🏡 Home Loan EMI Calculator with Prepayments
Mothly EMI:₹0
Total Interest:₹0
Total Payment:₹0
📈 Loan Balance Over Time
🍩 Interest vs Principal vs Prepayment
📊 Year-wise Principal vs Interest
Planning a loan or investment?
Check out our expert-curated guide to maximizing your returns and minimizing EMI burdens.
Learn More📅 Year-wise Amortization Table
| Year | Principal Paid | Interest Paid | Prepayment | Remaining Balance |
|---|
A Home Loan is a long-term financial commitment made to purchase or construct residential property. Banks and NBFCs offer loans that are typically repaid in monthly installments over a period ranging from 5 to 30 years. Understanding your EMI (Equated Monthly Installment) is crucial before committing to a housing loan.
The EMI consists of two components — principal repayment and interest payment. Initially, the interest portion is higher, but as the loan progresses, the principal portion increases due to the way amortization works. The EMI is calculated using the formula:
This calculator helps you determine your exact EMI, total interest payable over the loan tenure, and the total amount repaid. It also shows a yearly breakdown of your loan repayment using interactive charts and amortization tables.
⚠️ Note: A lower interest rate or shorter tenure can save you lakhs in interest. Making regular prepayments can also significantly reduce your overall burden. However, be mindful of any prepayment penalties set by your lender.
Understanding your EMI is not just about affordability—it’s about smart financial planning. Use this calculator to simulate various scenarios, compare loan offers, and make informed decisions about your home buying journey.
📘 How is Home Loan EMI Calculated?
EMI (Equated Monthly Installment) is calculated using the formula:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)- P = Loan Amount
- r = Monthly Interest Rate (annual rate / 12 / 100)
- n = Total Number of Monthly Installments (loan tenure × 12)
💡 Smart Tips for Home Loan Borrowers
- Opt for the lowest interest rate and compare across banks and NBFCs.
- Keep your credit score above 750 for better loan offers.
- Shorter tenures reduce interest payout, but increase EMI.
- Prepay when possible — even small lump-sum payments save interest.
- Understand fixed vs floating interest rates before choosing.
- Account for property insurance, legal fees, and processing charges in your budget.
- Look for tax benefits under Sections 80C and 24(b).
🤔 Frequently Asked Questions
- Q: What is a home loan?
A: A home loan is a secured loan that helps you buy, construct, or renovate a house. It is repaid in EMIs over a tenure that can extend up to 30 years. - Q: How is the EMI calculated?
A: EMI is calculated using a formula based on the loan amount, interest rate, and loan tenure. It includes both principal and interest components. - Q: Can I prepay my home loan?
A: Yes, most lenders allow part or full prepayment. It can reduce the total interest, but check if any prepayment charges apply. - Q: Is the interest on a home loan tax deductible?
A: Yes. Under Section 80C, you can claim up to ₹1.5 lakh for principal repayment. Under Section 24(b), you can claim up to ₹2 lakh for interest payment annually. - Q: What is the difference between fixed and floating interest rates?
A: Fixed rates remain constant throughout the tenure. Floating rates can vary based on market conditions. Choose based on your risk appetite and market outlook. - Q: Can I transfer my home loan to another bank?
A: Yes. A balance transfer lets you move your loan to a bank offering better terms. It may help reduce EMI or interest outgo.