Mortgage Calculator - Estimate EMI, Total Interest and Prepayment Savings
Explore More Finance Calculators
How to Use the Mortgage Calculator
Enter the loan amount
Type or drag the total amount you plan to borrow from the bank, after your down payment. It can go from Rs 1 lakh up to Rs 10 crore.
Set the annual interest rate
Enter the rate offered by your lender, or tap a preset chip (7%, 8%, 8.5%, 9%, 10%). Use a rate slightly higher than the quote to be conservative.
Choose the loan tenure
Select how many years you will repay the loan, or use the preset chips (10y, 15y, 20y, 25y, 30y). Longer tenures lower the EMI but raise total interest.
Add an extra monthly prepayment
Optional but powerful. Enter any amount above your EMI you can pay each month - each rupee goes straight off the principal. Watch the interest saved and how many months you cut from the loan.
Switch on inflation if you wish
See the real total payment in today's purchasing power, so you understand what your loan truly costs over decades.
Review your summary, donut, chart, and amortization
See your monthly EMI, total interest, total payment, the principal-versus-interest donut, the balance chart, and a full year-by-year amortization breakdown, or reset to defaults anytime.
Mortgage Calculator - Reduce Your Loan With Prepayments and Understand the Real Cost
A home loan is the largest financial commitment most people ever make. Even a 0.25% difference in the interest rate, or a 2-year change in tenure, can shift the total repayment by lakhs of rupees. This Mortgage Calculator makes those numbers concrete and immediate: enter your loan amount, annual interest rate, tenure, and an optional extra monthly prepayment - and see your monthly EMI, total interest, total repayment, the interest you can save by prepaying, and how much sooner the loan closes. Use it to compare offers, stress-test tenures, and plan prepayments before you walk into a bank.
In India, home loans and mortgage loans run on a reducing balance EMI structure - the same model used across the world. This calculator reproduces the standard EMI formula, giving results identical to what lenders compute, and then layers on two advantages most competing tools lack: a prepayment simulator and an inflation-adjusted real cost. Whether you are comparing an SBI offer against an HDFC offer, or deciding between a 20-year and 25-year tenure, running the numbers here first saves you from a surprising EMI three months into repayment.
The New Features - What You Get Here That Other Mortgage Calculators Don't
Most mortgage calculators take a loan amount, a rate, and a tenure, then return EMI and total interest. This calculator goes further with four features that turn a single answer into a complete repayment plan:
1. Extra Monthly Prepayment Simulator. Enter any amount you can pay above your EMI each month. Because every extra rupee goes straight off the principal, it does not earn the bank interest. The calculator shows, in rupees, the total interest you save and the number of months you cut from the loan - often the single fastest way to slash the true cost of a home loan.
2. Real Cost After Inflation. Switch on inflation and see what your total repayment and each EMI are actually worth in today's purchasing power. A loan spread over 25 years is repaid with future money that is worth less each year. Seeing the nominal and real numbers side by side gives a far truer picture of the burden than the headline figure alone.
3. Smart Insights. Beyond the headline numbers you get quick-read figures: the percentage of your total payment that is pure interest, how many times you repay the amount you borrowed, and - when you prepay - exactly how much interest you save and how many months you wipe off the loan.
4. Full Repayment Picture. A donut splits your total payment into principal versus interest, a chart shows your outstanding balance falling while cumulative interest climbs, a "Your Mortgage at a Glance" card summarizes the key numbers, and a year-by-year amortization table lists the opening balance, principal paid, interest paid, and closing balance for every single year.
The EMI Formula - How Your Monthly Payment Is Calculated
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
Where: P = Loan amount (principal), r = Monthly interest rate (annual rate / 12 / 100), n = Total number of monthly instalments (tenure in years x 12).
Example: Loan Rs 50,00,000, interest 8.5% p.a., tenure 20 years. r = 8.5 / 12 / 100 = 0.007083. n = 240. EMI = [50,00,000 x 0.007083 x (1.007083)^240] / [(1.007083)^240 - 1] = Rs 43,391/month. Total repayment = Rs 1,04,13,840. Total interest = Rs 54,13,840 - more than the original principal. This is why tenure choice and prepayment are so critical: on a very ordinary rate, you can end up paying back more than double what you borrowed.
How Prepayment Saves Interest - the Core Extra Feature
In a reducing balance loan, your EMI is split into an interest part and a principal part. In the early years most of each payment is interest; the principal falls slowly. An extra monthly prepayment changes this: it is applied entirely to the principal, so the balance drops faster, which means less interest accrues on every remaining month - and that saving compounds across the whole loan.
Example: On a Rs 50 lakh loan at 8.5% for 20 years (EMI Rs 43,391), add an extra monthly prepayment of just Rs 5,000. The loan closes years earlier and the total interest drops by several lakh rupees. Every prepayment rupee is, in effect, earning you the loan's interest rate, tax-free - usually a better guaranteed return than any debt investment you could put that money in. For floating-rate loans, RBI rules bar banks from charging prepayment penalties to individual borrowers, so this strategy costs nothing extra to execute.
Use the prepayment field in this calculator to find your sweet spot: start small, see the months saved and interest saved, and raise the amount until the trade-off against your monthly cash flow feels right.
How Tenure, Rate, and Inflation Interact
For the same Rs 50 lakh loan at 8.5%:
- 10-year tenure: EMI Rs 61,993 | Total interest Rs 24,39,160 | Total repayment Rs 74,39,160
- 15-year tenure: EMI Rs 49,238 | Total interest Rs 38,62,840 | Total repayment Rs 88,62,840
- 20-year tenure: EMI Rs 43,391 | Total interest Rs 54,13,840 | Total repayment Rs 1,04,13,840
- 30-year tenure: EMI Rs 38,447 | Total interest Rs 88,40,920 | Total repayment Rs 1,38,40,920
The 30-year loan has an EMI only about Rs 5,000 lower than the 20-year loan, but you pay Rs 34 lakh more in interest. On top of this, inflation works in your favour: because you repay with future, cheaper rupees, the real burden of a longer loan is softer than the nominal figure suggests. This calculator shows both effects - the nominal total and the inflation-adjusted real total - so you can weigh the higher EMI of a short tenure against the cheaper future money of a long tenure.
Understanding the Insights and Breakdown
Beyond the headline numbers, this calculator gives you a few quick-read figures:
- Interest is Total Share: The percentage of everything you repay that is pure interest. On long tenures this frequently passes 50% - a striking reminder of why reducing tenure or prepaying matters.
- Total Payment Multiplier: How many times what you borrowed you end up repaying. A multiplier of 2, for example, means you hand the bank back twice your loan amount.
- Prepayment Interest Saved: Shown when you add a prepayment. The total interest you avoid by paying extra each month - the headline benefit of the prepayment feature.
- Months Cut From Tenure: Also shown with a prepayment. How many months earlier your loan closes compared with the original schedule.
- Real Annual Cost (net of inflation): Shown when inflation is on. The true annual cost of the loan after subtracting inflation, roughly the nominal rate minus the inflation rate. It explains why a 8.5% loan can feel far lighter in real terms.
- Year-wise Amortization: A table for every year with the opening balance, principal paid, interest paid, and closing balance - so you can see exactly when the crossover happens and how prepayment reshapes your schedule.
Fixed Rate vs Floating Rate - Which Should You Choose?
In India, most home loans are on floating rates linked to the lender's RLLR (Repo Linked Lending Rate), which moves with RBI's repo rate decisions. Fixed rates are typically 1-2% higher than floating rates but offer payment certainty. The choice between the two is one of the most consequential decisions you will make when taking a home loan.
- Floating rate: Lower initial rate; the rate changes when RBI changes the repo rate. In a falling-rate period floating borrowers benefit; in a rising-rate period EMIs rise or the tenure extends. Currently, floating home loan rates from most banks range between 8.3% and 9.2%, benchmarked to the lender's external benchmark.
- Fixed rate: The rate is locked for 2-5 years (rarely the full tenure in India). Useful if you expect rates to rise sharply or need absolute budget certainty. Some lenders offer hybrid fixed rates locked for the first few years and then floating.
Most financial planners recommend floating rates for long-tenure home loans in India, as the rate advantage over time usually outweighs the volatility - especially because you can prepay when rates rise to reduce the outstanding principal. Over the past two decades, floating-rate borrowers have, on average, paid less total interest than those who locked in fixed rates.