Home Loan EMI Calculator India

The EMI formula

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where r is the monthly rate (annual ÷ 1200) and n is the number of months.

r = 8.5 ÷ 1200 = 0.0070833, n = 240, so the EMI works out at ₹26,034.70.

Worked examples

₹30 lakh at 8.5% / 20 years → ₹26,034.70 a month
₹30 lakh at 8.5% / 30 years → ₹23,067 a month, but ₹53 lakh of interest
₹30 lakh at 9.5% / 20 years → ₹27,964 a month
₹50 lakh at 8.5% / 20 years → ₹43,391 a month

Prepayment is the lever that matters

Because interest is charged on the outstanding balance, an extra payment in year three saves far more than the same amount in year fifteen. Most Indian floating-rate home loans allow prepayment without a penalty, and each extra principal payment shortens the term rather than reducing the EMI unless you ask otherwise. A single annual prepayment of one EMI is a common, painless way to cut a year or two off the loan.

Tax treatment

On a self-occupied property, interest is deductible under Section 24(b) up to ₹2 lakh a year. At the 30% slab in the defaults that is worth up to ₹60,000 of tax saved annually — but only while the interest charged in the year exceeds that cap. In the early years of this loan the interest is well above ₹2 lakh; later it falls below, and the benefit shrinks with it. Principal repayment can qualify under Section 80C within its overall limit.

What this calculation leaves out

• Processing fees and insurance. Often 0.5–1% of the loan, financed or paid upfront.
• Rate resets. Floating rates change the EMI or the tenure, and this uses one rate for the full term.
• Property tax, maintenance and stamp duty. Real costs of ownership that are not part of the loan.
• Pre-EMI during construction. Under-construction properties often charge interest-only until possession.

Frequently Asked Questions