Calculate EMI, interest & prepayment savings
A Home Loan EMI Calculator is a financial tool that helps you calculate the monthly installment (EMI) you need to pay for your home loan. It considers the loan amount, interest rate, and tenure to provide accurate EMI calculations along with a detailed amortization schedule.
Our advanced calculator also shows prepayment benefits, allowing you to compare interest savings when making partial prepayments. This helps you plan your home loan repayment strategy effectively and save lakhs in interest payments.
| Bank | Interest Rate (p.a.) | Processing Fee | Max Tenure |
|---|---|---|---|
| HDFC Bank | 8.50% - 9.40% | Up to 0.5% of loan | 30 years |
| ICICI Bank | 8.75% - 9.50% | 0.5% - 1% of loan | 30 years |
| SBI | 8.50% - 9.65% | 0.35% of loan | 30 years |
| Axis Bank | 8.75% - 9.65% | Up to 1% of loan | 30 years |
| Kotak Mahindra Bank | 8.70% - 9.40% | 0.5% of loan | 30 years |
Note: Interest rates are indicative and subject to change. Actual rates depend on credit score, loan amount, property value, and applicant profile. Contact banks for current rates.
Home loan EMI is calculated using the formula: EMI = [P × R × (1+R)^N] / [(1+R)^N-1], where P is the principal loan amount, R is the monthly interest rate (annual rate/12/100), and N is the loan tenure in months. The EMI remains fixed throughout the loan tenure unless you opt for prepayment or floating interest rate changes.
Home loan interest rates in India typically range from 8.5% to 11% per annum as of 2024. HDFC Bank, ICICI Bank, and SBI offer competitive rates starting from 8.5%-9%. The actual rate depends on factors like credit score, loan amount, tenure, property value, and whether you opt for fixed or floating rates.
Generally, banks offer home loans up to 60 times your monthly salary. For example, if your monthly salary is ₹50,000, you can get a home loan up to ₹30 lakhs. However, eligibility also depends on your credit score (minimum 750), existing EMIs, age, job stability, and debt-to-income ratio. Most banks limit total EMIs to 50-60% of your monthly income.
Under Section 24(b), you can claim deduction up to ₹2 lakh per year on home loan interest. Under Section 80C, you can claim deduction up to ₹1.5 lakh on principal repayment. For first-time home buyers, additional deduction of ₹50,000 under Section 80EE is available. Stamp duty and registration charges are also eligible for deduction under Section 80C.
If your home loan interest rate is higher than expected investment returns (e.g., loan at 9% vs FD at 7%), prepayment saves money. However, if you can earn higher returns through equity investments (12-15%), investing may be better. Also consider tax benefits on home loan interest, prepayment penalties (if any), and your financial goals before deciding.
Reducing tenure saves more interest in the long run, though EMI remains same. Reducing EMI provides immediate relief in monthly cash flow but results in higher total interest. Choose reducing tenure if you want to become debt-free faster and save maximum interest. Choose reducing EMI if you need lower monthly payments for better cash flow management.