Home Loan EMI Calculator

Your EMI is the fixed monthly payment that clears a loan over its tenure — this calculator gives the EMI, the total interest, and what you actually pay in the end. Enter the loan amount, the annual interest rate and the tenure, and it works out the reducing-balance EMI banks charge.

The EMI formula

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months. Interest each month is charged only on the outstanding balance, so early EMIs are mostly interest and later ones mostly principal.

Worked example

A ₹30 lakh loan at 8.5% per annum for 20 years (240 months):

• Monthly EMI ≈ ₹26,035
• Total payment ≈ ₹62.5 lakh
• Total interest ≈ ₹32.5 lakh

Over 20 years the interest (₹32.5 lakh) is actually more than the loan itself — which is why a shorter tenure or part-prepayment saves so much.

What changes your EMI

• Longer tenure → lower EMI, but much more total interest.
• Higher rate → higher EMI and total interest.
• Prepayment → cuts the outstanding principal, so later interest falls sharply.

Actual bank offers add a processing fee and depend on your credit and eligibility, and floating rates change over the tenure. Size the loan against the build cost on the home construction cost calculator.

Frequently asked questions

How is home loan EMI calculated? EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the principal, r the monthly interest rate (annual ÷ 12 ÷ 100) and n the number of months. Interest is charged on the reducing balance.

What is the EMI for a 30 lakh home loan? A ₹30 lakh loan at 8.5% per annum for 20 years works out to a monthly EMI of about ₹26,035, with total interest of roughly ₹32.5 lakh over the tenure.

Does a longer tenure reduce the EMI? Yes, a longer tenure lowers the monthly EMI, but it increases the total interest paid substantially because you owe the balance for longer.

How does prepayment help? Prepayment reduces the outstanding principal, so the interest charged on the balance in later months drops. Prepaying early in the tenure, when the balance is highest, saves the most interest.

Is the interest more than the principal on a home loan? Over a long tenure it can be. On a ₹30 lakh loan at 8.5% for 20 years, the total interest (~₹32.5 lakh) is more than the loan amount itself.