Home Loan EMI Calculator

EMI = [P x r x (1+r)^n] / [(1+r)^n - 1], where P is the principal, r the monthly interest rate and n the tenure in months. The instalment stays fixed while the split between interest and principal shifts over time.

No. A longer tenure lowers the monthly EMI but raises total interest substantially, because the outstanding principal is reduced more slowly. The amortisation table below shows exactly how much extra interest a longer term costs.

A prepayment reduces the outstanding principal directly, so every future interest calculation works on a smaller base. Prepaying early in the tenure saves far more than the same amount prepaid near the end.

Under the old regime, principal repayment qualifies under Section 80C and interest on a self-occupied property is deductible up to Rs 2 lakh under Section 24(b). These benefits are largely unavailable under the new regime.

Floating rates are usually lower at the outset and move with the lender's benchmark, so your EMI or tenure changes over time. Fixed rates cost more initially but make budgeting predictable. Most Indian home loans are floating.

Lenders typically finance up to 75-90% of property value depending on loan size, so you need 10-25% plus registration and stamp duty. A larger down payment reduces both the EMI and total interest paid.

Reducing the tenure saves considerably more interest, because you eliminate the most interest-heavy remaining months. Reducing the EMI improves monthly cash flow instead. Keeping the EMI and cutting the tenure is usually the cheaper choice.