Home Loan EMI Calculator
See your EMI, total interest, payment breakup and smart ways to save.
A ₹80.00 L home loan at 8.50% over 20 years works out to a ₹69,426/month EMI — you repay about ₹1.67Cr in all, of which roughly ₹86.62L is interest (an estimate, before tax benefits).
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Your Loan Details
Processing fee ≈ ₹80,000, paid upfront (not financed).
Updates live as you type · enter your sanctioned rate
Your Monthly EMI
₹69,426
₹80.00 L · 8.50% · 20 years
Loan Pain (Total Repayment / Loan)
2.08x
Expensive
Loan Amount
₹80.00 L
Total Interest (Cost)
₹86.62 L
Total Repayment
₹1.67 Cr
Tenure
240 months
20 years
You'll pay ₹86.62L in interest (2.08x of your loan amount).
Try prepaying or reducing tenure to save big on interest.
Can You Afford This EMI?
Based on your monthly income.
EMI to Income Ratio
35%
ComfortableKeep your EMI under 35% of income for financial comfort — lenders usually cap around 40%.
Every ₹100 of Your EMI Goes Like This
See how the split shifts from interest to principal over time.
Year 1
81% Interest
Year 5
73% Interest
Year 10
59% Interest
Year 15
37% Interest
Year 20
4% Interest
Where Your EMI Goes Over Time
In early years most of your EMI goes to interest. As the balance falls, principal repayment takes over.
When Principal Overtakes Interest
The break-even point in your loan journey.
Break-even in Year
13
That's when more of each EMI starts going to principal than to interest.
After Year 13, your money starts working more towards building your ownership.
Cumulative Principal vs Interest Paid
When your total principal paid finally overtakes your total interest paid.
- Cumulative Interest Paid
- Cumulative Principal Paid
What This Home Really Costs You
Loan Amount (borrowed)
₹80.00 L
Total Interest (cost of borrowing)
+ ₹86.62 L
Processing fee (upfront)
+ ₹80,000
Total you repay
= ₹1.67 Cr
You pay 2.08x your loan amount as the true cost of this home.
Smart ways to save
Three levers that cut your interest. Each assumes the extra goes straight to principal.
Extra EMI Simulator
Add extra to principal every month.
Extra monthly payment
You save
₹39.39 L
in interest
Tenure shorter by
8y 1m
debt-free sooner
Paid off in 11y 11m instead of 20y.
Prepayment (One-time)
Make a part payment today.
You save
₹19.09 L
in interest
Tenure shorter by
2y 10m
debt-free sooner
A bonus or maturing deposit applied to principal right now.
Reduce Tenure
Higher EMI, far less interest.
You save
₹24.82 L
in interest
New EMI
₹78.8K
/month
EMI rises by ₹9,353/month.
Key takeaway
The earlier you pay more towards principal, the less interest you pay and the sooner you become debt-free.
Year-by-year amortization
How each year's payments split between principal and interest, and the balance left, across the 20 years of this loan.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| Year 1 | ₹1.59 L | ₹6.74 L | ₹78.41 L |
| Year 2 | ₹1.73 L | ₹6.60 L | ₹76.67 L |
| Year 3 | ₹1.89 L | ₹6.45 L | ₹74.79 L |
| Year 4 | ₹2.05 L | ₹6.28 L | ₹72.74 L |
| Year 5 | ₹2.23 L | ₹6.10 L | ₹70.50 L |
| Year 6 | ₹2.43 L | ₹5.90 L | ₹68.07 L |
Continue planning
How the home loan EMI is calculated
EMI = P × i × (1 + i)ⁿ ÷ [ (1 + i)ⁿ − 1 ]
- EMI
- equated monthly instalment
- P
- loan amount (principal)
- i
- monthly rate = annual rate ÷ 12 ÷ 100
- n
- number of months = years × 12
Worked example
With your inputs — a ₹80.00 L loan at 8.50% for 20 years: the monthly rate is i = 0.708% and n = 20 × 12 = 240 instalments. That gives an EMI of about ₹69,426 — so you repay roughly ₹1.67 Cr in all, of which about ₹86.62 L is interest. This is an estimate on a level reducing-balance loan, before any tax benefits, fees or rate changes.
Most asked home loan questions
The EMI is computed on the loan amount using the standard reducing-balance formula, the same one used for any other loan. EMI = P·i·(1+i)^n / ((1+i)^n − 1), where i is the monthly rate and n the number of months. It depends only on the loan amount, the interest rate and the tenure.
Because the tenure is long (often 20–30 years) and the principal is large, interest compounds on the outstanding balance for decades. On a typical 20-year loan at 8.5% you often repay nearly as much in interest as the amount you borrowed — that's why even small prepayments early on save lakhs.
Early on, most of each EMI is interest because the balance is high. As the balance falls, the principal share grows. The 'break-even' year above is when more of each EMI finally goes to principal than to interest — usually past the halfway point of a 20-year loan.
Enormously, especially early. Interest is charged on the outstanding balance, so prepaying in the first years — when the balance is highest — kills the most interest and shortens your tenure. A modest extra ₹5,000–10,000 a month on a large loan can save several lakhs and finish the loan years early. The simulators above model exactly this.
A shorter tenure forces a higher EMI but slashes total interest. A longer tenure keeps the EMI affordable but costs far more interest overall. A flexible middle path is to take a comfortable tenure and prepay whenever you have surplus — you get low committed EMI plus the interest savings. Compare both above.
In India, under the old tax regime, principal repayment can qualify under Section 80C (up to ₹1.5 lakh/yr) and interest under Section 24(b) (up to ₹2 lakh/yr for a self-occupied home). The new regime generally removes these for a self-occupied property. Limits and eligibility change with the regime and your situation, so confirm with current rules or an advisor — this calculator doesn't model tax savings.
The complete guide to home loans
Why home loan interest is the real cost
A home loan's EMI is fixed by three things: the loan amount, the interest rate and the tenure. Because interest accrues on the outstanding balance for 15–30 years, the total interest is huge — on a typical 20-year loan you often repay close to as much in interest as you borrowed. A longer tenure lowers the monthly EMI but raises the total interest, so affordability and interest pull in opposite directions.
How the EMI is calculated
This calculator uses the standard reducing-balance formula: EMI = P·i·(1+i)^n / ((1+i)^n − 1), where P is the loan amount, i the monthly interest rate (annual ÷ 12 ÷ 100) and n the number of monthly instalments. Early EMIs are mostly interest and barely dent the principal; the split flips over time. The "break-even" year above is when more of each EMI finally goes to principal than to interest.
Prepayment: the biggest lever you have
Because interest is charged on the balance, prepaying early — when the balance is highest — kills the most interest. On a large home loan, an extra ₹5,000–10,000 a month, or a one-time lump sum from a bonus, can save several lakhs and finish the loan years ahead of schedule. The simulators above show the exact interest saved and time shaved off for your numbers. Floating-rate loans usually allow free part-prepayment; check your lender's terms.
Shorter tenure vs longer tenure
A shorter tenure raises the EMI but slashes total interest; a longer one keeps the EMI affordable but costs far more interest overall. Many borrowers take a comfortable tenure for a low committed EMI, then prepay whenever they have surplus — getting affordability and interest savings together. The comparison above lets you weigh a higher EMI against the interest you'd save.
Tax benefits — Section 24(b) and 80C
Under the old tax regime in India, the interest you pay can be deducted under Section 24(b) — up to ₹2 lakh a year for a self-occupied property — and the principal repaid can qualify under Section 80C, within its overall ₹1.5 lakh limit. The new tax regime generally removes the Section 24(b) deduction for a self-occupied home, so whether the benefit applies depends on your chosen regime. Rules and limits change — this calculator does not model tax savings, so confirm the current provisions or consult a tax adviser.
Cash beyond the EMI
Buying a home also needs cash for the down payment and for stamp duty and registration — roughly 7% of the price, varying by state — paid from savings, not financed. Factor the processing fee (around 0.5–1% of the loan) and insurance in too. Treat every figure here as a planning estimate, not a final quote; confirm the exact rate, fees and prepayment terms with your lender before committing.