Calculate Now
What is a Mortgage Calculator?
Buying a home is likely the single largest financial commitment most Indians make, often spanning 15 to 30 years of repayment. Before you approach a bank for a home loan, it's worth working out exactly how the numbers stack up: how much you're actually financing after your down payment, what your monthly EMI will look like, and how much interest you'll pay over the full tenure. This mortgage calculator does that math for any property price, down payment, interest rate, and loan tenure you enter.
Home Loan EMI Formula
EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1]
where r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months.
Worked Example
Take a property priced at ₹60,00,000 with a down payment of ₹12,00,000 (20%), leaving a loan amount of ₹48,00,000 at 8.5% annual interest over 20 years (240 months). The monthly rate works out to r = 0.007083. Solving the EMI formula gives a monthly instalment of approximately ₹41,660. Over the full 20-year tenure, you'd repay roughly ₹99.98 lakh in total, meaning around ₹51.98 lakh of that is interest — more than the loan amount itself, which shows why tenure and rate matter so much on long-duration home loans.
How to Use This Calculator
- Enter the property price you intend to purchase.
- Enter your planned down payment — Indian lenders typically require 10–25% of the property value upfront.
- Enter the interest rate offered by your bank or housing finance company.
- Enter the loan tenure in years (home loans in India can run up to 30 years).
- Click Calculate to see your EMI, total repayment, and total interest.
Home Loan Tax Benefits Worth Knowing
- Principal repayment qualifies for deduction up to ₹1.5 lakh under Section 80C, within the overall 80C limit.
- Interest paid on a home loan for a self-occupied property is deductible up to ₹2 lakh per year under Section 24(b).
- A larger down payment reduces both your EMI and total interest cost — even an extra 5–10% upfront can save lakhs over a 20-year tenure.
- Making periodic prepayments, especially in the early years, can significantly shorten your loan tenure since EMIs are interest-heavy at the start.
More Worked Examples Across Home Sizes and Cities
Home prices vary hugely across India, so it helps to see how the EMI and total interest scale from a tier-2 city apartment to a metro flat. A tier-2 city home loan of ₹20,00,000 at 8.75% per annum for 20 years (240 months) works out to an EMI of about ₹17,674, with total interest of roughly ₹22.42 lakh over the tenure — more than the loan amount itself. A mid-range loan of ₹25,00,000 at 9% per annum for a shorter 15-year (180-month) tenure gives an EMI of around ₹25,357, but because the tenure is shorter, total interest falls to about ₹20.64 lakh — showing how choosing a shorter tenure over a lower EMI can actually reduce your total interest even at a slightly higher rate. At the premium end, a large metro home loan of ₹90,00,000 at 8.6% per annum for 25 years (300 months) carries an EMI of approximately ₹73,078, with total interest reaching a substantial ₹1.29 crore — nearly 1.4 times the loan amount, which is why many big-ticket borrowers actively use prepayments to shrink the effective tenure.
Factors That Affect Your Home Loan Interest Rate
Home loan rates in India are almost always linked to the bank's repo-linked lending rate (RLLR), which moves with the RBI's repo rate decisions, so your rate today may not be your rate in two years. Your CIBIL score is the single biggest lever — a score above 750 typically unlocks the lowest advertised rate, while anything below 700 can add 0.25%-0.75%. A bigger down payment can also help under RBI's loan-to-value risk-weight norms, and women co-applicants or sole applicants often get a 0.05%-0.1% concession at public-sector banks.
Who Should Use This Mortgage Calculator
This tool is built for anyone in the early stages of a home purchase decision in India — first-time buyers comparing a ₹40 lakh apartment in a tier-2 city against a ₹1.2 crore flat in a metro, NRIs evaluating whether to buy property back home, and existing homeowners considering a balance transfer to a lender offering a lower rate. It's equally useful if you're deciding between a 15-year and 25-year tenure, since a longer tenure lowers your EMI but can nearly double your total interest outgo on a large loan. If you already have an existing home loan and are wondering whether refinancing makes sense, run your current outstanding balance through this calculator at a lower rate to see the potential savings before paying any transfer or foreclosure charges.
Frequently Asked Questions
Q: How much down payment do Indian banks usually require for a home loan?
A: Under RBI's Loan-to-Value (LTV) norms, banks can finance up to 90% of the property value for loans up to ₹30 lakh, up to 80% for loans between ₹30 lakh and ₹75 lakh, and up to 75% for loans above ₹75 lakh. In practice, most buyers put down at least 20% to get better interest rate offers.
Q: Is it better to choose a 20-year or 30-year home loan tenure?
A: A 30-year tenure lowers your monthly EMI but can increase total interest paid by 30-40% compared to a 20-year tenure on the same loan amount and rate. If your income comfortably supports the higher EMI of a shorter tenure, it almost always saves you more money over the life of the loan.
Q: What credit score do I need for the best home loan interest rate?
A: Most Indian banks reserve their lowest advertised home loan rates for borrowers with a CIBIL score of 750 or above. Scores between 700-750 typically attract a slightly higher rate, and scores below 650 may lead to rejection or a rate premium of 0.5%-1%.
Q: Can I claim both Section 80C and Section 24(b) benefits on the same home loan?
A: Yes. Principal repayment up to ₹1.5 lakh a year qualifies under Section 80C (within its overall combined limit with other investments), while interest paid up to ₹2 lakh a year on a self-occupied property is separately deductible under Section 24(b), making these two distinct and stackable benefits.
Q: Should I do a balance transfer if another bank offers a lower rate?
A: A balance transfer can be worthwhile if the rate difference is 0.5% or more and you have a significant tenure remaining, but factor in the new bank's processing fee (usually 0.5%-1% of outstanding principal) and any foreclosure charges from your existing lender before deciding — run both scenarios through this calculator to compare the real savings.
📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.