Home Loan EMI & Total Cost Calculator
Your EMI is only part of what a house costs. This works out the down payment you must fund, the stamp duty and registration on top, the tax you save each year, and what the whole purchase adds up to over the full tenure.
How is home loan EMI calculated in India?
Home loan EMI is calculated as EMI = P ร R ร (1+R)N รท [(1+R)N โ 1], where P is the loan amount, R is the monthly interest rate (annual rate รท 1200) and N is the tenure in months. On a โน50 lakh loan at 8.5% for 20 years, the EMI is approximately โน43,391 and the total interest is about โน54.14 lakh.
The EMI is not the full cost. Indian buyers also fund a down payment โ RBI caps lending at 75โ90% of property value depending on the loan size โ plus stamp duty of roughly 4โ7% and registration of about 1%, both payable upfront and not financeable. Against that, Section 24(b) allows up to โน2 lakh of interest and Section 123 of the Income-tax Act 2025 up to โน1.5 lakh of principal as annual deductions on a self-occupied property.
Home Loan Calculator
Enter the property price โ everything else is worked out for you.
Runs entirely in your browser. Nothing is uploaded or stored.
Where Your Money Goes
Total outgo breakdown
Principal vs interest, year by year
Read the second chart carefully. In the early years almost every rupee of your EMI goes to interest, not to owning the house. That is why prepaying in years 1โ7 saves far more than prepaying later โ and why a shorter tenure beats a longer one even when the monthly figure looks uncomfortable.
Repayment Schedule
Every instalment split into principal and interest, with the balance outstanding at each point.
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|
How Much Will a Bank Actually Lend?
The RBI caps loan-to-value by loan size. This is the floor on your down payment โ no lender will go below it, whatever your credit profile.
| Loan amount | Maximum LTV | Minimum down payment |
|---|---|---|
| Up to โน30 lakh | 90% | 10% of property value |
| โน30 lakh โ โน75 lakh | 80% | 20% of property value |
| Above โน75 lakh | 75% | 25% of property value |
LTV is calculated on property value excluding stamp duty and registration, which you must always fund yourself.
Tax Relief on a Home Loan
Section 24(b) โ interest
Up to โน2,00,000 per year on a self-occupied property. On a let-out property the full interest is deductible, though loss set-off against other income is capped at โน2 lakh.
Section 123 โ principal
Up to โน1,50,000 per year, under what was Section 80C before the Income-tax Act 2025 renumbering. This limit is shared with PPF, ELSS, life insurance and tuition fees.
Stamp duty and registration
Also claimable under Section 123, but only in the year of payment and within the same โน1.5 lakh ceiling. Most buyers have already exhausted it.
New regime removes most of this
Sections 24(b) and 123 apply under the old regime for self-occupied property. If you have opted for the new regime, the tax saving shown above will not apply.
The calculator applies the โน2 lakh and โน1.5 lakh caps year by year against your slab rate. In later years, as interest falls below โน2 lakh, your annual saving drops โ which is why the total is lower than simply multiplying the first year by the tenure. Compare regimes with the Income Tax Calculator.
Frequently Asked Questions
How much salary do I need for a โน50 lakh home loan?
Most Indian lenders cap total EMIs at 40โ50% of net monthly income. A โน50 lakh loan at 8.5% for 20 years carries an EMI of about โน43,400, so you would typically need net income of โน87,000 to โน1,10,000 per month with no other running EMIs. Existing car or personal loan instalments reduce the amount you can borrow rupee for rupee.
What is the minimum down payment for a home loan in India?
RBI rules cap lending at 90% of property value for loans up to โน30 lakh, 80% between โน30 lakh and โน75 lakh, and 75% above โน75 lakh. So the minimum down payment is 10%, 20% or 25% respectively. Stamp duty and registration sit on top and cannot be financed, so budget 5โ8% more than the down payment itself.
Is a 20-year or 30-year home loan better?
A 30-year tenure lowers the monthly EMI but costs substantially more overall. On โน50 lakh at 8.5%, twenty years costs about โน54.1 lakh in interest while thirty years costs about โน88.4 lakh โ roughly โน34 lakh more for a monthly saving of around โน5,000. Take the longest tenure you qualify for if it helps approval, then prepay aggressively.
Can I claim both Section 24(b) and Section 123 on the same loan?
Yes. They cover different components โ Section 24(b) applies to the interest portion up to โน2 lakh a year, and Section 123 (the erstwhile 80C) to the principal repaid up to โน1.5 lakh. Both require the old tax regime, and the Section 123 limit is shared with PPF, ELSS and other eligible investments.
Does prepaying a home loan attract a penalty?
Not on floating-rate loans to individual borrowers โ the RBI prohibits foreclosure and prepayment charges on those. Fixed-rate loans may carry a charge of 1โ3% of the prepaid amount. Check your sanction letter, since some lenders convert to fixed after an initial floating period.
Should I reduce the EMI or the tenure when I prepay?
Reducing tenure saves considerably more interest, because you stop paying it sooner rather than spreading a smaller amount over the same period. Reducing the EMI only makes sense if your monthly cash flow is genuinely strained. Ask your lender explicitly โ many default to lowering the EMI unless you instruct otherwise.
How does the RBI repo rate change my EMI?
Floating-rate home loans are linked to an external benchmark, usually the repo rate, and reset at least quarterly. A 0.25% change moves the EMI on a โน50 lakh, 20-year loan by roughly โน800. Many banks hold the EMI constant and adjust the tenure instead, so check which your lender does โ a rate rise can silently add years to your loan.
Is the PDF download free and is my data stored?
Yes, free, and no. Every calculation runs as JavaScript in your browser and the PDF is generated on your device. Your property price, income and loan figures are never transmitted to Arthzo or any server.
Related Tools & Guides
Disclaimer: This calculator is for information and planning only and is not financial or tax advice. Results are estimates based on the figures you enter. Stamp duty and registration vary by state and by buyer category โ several states offer concessions for women purchasers. Actual sanction terms depend on lender policy, credit profile and property valuation. Consult a SEBI-registered adviser or a qualified tax professional before deciding. Arthzo is not a bank, NBFC or lending intermediary.