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Home Loan EMI Calculator India 2026

Calculate your home loan EMI, see year-wise amortization, and find out how much tax you can save under Section 24(b) and 80C. Compare Old vs New Regime benefits. Plan prepayments to save lakhs in interest. Based on FY 2025-26 rules from incometax.gov.in and RBI guidelines.

Total home loan principal amount
%
Annual interest rate (SBI ~8.5%, HDFC ~8.7%)
years
Loan repayment period (typically 10-30 years)

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How to Use This Calculator

Home Loan EMI tab

Enter your loan amount, interest rate, and tenure in years. The calculator shows your monthly EMI, total interest payable, year-wise amortization schedule, and a comparison of EMI across major banks (SBI, HDFC, ICICI, Kotak, Axis). Use this to budget your monthly outflow before applying for a home loan.

Tax Benefit tab

See your annual tax saving under the Old Regime from Section 24(b) (interest deduction up to ₹2,00,000 for self-occupied property) and Section 80C (principal deduction up to ₹1,50,000, shared with PPF/ELSS/LIC). Select your tax slab and enter how much of your 80C limit is already used. The calculator also confirms that no home loan tax benefits are available under the New Regime.

Prepayment Strategy tab

Enter an annual lump-sum prepayment amount (e.g., from your annual bonus). See how many years and months you save on tenure, and how much total interest you avoid. Useful for deciding between prepaying your home loan vs investing in mutual funds or PPF.

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The Formula

Home loan EMI is calculated using the standard reducing-balance formula used by all Indian banks:

EMI = P × r × (1+r)n / ((1+r)n − 1)

Where:
P = Principal loan amount
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of months (tenure in years × 12)

Example: ₹50,00,000 at 8.5% for 20 years
r = 8.5 / 12 / 100 = 0.007083
n = 20 × 12 = 240 months
EMI = 50,00,000 × 0.007083 × (1.007083)240 / ((1.007083)240 − 1)
EMI = ₹43,391/month

Total payment = ₹43,391 × 240 = ₹1,04,13,840
Total interest = ₹1,04,13,840 − ₹50,00,000 = ₹54,13,840

Tax Benefits (Old Regime, FY 2025-26):
Section 24(b): Interest deduction up to ₹2,00,000/year (self-occupied)
Section 80C: Principal deduction up to ₹1,50,000/year (shared limit)
Section 80EEA: Expired after FY 2022-23 — NOT available
New Regime: NO home loan deductions available

In the early years of a home loan, the interest component of your EMI is much higher than the principal component. As you repay, the ratio shifts — this is why tax benefits under Section 24(b) are highest in the first few years.

Example

Rahul — Bengaluru IT professional buying a ₹80L flat

Rahul earns ₹18,00,000/year, makes a 20% down payment (₹16,00,000), and takes a ₹64,00,000 home loan at 8.5% for 20 years. He is in the 30% tax slab and already uses ₹50,000 of his 80C limit via ELSS.

Step 1: Calculate EMI

Property value₹80,00,000
Down payment (20%)₹16,00,000
Loan amount₹64,00,000
Interest rate8.50% p.a.
Tenure20 years (240 months)
Monthly EMI₹55,541

Step 2: Year 1 tax benefit (Old Regime)

Year 1 interest paid₹5,39,698
Sec 24(b) deduction (capped at ₹2L)₹2,00,000
Year 1 principal paid₹1,26,794
80C available (₹1.5L − ₹50K ELSS)₹1,00,000
Sec 80C deduction₹1,00,000
Total deduction₹3,00,000
Tax saving at 30%₹90,000/year

Step 3: Prepayment impact

Annual prepayment (from bonus)₹5,00,000
Original tenure20 years
New tenure~11 years
Interest saved~₹33,00,000

Rahul's EMI of ₹55,541 is about 37% of his monthly income. With ₹90,000 annual tax saving, his effective EMI drops to about ₹48,041. The ₹5L/year prepayment saves him ~9 years and ~₹33L in interest.

FAQ

Banks typically approve home loans where your total EMI (all loans combined) does not exceed 40-50% of your net monthly income. However, financial advisors recommend keeping your home loan EMI below 30-35% of gross monthly income for comfortable repayment, leaving room for other expenses, savings, and emergencies.
No. Under the New Tax Regime (default from FY 2023-24), Section 24(b) interest deduction and Section 80C principal deduction are not available for home loans. If you have a home loan, compare both regimes carefully — the Old Regime may save you more tax if your total deductions (home loan + PPF + 80C + HRA) exceed the lower tax rates offered by the New Regime.
No. Section 80EEA provided an additional ₹1,50,000 deduction on home loan interest for affordable housing (stamp duty value up to ₹45 lakh, loan sanctioned before 31 March 2022). This benefit expired after FY 2022-23 and is not available for FY 2025-26. The only interest deduction available is Section 24(b) up to ₹2,00,000 under the Old Regime.
If your home loan rate is 8.5% and your equity mutual fund returns ~12% (historical long-term average), investing appears better on paper. However, home loan prepayment gives a guaranteed, risk-free return equal to your interest rate. Consider prepaying if: you are in a lower tax slab (less tax benefit), your loan rate is above 9%, or you prefer debt-free peace of mind. Consider investing if: you have a long horizon (10+ years), high risk tolerance, and are already maximizing tax benefits.
Per RBI guidelines, banks and HFCs cannot charge prepayment or foreclosure penalties on floating-rate home loans taken by individual borrowers. This applies to all banks and housing finance companies. However, fixed-rate home loans may carry a prepayment penalty of 2-3% of the outstanding amount. Always check your loan agreement for specific terms.

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