2026, repo-linked home loans start at 8.4% per annum at public sector banks (SBI, Bank of Baroda, PNB) and 8.5-9% at private banks (HDFC, ICICI, Axis). LIC Housing, PNB Housing, and Bajaj Housing are competitive non-bank lenders. Floating rates reset within 3 months of any repo rate change.

Fixed-rate home loans are rare in India and typically priced 100-150 bps above floating rates. The hybrid option (fixed for first 2-3 years, floating after) is popular for new borrowers seeking initial predictability.

The standard reducing balance formula applies: EMI = P × r × (1+r)^n / ((1+r)^n − 1). For a ₹50 lakh loan at 8.5% over 20 years, the EMI is approximately ₹43,400 per month. Over the full 20 years you would pay around ₹54 lakh in interest - more than the loan amount itself.

A common myth is that early EMIs reduce principal slowly. Use prepayment in the first 7-10 years for maximum interest savings. A single ₹5 lakh prepayment in year 3 of a 20-year loan can save ₹18-22 lakh in interest and reduce the tenure by 4-5 years.

Under the old tax regime, home loan borrowers can claim: (1) Up to ₹1.5 lakh principal repayment under Section 80C; (2) Up to ₹2 lakh interest paid on a self-occupied property under Section 24(b); (3) Additional ₹1.5 lakh interest under Section 80EEA for first-time buyers on loans up to ₹45 lakh. Together this can give ₹5 lakh in tax-deductible expenses per year.

Under the new tax regime (default from FY 2023-24), no home loan deductions are available except for let-out property interest. Choose the old regime if you have an active home loan and combined deductions exceed ₹4 lakh.

The rent-vs-buy math depends on city, rental yield, and your time horizon. In metros like Bengaluru and Pune where rental yield is 2.5-3%, renting is mathematically cheaper short-term, but ownership wins over 10+ years thanks to property appreciation. Run scenarios with this calculator using your loan tenure and EMI, and compare with current rent plus expected returns on the down payment if invested separately.