Calculate your home loan EMI, total interest and see how prepayment slashes your interest burden and loan tenure.
Banks lend up to 75–90% of property value (Loan-to-Value). You must arrange 10–25% as down payment. SBI, HDFC typical LTV: 80%.
Fixed Obligation to Income Ratio - banks want your total EMIs (including new loan) below 40–50% of gross monthly income. Plan accordingly.
Home loan interest up to ₹2 lakh/year is deductible from income tax (self-occupied property) under Section 24(b) - reduces your tax liability.
Most banks now link home loan rates to Repo-Linked Lending Rate (RLLR). When RBI cuts rates, your EMI reduces automatically - unlike older MCLR loans.
A home loan (also called a housing loan or mortgage) is typically the largest financial commitment most Indians make in their lifetime. The EMI (Equated Monthly Instalment) is calculated using the reducing-balance method: EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P is the principal, R is the monthly interest rate, and N is the total number of months. This formula ensures that early EMIs are predominantly interest-heavy, gradually shifting toward principal repayment over the loan tenure. This amortisation schedule helps borrowers understand exactly how much they repay in total and plan prepayments strategically.
As of 2024, home loan interest rates in India range from approximately 8.35% to 9.5% per annum for salaried applicants with good CIBIL scores (750+). The Reserve Bank of India (RBI) regulates lending rates through its repo rate policy, and most home loans are linked to external benchmarks (EBLR - External Benchmark Lending Rate) which adjust when RBI changes rates. The National Housing Bank (NHB) oversees housing finance companies (HFCs) like HDFC, LIC Housing Finance, and PNB Housing. Under Section 24(b) of the Income Tax Act, home loan interest up to Rs. 2 lakh per year is tax-deductible, and principal repayment qualifies for Section 80C deduction up to Rs. 1.5 lakh.
This calculator generates a complete amortisation schedule showing each month's interest component, principal component, and outstanding balance. Use it to evaluate the impact of partial prepayments - even a single annual prepayment equal to one EMI can reduce total tenure by 12-18 months on a 20-year loan, saving lakhs in interest.