PMAY Subsidy Calculator India — Pradhan Mantri Awas Yojana 2.0 Interest Subsidy
Calculate your PMAY Urban 2.0 interest subsidy on home loans. Check if you qualify under EWS, LIG, or MIG category, find your exact subsidy amount (up to ₹1,80,000), see the NPV credited to your loan, and compare monthly EMI with and without PMAY subsidy. Updated for FY 2025-26 with the new ISS (Interest Subsidy Scheme) rules effective from September 2024.
Try another scenario
How to Use This Calculator
PMAY Subsidy tab
Enter your annual household income (combined income of all earning members), home loan amount, interest rate, and loan tenure. The calculator determines your PMAY category (EWS/LIG/MIG), calculates the 4% interest subsidy on the first ₹8 lakh of your loan, shows the NPV of the subsidy at 8.5% discount rate, and computes your effective EMI reduction and interest savings over the loan tenure.
Category Check tab
Enter your household income to instantly see which PMAY category you fall under, the eligible subsidy amount, maximum loan coverage, carpet area limits, and which PMAY 2.0 verticals (ISS, BLC, AHP) you can access. Useful for a quick eligibility check before applying.
EMI With vs Without Subsidy tab
Enter your loan details to see a side-by-side comparison of monthly EMI, total interest paid, and total payment with and without PMAY subsidy. Includes a 5-year annualised EMI comparison and your effective interest rate after subsidy.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a family member, housing finance advisor, or save it for later comparison.
The Formula
PMAY Urban 2.0 ISS subsidy is calculated based on the interest difference method:
Eligible Loan = MIN(Your Loan Amount, ₹8,00,000)
Step 2: Calculate EMI at full rate and subsidised rate
EMI (full) = P × r × (1+r)^n / ((1+r)^n − 1)
Subsidised Rate = Bank Rate − 4%
EMI (subsidised) = P × r' × (1+r')^n / ((1+r')^n − 1)
where P = eligible loan, r = monthly bank rate, r' = monthly subsidised rate, n = MIN(tenure, 12) × 12 months
Step 3: Total subsidy
Total Subsidy = (EMI_full − EMI_subsidised) × n months
Capped at ₹1,80,000
Step 4: NPV of subsidy
NPV = Σ (Instalment / (1 + 0.085)^year) for year 1 to 5
Where Instalment = Total Subsidy / 5
NPV capped at ₹1,50,000
Step 5: Effective EMI
Effective Principal = Loan Amount − NPV of Subsidy
Effective EMI = EMI calculated on Effective Principal at bank rate
Under PMAY 2.0, the subsidy is disbursed in 5 annual instalments via DBT (unlike old CLSS which credited NPV upfront). The NPV represents the present value equivalent of the 5 instalments, discounted at 8.5% per annum.
Example
Ramesh — factory supervisor in Lucknow, ₹5 LPA, buying first home worth ₹25 lakh
Ramesh earns ₹5,00,000 per annum and is taking a home loan of ₹20,00,000 at 8.5% for 20 years. The property is a 2BHK flat with 55 sqm carpet area, valued at ₹25,00,000.
Step 1: Category determination
Step 2: Subsidy calculation
Step 3: NPV and instalment
Step 4: EMI impact
By availing PMAY Urban 2.0 ISS, Ramesh saves approximately ₹1,80,000 over the subsidy period. His effective monthly EMI drops by about ₹1,250, making homeownership more affordable. He can additionally claim Section 24(b) interest deduction and Section 80C principal repayment under the old tax regime for further savings.