Home loan EMI calculator
How much EMI will this home loan cost, and how much of it is interest?
Reducing balance, as quoted by the lender
₹43,391per month
- Total interest
- ₹54,13,840
- Total payable
- ₹1,04,13,840
- Interest as % of principal
- 108.3%
- Payments
- 240 months
- Principal
- Interest
| Year | Principal | Interest | Balance left |
|---|---|---|---|
| 1 | ₹99,510 | ₹4,21,182 | ₹49,00,490 |
| 2 | ₹1,08,306 | ₹4,12,386 | ₹47,92,184 |
| 3 | ₹1,17,879 | ₹4,02,813 | ₹46,74,305 |
| 4 | ₹1,28,298 | ₹3,92,394 | ₹45,46,007 |
| 5 | ₹1,39,638 | ₹3,81,054 | ₹44,06,369 |
| 6 | ₹1,51,981 | ₹3,68,711 | ₹42,54,388 |
| 7 | ₹1,65,414 | ₹3,55,278 | ₹40,88,974 |
| 8 | ₹1,80,038 | ₹3,40,654 | ₹39,08,936 |
| 9 | ₹1,95,950 | ₹3,24,742 | ₹37,12,986 |
| 10 | ₹2,13,272 | ₹3,07,420 | ₹34,99,714 |
| 11 | ₹2,32,121 | ₹2,88,571 | ₹32,67,593 |
| 12 | ₹2,52,638 | ₹2,68,054 | ₹30,14,955 |
| 13 | ₹2,74,969 | ₹2,45,723 | ₹27,39,986 |
| 14 | ₹2,99,275 | ₹2,21,417 | ₹24,40,711 |
| 15 | ₹3,25,729 | ₹1,94,963 | ₹21,14,982 |
| 16 | ₹3,54,519 | ₹1,66,173 | ₹17,60,463 |
| 17 | ₹3,85,855 | ₹1,34,837 | ₹13,74,608 |
| 18 | ₹4,19,960 | ₹1,00,732 | ₹9,54,648 |
| 19 | ₹4,57,082 | ₹63,610 | ₹4,97,566 |
| 20 | ₹4,97,483 | ₹23,209 | ₹83 |
Two numbers decide whether a house is affordable, and they are not the price. The first is the EMI, which has to survive alongside school fees and a salary that may not rise on schedule. The second is what the loan costs in total — on a twenty-year home loan at 8.5% the interest comes to more than the amount you borrowed, and none of it is visible in the monthly figure. This page gives you both, plus the year the balance finally starts falling quickly.
A worked example: ₹50,00,000 at 8.5% for 20 years
Say the flat is ₹62 lakh, you are putting in ₹12 lakh, and the bank sanctions ₹50,00,000 at 8.5% on reducing balance for 20 years. Those are the three inputs above — loan amount ₹50,00,000, rate 8.5%, tenure 20 years — and the calculator returns:
- ₹43,391 a month, for 240 payments.
- ₹54,13,840 total interest, on top of the ₹50,00,000 borrowed.
- ₹1,04,13,840 total payable — the interest is 108.3% of the principal, so the loan costs slightly more than twice the money you were lent.
The total is the sentence worth re-reading. A ₹62 lakh flat bought this way costs about ₹1.16 crore in cash out of your pocket, before stamp duty and before a single repair.
- ₹4,21,182 Interest — charged on a balance that is still the whole loan
- ₹99,510 Off the principal — what you actually own after twelve payments
Year 1 of ₹50,00,000 at 8.5% for 20 years: ₹5,20,692 paid, ₹49,00,490 still owed. Source: the calculator above.
Ten years in — half the tenure, ₹52,06,920 paid — the balance is ₹34,99,714. You have retired ₹15,00,286 of principal and handed over ₹37,06,634 in interest. The loan only starts collapsing in its last third, which is exactly why a prepayment in year three is worth several times the same rupees in year fifteen.
Total interest on ₹50,00,000 at 8.5%. Going from 20 to 30 years saves ₹4,945 a month and costs ₹34.27 lakh more in interest.
What this number does not account for
Nothing you pay at purchase
Stamp duty and registration go to the state, not the lender, and are not funded by the loan. Rates differ by state and often by the buyer’s gender — check your state’s own schedule, then add it to the down payment.
The fees around the loan
Processing fee, legal and technical valuation, CERSAI and documentation charges, GST on all of them, and any property or life cover the lender attaches. None sits inside the EMI; all of it is in the sanction letter.
A rate that will not stay put
Since RBI’s external-benchmark rules for retail floating-rate loans, most home loans track a benchmark such as the repo rate and reset periodically. The rate here is a snapshot; over 240 months yours will move.
Construction-linked disbursal
This schedule assumes the full amount lands on day one. On an under-construction flat the bank releases tranches and charges pre-EMI interest only on what it has released, so the real early years look different and the loan effectively starts later.
Four more things worth naming, because they change the number rather than sitting beside it:
Flat rate is not this rate. Everything above is reducing balance — interest on what you still owe. A quote expressed as a flat rate charges interest on the original amount for the whole tenure, which makes the same headline number cost far more. Home loans are normally reducing balance; some builder subvention and top-up offers are not. Ask which, in writing.
Prepayment is not always free. RBI’s directions bar foreclosure and prepayment charges on floating-rate home loans to individual borrowers. A fixed-rate loan is a different matter and can carry a charge, so read that clause before you plan around prepaying.
The EMI is not the housing cost. Maintenance and society charges, municipal property tax, insurance and the repairs a tenant would have called you about are all now yours. Compare against rent only after you have added them.
Tax relief changes the effective cost, and only under the old regime. Section 24(b) caps interest on a self-occupied house at ₹2,00,000 a year and Section 80C absorbs the principal within its ₹1,50,000 shared limit — but the default regime under Section 115BAC gives you neither. In year one of this example, the interest alone is more than double the 24(b) cap, so the deduction covers a slice of the cost, not the cost.
What to work out next
- Loan prepayment — what one lump sum, put in at the year you are actually at, takes off the interest or off the tenure.
- Stamp duty — the cash at registration that this EMI has nothing to do with, and that decides your real down payment.
- Rent vs buy — the same EMI set against the rent you would have paid and the return on the down payment you would still be holding.
What is the EMI on a ₹50 lakh home loan for 20 years?
At 8.5% reducing balance, ₹43,391 a month for 240 months. Over the full tenure that is ₹1,04,13,840 paid on a ₹50,00,000 loan — ₹54,13,840 of it interest. Change the rate by a quarter point or the tenure by a year in the calculator above and the figure moves; a quote from a lender is the only rate that counts.
Is 20 years or 30 years better for a home loan?
A longer tenure buys a smaller EMI and nothing else. On the same ₹50,00,000 at 8.5%, 20 years costs ₹43,391 a month and ₹54,13,840 in interest; 30 years costs ₹38,446 a month and ₹88,40,560. So thirty years saves ₹4,945 a month and adds ₹34,26,720 of interest — you pay back ₹1.38 crore instead of ₹1.04 crore on the same ₹50 lakh. Either side of twenty, 15 years costs ₹49,237 and ₹38,62,660; 25 years costs ₹40,261 and ₹70,78,300. Borrow long if the EMI is genuinely tight, then prepay — but treat the long tenure as a safety valve, not the plan.
How much of my home loan EMI is interest?
At the start, nearly all of it. On the ₹50,00,000 / 8.5% / 20-year loan, the first twelve EMIs total ₹5,20,692 and only ₹99,510 of that comes off the principal — the other ₹4,21,182 is interest. By the final year the same twelve payments put ₹4,97,483 against the principal and just ₹23,209 to interest. This is arithmetic, not a fee structure: interest is charged on the balance, and early on the balance is the whole loan.
Does the EMI include stamp duty, registration and processing fees?
No. The EMI is repayment of the sanctioned loan and interest on it, nothing else. Stamp duty and registration are paid to the state at purchase and vary by state (and in several states by the buyer's gender), and lenders do not fund them. The processing fee, legal and valuation charges, GST on those charges and any property or life cover the lender bundles in are all extra. Ask for the sanction letter's schedule of charges and add them yourself.
Can I claim tax deduction on my home loan EMI?
Only under the old regime, and the EMI has to be split first. Interest on a self-occupied house is deductible under Section 24(b) up to ₹2,00,000 a year; the principal portion counts inside the ₹1,50,000 Section 80C limit shared with EPF, PPF, ELSS and the rest. The default new regime under Section 115BAC allows neither for a self-occupied property. The calculator above shows the pre-tax cost — the split it prints per year is what your claim is worked out from.
Why does the last row of the table not close at exactly zero?
Because the monthly interest charge is rounded to the rupee, the way a lender books it, and 240 roundings leave a tail — ₹83 on the ₹50,00,000 case. A real lender squares this in the final instalment. It changes nothing about the EMI or the total.
This page starts from typical figures. In Hundo the same calculator opens on your own — the loan, the deposit, the salary already on the ledger — and says where each number came from.