ReckonBoxHow the home loan EMI calculator works
A home loan EMI is the fixed monthly payment on a housing loan, made up of interest on the balance you still owe plus a part of the principal, calculated on the reducing-balance method every Indian bank uses. Give the calculator your loan amount, the rate your bank quotes and the tenure, and it returns the EMI, the total interest, the EMI for every common loan size, the tax you save under Section 24(b), and whether that EMI fits your income.
Take the default. A Rs 30,00,000 loan at 8.5% for 20 years has an EMI of Rs 26,035. Over 240 months you repay Rs 62,48,400, and Rs 32,48,400 of that is interest, more than the amount you borrowed. That is the reality of a long home loan, and it is why the rate and the tenure matter far more than most buyers expect.
The home loan EMI formula
EMI is P times r times (1 + r) to the power n, all divided by (1 + r) to the power n minus 1, where P is the loan amount, r the monthly rate and n the tenure in months. The monthly rate is the annual rate divided by 12 and by 100, so 8.5% a year is about 0.00708 a month. Interest is charged only on the balance still outstanding, so as the balance falls the interest slice of each EMI shrinks and the principal slice grows, even though the EMI never changes.
Most home loans in India float with the RBI repo rate. When the rate resets, the bank usually keeps the EMI steady and changes the tenure, or keeps the tenure and changes the EMI. Re-run this tool with your new rate to see the effect either way.
EMI for every loan size, and per lakh
The EMI per lakh is the installment on a Rs 1,00,000 loan at a given rate and tenure, and multiplying it by the number of lakhs gives your EMI. At 8.5% for 20 years that figure is about Rs 868 per lakh, so a Rs 50,00,000 loan runs to roughly Rs 43,400 a month and a Rs 1,00,00,000 loan to about Rs 86,800. The table below and the live one above both hold the rate and tenure fixed so you can read off any amount without re-running the tool.
| Loan amount | Monthly EMI | Total interest |
|---|---|---|
| Rs 15 lakh | Rs 13,018 | Rs 16,24,320 |
| Rs 25 lakh | Rs 21,696 | Rs 27,07,040 |
| Rs 35 lakh | Rs 30,374 | Rs 37,89,760 |
| Rs 50 lakh | Rs 43,392 | Rs 54,14,080 |
| Rs 75 lakh | Rs 65,088 | Rs 81,21,120 |
| Rs 1 crore | Rs 86,783 | Rs 1,08,27,920 |
The interest keeps pace with the loan. Borrow more and you do not just pay a bigger EMI, you hand over lakhs more in interest across the two decades, which is the case for keeping the loan amount and the tenure as tight as your budget allows.
The tax you save on a home loan
Under Section 24(b) of the Income Tax Act, interest on a self-occupied home loan is deductible up to Rs 2,00,000 a year, and under Section 80C the principal repaid is deductible up to Rs 1,50,000. On the default Rs 30,00,000 loan the first-year interest is well above Rs 2,50,000, so it already crosses the Rs 2,00,000 interest cap in year one. A taxpayer in the 30% slab therefore saves about Rs 60,000 in tax on the interest alone, and the calculator recomputes this the moment you change the slab.
The principal side needs a caveat. That Rs 1,50,000 under Section 80C is a single shared pot, so if your EPF, PPF, insurance premiums or ELSS already fill it, the home loan principal adds nothing on top. The interest deduction under Section 24(b) sits in its own cap and is the one most borrowers actually gain from. First-time buyers of an affordable home may also qualify for extra interest relief under Section 80EEA, which has its own conditions on the stamp value and the sanction date.
How much home loan your salary supports
Banks size a home loan against the FOIR, the fixed obligations to income ratio, and usually cap the total of your EMIs at about 50% of gross monthly income. Enter your income in the calculator and it shows the EMI as a share of it plus the largest loan a 50% FOIR allows at your rate and tenure. On a Rs 1,00,000 monthly income, a 50% FOIR leaves Rs 50,000 for the EMI, which supports close to Rs 57,60,000 over 20 years at 8.5%, before the bank layers on its own checks.
Those checks are real. Lenders also weigh your credit score, age, job stability and any running EMIs, and they lend only up to about 75% to 90% of the property value. So this figure is a planning ceiling, and the bank keeps the final say.
What this does not promise
This calculator uses the reducing-balance math every bank applies, but a real home loan carries costs the monthly figure leaves out: a processing fee, legal and valuation charges, property insurance, and a floating rate that moves over 20 years. The tax numbers follow the current Section 24(b) and 80C limits, yet your actual benefit depends on your regime, income and other deductions. Loan approval rests on your income, credit history and the lender's rules. Treat all of this as planning, not financial advice, and confirm the exact terms with your bank and a qualified tax adviser before you sign.
Frequently asked questions
What is a home loan EMI calculator? A home loan EMI calculator works out the fixed monthly installment on a housing loan from the loan amount, the interest rate and the tenure, using the reducing-balance method Indian banks apply. A Rs 30,00,000 loan at 8.5% for 20 years has an EMI of Rs 26,035 and about Rs 32,48,400 of total interest.
What is the home loan EMI formula? The EMI formula is EMI = P times r times (1 + r) to the power n, divided by (1 + r) to the power n minus 1, where P is the loan amount, r is the monthly rate (the annual rate divided by 12 and by 100) and n is the tenure in months. Interest each month is charged on the balance still outstanding, so early EMIs are mostly interest and later ones mostly principal.
What is the EMI per lakh on a home loan? The EMI per lakh is the monthly installment on a Rs 1,00,000 loan at a given rate and tenure, and you multiply it by the number of lakhs to get your EMI. At 8.5% for 20 years the EMI is about Rs 868 per lakh, so a Rs 50,00,000 loan works out to roughly Rs 43,400 a month.
How much tax can I save on a home loan? Under Section 24(b) the interest on a self-occupied home loan is deductible up to Rs 2,00,000 a year, and under Section 80C the principal repaid is deductible up to Rs 1,50,000, per the Income Tax Act. On a Rs 30,00,000 loan the first-year interest already crosses the Rs 2,00,000 cap, so a 30% slab taxpayer saves about Rs 60,000 in tax on the interest alone. The 80C principal limit is shared with other 80C investments like EPF and PPF.
How much home loan can I get on my salary? Banks usually cap the total of your EMIs at about 50% of gross monthly income, a limit called the FOIR, so a higher income supports a larger loan at the same rate and tenure. Enter your monthly income in the calculator to see the EMI as a percentage of it and the largest loan a 50% FOIR allows, though each lender sets its own limit and also checks your credit score and age.
Should I choose a longer or shorter tenure? A longer tenure lowers the EMI but raises the total interest, because interest keeps accruing on the balance for more years. On a Rs 30,00,000 loan at 8.5%, stretching from 15 to 20 years cuts the EMI but adds several lakh of interest over the life of the loan, which the EMI-by-loan-size table and the total interest figure let you compare.
Does prepaying a home loan help? Because interest is charged on the outstanding balance, a part-payment reduces that balance and every future interest charge on it, so the loan finishes sooner or the EMI drops. Floating-rate home loans to individuals carry no prepayment penalty under RBI rules, and our EMI calculator shows the exact interest and time a regular extra payment saves.
What is pre-EMI on an under-construction home? Pre-EMI is the interest-only payment a bank charges on the amount disbursed so far while a property is still under construction, before the full loan converts to a regular EMI. Pre-EMI is smaller than a full EMI because it pays no principal, so the loan balance does not fall until the full EMI begins.
Is the home loan interest rate fixed or floating? Most Indian home loans are floating-rate and reset with the RBI repo rate, so the EMI or the tenure changes when the rate moves. A fixed-rate home loan keeps the same rate for a set period and usually starts higher. This calculator uses the rate you enter, so re-run it with your reset rate to see the new EMI.