Home Loan EMI Calculator

Loan amount = property value − down payment; then the standard EMI. On long tenures interest dominates the early years — a floating-rate change recomputes the EMI from the revision point.

Down payment, loan amount and LTV

A home loan starts not with the loan but with the property. Your down payment — the slice you pay upfront — is subtracted from the property value to give the amount you actually borrow. The relationship between the two is the loan-to-value ratio (LTV): the loan as a percentage of the property’s worth. Lenders care about it because a lower LTV means more of your own money is at stake; many cap home loans at 75–90% LTV, and a bigger down payment can fetch a better rate. Enter the property value and your down payment as a percentage or a fixed amount, and the calculator derives the loan and the LTV.

Because home loans are the largest and longest most people take, small differences in rate or tenure move very large sums — which is exactly why it is worth modelling before you sign.

Worked example — a ₹50,00,000 property with 20% down at 8.5% over 20 years: The loan is ₹40,00,000 (80% LTV), and the EMI is about ₹34,700. Over 20 years the interest comes to roughly ₹43,00,000 — more than the amount borrowed, because interest dominates the early years.

Prepayment, step-up and floating rates

On a long loan, attacking the principal early pays off enormously, because it removes interest across all the remaining years. A one-time prepayment or a small recurring extra can cut years off the tenure and save a large multiple of itself in interest — the calculator shows exactly how much. Stepping the EMI up each year, as your income grows, has a similar compounding effect. Both are in the advanced options.

Most Indian home loans are now floating, linked to a repo rate that moves over time. When the rate changes, the EMI is usually recomputed to keep the original tenure. Enter a revised rate and the year it applies, and the calculator recomputes the remaining schedule from that point so you can see the new EMI.

The tax benefit — indicative

In India a home loan carries two tax breaks: the principal you repay is deductible under Section 80C (up to ₹1.5 lakh a year, shared with other 80C investments), and the interest under Section 24 (up to ₹2 lakh a year for a self-occupied home). Enter your tax slab and the calculator estimates the annual deductions, totals the tax saved, and shows your effective interest cost after that saving — often materially lower than the headline interest.

Treat these figures as indicative, not advice. The limits, the conditions (self-occupied vs let-out, old vs new tax regime) and the rules themselves change from year to year, and the 80C cap is shared with PPF, ELSS, insurance and more — so your actual benefit may differ. Confirm with a tax adviser before relying on it.