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.
What Amortisation Tells You About Your Loan
In the early years of a mortgage, the vast majority of each EMI payment goes toward interest rather than reducing the principal. This front-loading of interest — called amortisation — explains why the outstanding balance on a 20-year loan barely moves in the first 5 years.
For a ₹50 lakh loan at 8.5% for 20 years (EMI ≈ ₹43,390): in month 1, roughly ₹35,400 of your EMI is interest and only ₹8,000 reduces the principal. By year 15, those numbers flip. This is why making extra principal payments in the first 5 years saves dramatically more interest than the same payment made in year 15.
Home loan eligibility, prepayment strategy, and more
Our home loan guide covers EMI tables, amortisation, bank eligibility, and how prepayment saves ₹10–20 lakh.
Home loan rates sourced from published rate sheets of SBI, HDFC Bank, ICICI Bank, and Kotak (Q2 2024). Rates are floating and subject to RBI repo rate changes. Last reviewed: October 2025.