Home Loan EMI Calculator
Compute the monthly EMI, total interest, and total payment on a home loan.
- Principal
- ₹50.00L
- Total interest
- ₹54.14L
Reducing-balance EMI at a constant 8.5% annual rate — interest is charged on the outstanding balance, which the chart shows declining to zero over the tenure.
Independent · No commissions · No fund-house data — how the numbers are computed
How it works
This calculator computes the monthly EMI on a home loan from the loan amount, interest rate and tenure, on the reducing-balance basis all housing lenders use. It starts from a representative loan — ₹50 lakh at 8.5% over 20 years — with the rate adjustable from 5% to 15% and the tenure up to 30 years, and shows the EMI, total interest and how the outstanding balance declines year by year.
Home loans are the cheapest retail credit because the house secures them, but their long tenures make interest the dominant cost. At the defaults, the ₹50 lakh loan carries an EMI of about ₹43,400 — and roughly ₹54 lakh of interest over 20 years, more than the principal itself. Early years are interest-heavy: the balance falls slowly at first because most of each EMI services interest on a still-large principal.
The tenure lever is at its most dramatic here. The same ₹50 lakh at 8.5% over 30 years drops the EMI to about ₹38,400 but pushes total interest past ₹88 lakh. Small rate differences also compound over decades — half a percentage point on this loan changes total interest by several lakh, which is why refinancing and prepayment matter more for home loans than any other credit.
EMI = P · r · (1+r)^n / ((1+r)^n − 1)P is the home loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100), n the tenure in months. Each EMI first covers the month's interest on the outstanding balance; the remainder reduces principal.
Frequently asked questions
What EMI does a ₹50 lakh home loan cost?
At this calculator's defaults — ₹50 lakh at 8.5% per annum over 20 years, reducing balance — the EMI is about ₹43,400 a month. Total payments come to roughly ₹1.04 crore, of which about ₹54 lakh is interest: on a 20-year home loan the interest typically exceeds the principal borrowed. At 30 years the EMI eases to about ₹38,400 while total interest climbs past ₹88 lakh.
Why does my home loan balance barely fall in the early years?
Because interest is charged monthly on the outstanding balance, and early on that balance is at its peak. On ₹50 lakh at 8.5%, the first month's interest is about ₹35,400 — so of a ₹43,400 EMI, only ₹8,000 reduces principal. The split shifts steadily: over time the interest portion shrinks and the principal portion grows, which is why the balance curve is nearly flat at the start and steep at the end.
Does choosing a 30-year tenure over 20 years save money?
It lowers the monthly EMI but raises the total cost substantially. On ₹50 lakh at 8.5%, moving from 20 to 30 years cuts the EMI from about ₹43,400 to about ₹38,400 — a ₹5,000 monthly relief — while total interest rises from roughly ₹54 lakh to over ₹88 lakh. The longer tenure is an affordability tool; every extra year is more time for interest to accrue on the outstanding balance.
How much difference does 0.5% on the interest rate make?
More than it looks over a home-loan tenure. On a ₹50 lakh, 20-year loan, moving from 8.5% to 9% raises the EMI by about ₹1,600 a month and adds roughly ₹4 lakh of interest over the tenure; the same half point downward saves a similar amount. This is why comparing lenders and refinancing after rate cuts matter far more on a 20-year mortgage than on shorter loans.
Is prepaying a home loan penalised?
On floating-rate home loans to individuals, RBI rules prohibit prepayment and foreclosure charges, so part-prepayments are free. Each prepayment cuts the outstanding principal immediately; keeping the same EMI and letting the tenure shorten saves the most interest, since long tenures are where home-loan interest accumulates. Fixed-rate loans may carry prepayment charges as per the loan agreement.
Go further
The general-purpose version of the same reducing-balance math.
What the reducing-balance method actually saves you versus a flat rate.
The same calculation preset for car-loan amounts and tenures.
What a fixed EMI is really worth 15 years into the tenure.