Home loan EMI calculator
A home loan is usually the largest debt most households take. The EMI is only the monthly number; the real decision is how much interest the long tenure creates and how quickly the balance actually falls.
43.39 thousand
For a home loan of ₹50,00,000 at 8.5% for 20 years.
Year-by-year repayment
| Year | Principal paid | Interest paid | Total paid | Balance left |
|---|---|---|---|---|
| 1 | ₹99,511 | ₹4,21,182 | ₹5,20,694 | ₹49,00,489 |
| 2 | ₹1,08,307 | ₹4,12,387 | ₹5,20,694 | ₹47,92,181 |
| 3 | ₹1,17,881 | ₹4,02,813 | ₹5,20,694 | ₹46,74,300 |
| 4 | ₹1,28,300 | ₹3,92,394 | ₹5,20,694 | ₹45,46,000 |
| 5 | ₹1,39,641 | ₹3,81,053 | ₹5,20,694 | ₹44,06,359 |
| 6 | ₹1,51,984 | ₹3,68,710 | ₹5,20,694 | ₹42,54,375 |
| 7 | ₹1,65,418 | ₹3,55,276 | ₹5,20,694 | ₹40,88,957 |
| 8 | ₹1,80,039 | ₹3,40,655 | ₹5,20,694 | ₹39,08,918 |
| 9 | ₹1,95,953 | ₹3,24,741 | ₹5,20,694 | ₹37,12,965 |
| 10 | ₹2,13,274 | ₹3,07,420 | ₹5,20,694 | ₹34,99,691 |
| 11 | ₹2,32,125 | ₹2,88,569 | ₹5,20,694 | ₹32,67,566 |
| 12 | ₹2,52,643 | ₹2,68,051 | ₹5,20,694 | ₹30,14,923 |
| 13 | ₹2,74,974 | ₹2,45,720 | ₹5,20,694 | ₹27,39,949 |
| 14 | ₹2,99,279 | ₹2,21,415 | ₹5,20,694 | ₹24,40,670 |
| 15 | ₹3,25,733 | ₹1,94,961 | ₹5,20,694 | ₹21,14,937 |
| 16 | ₹3,54,525 | ₹1,66,169 | ₹5,20,694 | ₹17,60,412 |
| 17 | ₹3,85,862 | ₹1,34,832 | ₹5,20,694 | ₹13,74,550 |
| 18 | ₹4,19,968 | ₹1,00,726 | ₹5,20,694 | ₹9,54,582 |
| 19 | ₹4,57,090 | ₹63,604 | ₹5,20,694 | ₹4,97,492 |
| 20 | ₹4,97,492 | ₹23,202 | ₹5,20,694 | ₹0 |
What makes home loan EMI different
The home loan formula is the same EMI formula used for any loan. The difference is scale. A home loan typically has a much larger principal and a much longer tenure than a car or personal loan. That combination makes total interest extremely sensitive to the rate and tenure.
A one percentage point rate increase may not look dramatic in the monthly EMI, but across 20 years it can add several lakh rupees of interest. A five-year tenure extension can make the EMI easier today while quietly increasing the total repayment by a large amount.
How to read the amortisation table
In the first few years, most of the EMI goes toward interest. That is not a bank trick; it is how reducing-balance loans work. Since the unpaid balance is high at the beginning, the interest portion is high. As the balance falls, the same EMI starts repaying principal faster.
This is why early prepayments matter. A prepayment made in year 2 saves interest for the remaining 18 years of a 20-year loan. The same prepayment in year 18 has much less time to help.
Home loan versus other loans
- Compared with a personal loan, the rate is usually lower because the loan is secured by property.
- Compared with a car loan, the tenure is much longer and the asset may appreciate or at least retain utility.
- Compared with an SIP, repayment is not optional. Missing EMIs can damage credit and risk the asset.
FAQs
Why is home loan interest so large over 20 or 25 years? v
The loan amount is large and the tenure is long. Even a moderate interest rate compounds over hundreds of monthly instalments, so total interest can approach or exceed the original principal.
Should I reduce home loan EMI or tenure after a prepayment? v
If cash flow is comfortable, reducing tenure usually saves more interest. Reducing EMI improves monthly affordability but keeps the loan running longer.
How much home loan EMI is safe? v
A conservative rule is to keep all loan EMIs below 35-40% of monthly take-home income. The exact number depends on job stability, emergency fund, dependants and other goals.
Does this calculator include tax benefit? v
No. It shows the loan repayment math only. Home loan tax benefit depends on the tax regime, self-occupied versus let-out property, principal repayment eligibility and current law.