Home loan EMI calculator
Your EMI and total interest over the life of the loan, and what a part-prepayment saves.
Your loan
- Monthly EMI
- ₹26,035
- Total interest
- ₹32,48,327
- Processing fee + 18% GST
- ₹17,700
- Total cost of the loan
- ₹32,66,027
- Effective annual cost
- 8.58%
- Money in hand
- ₹29,82,300
- You pay back in 20 yr
- ₹62,66,027
Total cost = interest + processing fee + GST. Effective annual cost is the yearly rate you really pay on the money in hand, the way lenders work out the APR in a Key Fact Statement.
Same loan, different tenures
| Tenure | EMI | Total interest | Total cost (incl. fee + GST) | Effective annual cost |
|---|---|---|---|---|
| 120 months | ₹37,196 | ₹14,63,485 | ₹14,81,185 | 8.64% |
| 180 months | ₹29,542 | ₹23,17,594 | ₹23,35,294 | 8.60% |
| 240 months (yours) | ₹26,035 | ₹32,48,327 | ₹32,66,027 | 8.58% |
| 300 months | ₹24,157 | ₹42,47,044 | ₹42,64,744 | 8.57% |
| 360 months | ₹23,067 | ₹53,04,266 | ₹53,21,966 | 8.56% |
A longer tenure lowers the EMI but raises the total interest. A fixed fee costs more per year on a short loan.
How the calculator works
- Interest on the reducing balance with monthly rests, the way Indian banks and housing finance companies quote home loans.
- The processing fee and its GST are counted in the total cost.
- The rate is held fixed for the whole tenure; floating rates will move. Figures are estimates; your lender's Key Fact Statement is final.
Questions people ask
How is a home loan EMI calculated?
With the same reducing-balance formula as any loan: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the yearly rate ÷ 1,200 and n the months. Early EMIs are mostly interest; the principal share grows every month.
Is it better to prepay a home loan or invest?
Prepaying saves the loan's interest rate for certain; investing may earn more but with risk. In our example, ₹2,00,000 prepaid after 3 years on a ₹30,00,000 loan at 8.5% for 20 years saves about ₹5,62,488 in interest if you keep the EMI. RBI rules don't allow prepayment charges on floating-rate home loans taken by individuals.
Does my EMI change when the rate changes?
On a floating-rate loan, the lender usually keeps the EMI and changes the tenure when rates move, unless you ask to change the EMI instead. Re-run the calculator with the new rate to see both options.
What else does a home loan cost?
Besides interest: a processing fee (often a fraction of a percent of the loan) with 18% GST, legal and valuation charges, stamp duty on the loan agreement, and sometimes property insurance. The calculator counts the processing fee and its GST; the lender's Key Fact Statement lists the rest.