Home Loan
Mortgage Calculator
Calculate your home loan EMI, total interest payable, and the full year-by-year amortisation schedule — see exactly how much of each payment goes to principal vs. interest. Over a 20-year loan, most buyers pay 1.5×–2.5× the original loan amount in interest.
Understanding amortisation helps you time prepayments effectively — paying ₹1 lakh extra in year 3 of a ₹50L home loan can cut 2–3 years off your tenure. Compare different loan amounts, tenures, and rates to find the most affordable structure before approaching a bank.
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Loan amount: ₹40,00,000 · Down: ₹10,00,000 (20%)
›Optional: property tax & insurance
How mortgage is calculated
Monthly payment uses the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1] where P = principal, r = monthly rate (annual ÷ 12), n = total months. In year 1 of a 30-year mortgage, roughly 80–90% of each payment is interest. By year 25, this flips — most of the payment reduces principal.
Impact of Down Payment
A larger down payment reduces your principal, monthly payment, and total interest paid. It also eliminates the need for PMI (Private Mortgage Insurance) if you put down 20%+. On a $400,000 home at 7%: a 10% down ($40K) vs 20% down ($80K) difference saves ~$250/month in payment and ~$90,000 in total interest over 30 years.
Frequently Asked Questions
What is the difference between a mortgage and a home loan?▼
In the US, 'mortgage' and 'home loan' are used interchangeably. In India, banks call it a 'home loan' while the legal mechanism (property as collateral) is the mortgage. Both refer to a secured loan where the property is pledged as collateral until the loan is fully repaid.
How much can I borrow for a mortgage?▼
Most lenders cap housing EMI at 40–50% of your gross monthly income. Using the 40% rule: if your monthly income is ₹1 lakh, your maximum EMI is ₹40,000. At 8.5% for 20 years, that supports a loan of approximately ₹42 lakh. Use our calculator in reverse: adjust inputs until the monthly EMI fits your budget.
Is it better to choose a shorter or longer mortgage tenure?▼
Shorter tenure: higher EMI but less total interest paid and faster ownership. Longer tenure: lower EMI and more cash flow flexibility, but significantly more interest over the life of the loan. A ₹50L loan at 8.5%: 15-year tenure = ₹49,267 EMI, total interest ₹38.7L. 30-year tenure = ₹38,446 EMI, total interest ₹88.4L — 2.3× more interest for 2× the tenure.
What happens when I prepay part of my home loan?▼
Prepayments directly reduce the outstanding principal, which reduces future interest. Most Indian banks allow free part-prepayment on floating-rate home loans. A ₹1 lakh prepayment on a ₹50L/8.5%/20-year loan in year 1 saves approximately ₹2.5L in total interest and cuts the tenure by ~14 months.
What is the maximum home loan tax benefit in India?▼
Under the old tax regime: Section 24(b) — up to ₹2 lakh deduction on home loan interest for self-occupied property. Section 80C — up to ₹1.5L on principal repayment. First-time buyers can claim an additional ₹50,000 under Section 80EEA (subject to conditions). Under the new regime, none of these deductions are available.