How to use this tool
- Choose your currency and enter the amount you plan to borrow.
- Type the yearly interest rate your lender quoted and the length of the loan in years.
- Your monthly payment shows at once, with the total interest and a year-by-year schedule below.
Ways to reduce total interest
Prepaying part of the principal in the early years saves the most, because that is when most of each EMI goes to interest. Under RBI rules, banks can't charge a prepayment penalty on floating-rate home loans to individual borrowers. Comparing rates when you switch lenders (a balance transfer) can also help.
Tax benefits
Under the old tax regime, home loan principal and interest can qualify for deductions under Sections 80C and 24(b), subject to limits. Check the current rules with a tax adviser, as they differ between the old and new regimes.
Frequently asked questions
How is home loan EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), with r as the monthly rate.
Is a 20 or 30 year tenure better?
30 years lowers the EMI but adds a lot of interest. 20 years is a common balance.
Can I prepay a home loan without penalty?
For floating-rate loans to individuals, RBI rules don't allow prepayment charges.
Need more detail? See the full Loan & Mortgage Calculator guide.
Sources and references
- Consumer Financial Protection Bureau: What is amortization?
- Reserve Bank of India: Fair Practices Code on EMI loans
- MoneyHelper (UK): Mortgage calculator guidance