Home Loan EMI Calculator
Your home loan EMI, the total interest over 20 or 30 years, the yearly schedule, and what each RBI repo move does to it.
A ₹50 lakh home loan at 8.5% for 20 years costs ₹43,391 a month; you repay ₹1,04,13,879, of which ₹54,13,879 is interest. A 0.25% rate rise adds ₹794 to the EMI, or 13 months to the loan if the EMI stays the same.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- EMI (equated monthly instalment)
- The same amount you pay the lender every month until the loan is repaid. Each EMI pays that month's interest first; the rest reduces what you owe.
- Principal
- The amount you borrowed, or the part of it you still owe. Interest is charged on this.
- Tenure
- How long you take to repay the loan. A longer tenure means a smaller EMI but much more interest in total.
- Reducing balance
- Interest charged only on what you still owe, which shrinks every month. Banks quote home, car and personal loan rates this way.
- Repo rate
- The rate at which the RBI lends to banks. Most floating-rate home loans are linked to it, so when the RBI raises or cuts it, your loan rate follows within about three months.
- Floating rate
- A loan rate that changes with a benchmark such as the repo rate, so your EMI or tenure can change during the loan. A fixed rate stays the same.
- Repayment schedule
- The year-by-year split of your EMIs into interest and principal, and what you still owe after each year.
- Old tax regime
- The older income tax system that allows deductions and exemptions such as 80C and HRA, at higher tax rates. The new regime, the default, has lower rates but few deductions.
- Section 80C (now section 123)
- An income-tax rule that lets you cut your taxable income by up to ₹1.5 lakh a year for money put into PPF, EPF, ELSS funds, 5-year post office deposits and similar. Called section 80C in the 1961 Act and section 123 in the Income-tax Act, 2025 (from April 2026). Old tax regime only.
Home loans run for 15 to 30 years, so small differences in rate or tenure add up to lakhs. The example rate is only a starting point: type your lender's rate.
How EMI is calculated
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the yearly rate ÷ 12 (as a decimal) and n is the number of months. Banks charge interest on the balance still owed (reducing balance), so in the early years most of each EMI is interest; by the end it is almost all principal.
EMI on ₹50 lakh at 8.5%
| Tenure | EMI | Total interest |
|---|---|---|
| 10 years | ₹61,993 | ₹24,39,141 |
| 15 years | ₹49,237 | ₹38,62,656 |
| 20 years | ₹43,391 | ₹54,13,879 |
| 25 years | ₹40,261 | ₹70,78,406 |
| 30 years | ₹38,446 | ₹88,40,443 |
Going from 20 to 30 years cuts the EMI by 11% but adds 63% to the total interest.
What an RBI repo change does to your EMI
Most floating-rate home loans are linked to the RBI repo rate, so a 0.25% repo change usually moves your loan rate by the same 0.25% within about three months. Lenders may keep the EMI the same and lengthen the loan instead. Under RBI's August 2023 rules they must tell you and let you choose a higher EMI, a longer tenure or a mix.
The calculator shows both: how much the EMI moves for a 0.25% and 0.5% change, and how many months the loan grows if the EMI stays the same. A longer tenure costs far more interest than the small EMI rise it avoids.
See the current repo rate and the next RBI decision date on the repo rate page.
Tax on a home loan
In the old tax regime, interest on a loan for a house you live in is deductible up to ₹2 lakh a year (section 22(2) of the Income-tax Act, 2025, formerly 24(b)), and the principal you repay counts towards the ₹1.5 lakh 80C limit. The new regime, now the default, allows neither for a house you live in. The income tax calculator shows which regime leaves you better off.
Key takeaways
- ₹50 lakh at 8.5% for 20 years: about ₹43,391 a month.
- Most home loans float with the repo rate; lenders may lengthen the loan instead of raising the EMI.
- Interest deduction up to ₹2 lakh and principal in 80C apply only in the old regime.
- Prepaying on a floating-rate home loan carries no penalty.
Frequently asked questions
What is the EMI on a ₹50 lakh home loan?
At 8.5% a year: ₹49,237 for 15 years, ₹43,391 for 20 years and ₹38,446 for 30 years.
How much does a 0.25% rate hike cost on a home loan?
On ₹50 lakh for 20 years at 8.5%, ₹794 more a month, or about 13 extra months if the EMI stays the same.
Is home loan interest tax deductible?
Only in the old regime: up to ₹2 lakh a year of interest for a house you live in, plus the principal under 80C. The new regime allows neither for a self-occupied house.
Can I prepay my home loan without a penalty?
Yes on a floating-rate loan taken by an individual: RBI rules bar prepayment and foreclosure charges. Fixed-rate loans can carry a charge.