Home Loan Calculator

Real Estate

Enter your loan amount, rate and tenure to get your EMI — then add any extra payments to see how much interest you save and how many years you shave off.

Free · No sign-up · Private5 min readUpdated 26 July 2026

In short: The Home Loan Calculator is a free online tool that lets you work out your home-loan EMI and see how extra payments cut interest and payoff time — instantly, with charts, a worked example and the exact formula.

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Results

Monthly EMI

₹43,391

on ₹50,00,000

Total interest

₹54,13,879

Over 20 years

Total payable

₹1,04,13,879

Principal + interest

Explain my result with AI

A plain-English read of your numbers.

Outstanding balance

Your balance with extra payments vs the original, no-prepayment schedule.

Year-wise repayment

Year-wise repayment
Year	Principal	Interest	Balance
1	₹99,511	₹4,21,182	₹49,00,489
2	₹1,08,307	₹4,12,387	₹47,92,181
3	₹1,17,881	₹4,02,813	₹46,74,300
4	₹1,28,300	₹3,92,394	₹45,46,000
5	₹1,39,641	₹3,81,053	₹44,06,359
6	₹1,51,984	₹3,68,710	₹42,54,375
7	₹1,65,418	₹3,55,276	₹40,88,957
8	₹1,80,039	₹3,40,655	₹39,08,918
9	₹1,95,953	₹3,24,741	₹37,12,965
10	₹2,13,274	₹3,07,420	₹34,99,691

Principal and interest paid each year with the closing balance (includes any extra payments).

Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

P: Loan amount
r: Monthly interest rate (annual ÷ 12 ÷ 100)
n: Number of monthly instalments (years × 12)

Step-by-step calculation

Worked with the default values.

1
Monthly EMI
P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
= ₹43,391
2
Total interest (no prepayment)
EMI × 240 − ₹50,00,000
= ₹54,13,879
3
Total amount payable
Principal + total interest
= ₹1,04,13,879

How it works

The EMI is fixed for the tenure; early on, most of it is interest and little is principal.
Extra payments — monthly, yearly or a one-time lump sum — go straight against principal, erasing the future interest that balance would have accrued.
The chart keeps the original no-prepayment balance so you can see exactly how much sooner you finish.

Examples

₹50L at 8.5% for 20 years

EMI ≈ ₹43,391. Adding ₹5,000/month clears the loan years early and saves several lakhs in interest.

Understanding the Home Loan Calculator

Your EMI, and the money you can save

A home loan is the largest financial commitment most people make, and the headline number is the EMI — the fixed monthly instalment set by your loan amount, interest rate and tenure. It follows the standard formula, EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1). But the EMI is only the starting point. The real money is won or lost in how you handle prepayments.

Why prepaying early matters so much

Interest is charged on your outstanding balance, and in the early years of a loan almost all of each EMI goes toward interest rather than principal. That means a rupee of extra principal repaid early removes all the future interest that rupee would have accrued over the remaining years. Prepay the same amount near the end of the loan and the effect is tiny; prepay it in year one or two and it is enormous.

This calculator lets you add extra payments three ways — a little more every month, a yearly lump sum (handy for an annual bonus), or a one-time prepayment — and it always keeps the original, no-prepayment balance on the chart so you can see exactly how much sooner you finish and how much interest you save.

Tenure, rate and tax

A shorter tenure raises the EMI but cuts total interest sharply; a longer tenure is easier on cash flow but costs far more overall. On floating-rate loans, prepayment is penalty-free under RBI rules, so paying ahead whenever you have surplus is usually the smartest move. And under the old tax regime, a home loan offers deductions of up to ₹1.5 lakh on principal (Section 80C) and ₹2 lakh on interest (Section 24(b)) for a self-occupied home — worth weighing against the new regime.

Planning the purchase itself — price, down payment, appreciation and the ongoing costs of ownership? Use the Home Value calculator for that side of the picture.

Pros

Spreads the cost of a home over decades, making ownership achievable without huge upfront cash.
Prepayments on floating-rate loans are penalty-free and cut interest sharply.
Attractive tax deductions on both principal and interest under the old regime.
Typically the cheapest large loan available, since the property acts as security.

Cons

Total interest over 20–30 years can approach or exceed the original loan amount.
Ties up a large share of your income in EMIs, reducing flexibility.
Floating rates can rise, increasing your EMI or extending the tenure.

Tips

1Make prepayments early in the tenure, when the interest component of each EMI is highest.
2When rates fall, keep your EMI steady so the extra automatically goes to principal.
3Even a small extra amount each month compounds into years shaved off the loan.
4Maintain a CIBIL score above 750 to negotiate a lower interest rate.

Frequently asked questions

Everything you need to know about the Home Loan Calculator.

Do extra payments really help?

Significantly. Because interest is charged on the outstanding balance, every extra rupee of principal you repay early removes all the future interest that balance would have generated. Prepaying early in the tenure saves the most.

Monthly, yearly or one-time — which prepayment is best?

They all reduce principal; what matters is timing and amount. A steady extra monthly amount is easiest to sustain, a yearly lump sum suits an annual bonus, and a one-time prepayment early in the loan has the biggest single impact. Do whichever you can start soonest.

Is there a penalty for prepaying a home loan?

Under RBI rules, floating-rate home loans to individuals generally carry no prepayment or foreclosure penalty. Fixed-rate loans may charge a fee, so check your loan agreement before making a large prepayment.

Should I choose a shorter tenure?

A shorter tenure raises the EMI but sharply reduces total interest. If your budget allows, a shorter tenure — or regular prepayments on a longer one — saves the most while keeping some flexibility.

What tax benefits does a home loan offer?

Under the old tax regime you can claim up to ₹1.5 lakh a year on principal under Section 80C and up to ₹2 lakh on interest under Section 24(b) for a self-occupied home. These are largely unavailable under the new regime, so choose based on your overall tax position.

Fixed or floating interest rate?

A fixed rate stays constant for a set period — predictable EMIs, usually starting higher. A floating rate is linked to a benchmark such as the repo rate and moves with it, so your EMI or tenure changes as rates rise or fall. Floating rates also allow penalty-free prepayment.

How does my credit score affect the loan?

A higher CIBIL score (typically 750+) improves approval odds and can secure a lower interest rate, saving lakhs over the tenure. A weak score may mean a higher rate, a smaller loan, or rejection.

Is it better to prepay or invest the surplus?

Compare your loan’s effective rate against your expected post-tax investment return. If the loan rate is higher than what you can reliably earn elsewhere, prepaying usually wins; if equity returns are expected to comfortably exceed it, investing may build more wealth.

Methodology & sources

How the Home Loan Calculator is calculated, and where the underlying rules come from.

How we calculate it

Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.

Sources & references

Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.

Reviewed by Dhirendra Bisht, Founder & Lead Engineer, FinCalcHub — last reviewed 26 July 2026.