Home Loan EMI Calculator

Calculate your monthly home loan EMI using the standard reducing-balance formula used by all Indian banks. Adjust loan amount, interest rate, and tenure to plan your budget.

₹50.00 L
₹5L₹5Cr
8.5%
5%15%
20 years
1 yr30 yrs

Monthly EMI

₹43,391

per month for 20 years

Principal₹50.00 L
Total Interest₹54.14 L
Total Payment₹1.04 Cr
Principal (48%) Interest (52%)

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How Home Loan EMI is Calculated

EMI stands for Equated Monthly Installment — the fixed amount you pay to the bank every month until the loan is fully repaid. Each EMI consists of two parts:

Principal Component

Reduces the outstanding loan amount. This portion increases over time.

Interest Component

Charged on the remaining balance. This portion decreases over time.

The formula is: EMI = [P x r x (1+r)n] / [(1+r)n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of months. All Indian banks use this reducing-balance method.

Home Loan Interest Rates in India (2026)

BankRate RangeType
SBI8.25% – 9.25%Floating
HDFC Bank8.35% – 9.40%Floating
ICICI Bank8.40% – 9.35%Floating
Bank of Baroda8.20% – 9.20%Floating
Kotak Mahindra8.50% – 9.50%Floating
Axis Bank8.40% – 9.40%Floating

Rates are indicative and subject to change. Verify with your bank for exact rates applicable to your profile.

Tips to Reduce Your EMI

Increase the down payment

A larger down payment means a smaller loan. Banks typically finance 75-90% of the property value.

Negotiate the interest rate

Banks compete for home loan customers. A good credit score (750+) gives you negotiating leverage for 0.1-0.3% lower rates.

Choose a longer tenure

Extending from 15 to 20 years reduces EMI by ~10%, but increases total interest paid significantly.

Make prepayments

RBI rules prohibit prepayment penalties on floating-rate home loans. Even small annual prepayments cut total interest dramatically.

Frequently Asked Questions

How is home loan EMI calculated?
EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly installments (tenure in years × 12). This reducing-balance formula is used by all Indian banks.
What is the current home loan interest rate in India?
As of 2026, major Indian banks offer home loan rates between 8.25% and 9.5% per annum. SBI, HDFC, ICICI, and Bank of Baroda typically offer the most competitive rates. Rates depend on loan amount, borrower profile, and credit score.
How much home loan can I get on a ₹50,000 salary?
Banks allow EMI of up to 40-50% of net income. On ₹50,000/month, that's ₹20,000-25,000 EMI. At 8.5% for 20 years, this translates to ₹23-29 lakhs loan eligibility. Use our Affordability Calculator for a precise estimate.
Is a longer or shorter loan tenure better?
Shorter tenure = higher EMI but much less total interest. Longer tenure = lower EMI but you pay significantly more over the life of the loan. Choose based on your monthly budget. You can always prepay later without penalty (on floating-rate loans).
Affordability CalculatorProperty Valuation ToolValuation Methodology

Disclaimer: This EMI calculator provides estimates for general reference only. Actual EMI may vary based on your bank's specific terms, processing fees, insurance requirements, and applicable taxes. Interest rates shown are indicative as of 2026 and are subject to change. Always confirm with your bank before making financial commitments.