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Mortgage Calculator

Use this easy Mortgage calculator to estimate your monthly payments, total interest, and total cost of your loan.

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Finance Calculators

Mortgage / Home Loan Calculator — Calculate EMI, Total Interest, and Total Repayment Instantly

A home loan is the largest financial commitment most people make — and even a 0.25% difference in interest rate or a 2-year change in tenure can mean lakhs of rupees in total repayment. This Mortgage Calculator makes those numbers concrete and immediate. Enter your loan amount, annual interest rate, and tenure in years — and instantly see your monthly EMI, total interest payable, and total amount repaid. Use it to compare offers, stress-test different tenures, and decide what you can truly afford before walking into a bank.

In India, home loans and mortgage loans operate on a reducing balance EMI structure — the same mathematical model used globally. The calculator here uses the standard EMI formula to give you results identical to what lenders compute.

The EMI Formula — How Your Monthly Payment Is Calculated

EMI = [P × r × (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 × 12).

Example: Loan ₹50,00,000, interest 8.5% p.a., tenure 20 years. r = 8.5 ÷ 12 ÷ 100 = 0.007083. n = 240. EMI = [50,00,000 × 0.007083 × (1.007083)240] ÷ [(1.007083)240 − 1] = ₹43,391/month. Total repayment = ₹1,04,13,840. Total interest = ₹54,13,840 — more than the original principal. This is why tenure choice is critical.

How Tenure and Interest Rate Impact Total Interest Paid

For the same ₹50 lakh loan at 8.5%:

  • 10-year tenure: EMI ₹61,993 | Total interest ₹24,39,160 | Total repayment ₹74,39,160
  • 15-year tenure: EMI ₹49,238 | Total interest ₹38,62,840 | Total repayment ₹88,62,840
  • 20-year tenure: EMI ₹43,391 | Total interest ₹54,13,840 | Total repayment ₹1,04,13,840
  • 30-year tenure: EMI ₹38,447 | Total interest ₹88,40,920 | Total repayment ₹1,38,40,920

The 30-year loan has an EMI only ₹5,000 lower than the 20-year loan — but you pay ₹34 lakh more in interest. A shorter tenure always wins on total cost; the question is whether the higher EMI fits your monthly budget. Use this calculator to find the tenure sweet spot for your situation.

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.

  • Floating rate: Lower initial rate; rate changes when RBI changes repo rate. In a falling rate environment (like 2019–2021, when repo rate fell from 6.5% to 4%), floating rate borrowers benefit significantly. In a rising rate environment (2022–2023), EMIs increase or tenure extends.
  • Fixed rate: Rate is locked for 2–5 years (rarely for full tenure in India). Useful if you expect rates to rise sharply or if you need absolute budget certainty.

Most financial planners recommend floating rates for long-tenure (15–20 year) home loans in India, as the rate advantage over time usually outweighs the volatility risk — especially since you can make prepayments when rates rise to reduce outstanding principal.

The Impact of Part-Prepayment — How Even One Extra EMI Per Year Changes Everything

On a ₹50 lakh / 20-year / 8.5% loan (EMI ₹43,391): if you make one extra EMI payment each year (₹43,391 applied to principal in month 12):

  • Loan closes in approximately 17.5 years instead of 20
  • Total interest saved: approximately ₹8–10 lakh

For floating-rate loans, RBI guidelines prohibit prepayment penalties for individuals. Lenders must allow foreclosure without charges. Partial prepayments reduce the outstanding principal, after which you can either: (a) keep EMI same and reduce tenure (saves maximum interest), or (b) reduce EMI and keep tenure (improves monthly cash flow). Option (a) is always mathematically superior for saving total interest.

Frequently Asked Questions About Home Loan / Mortgage

Most banks lend 60–65 times your net monthly salary as a rough upper limit, but the more precise rule is the FOIR (Fixed Obligation to Income Ratio) — total EMIs (including the proposed home loan EMI) should not exceed 40–50% of net monthly income. For a net salary of ₹80,000/month with no existing EMIs and 50% FOIR: maximum EMI = ₹40,000. At 8.5% for 20 years, that supports a loan of approximately ₹46 lakh. Use our Home Loan Affordability Calculator for a more detailed eligibility estimate.
In India, the terms are often used interchangeably but technically differ. A home loan is taken to purchase or construct a residential property — the property being bought serves as security. A mortgage loan (or Loan Against Property, LAP) is taken by pledging an existing property you already own — you receive funds for any purpose (business, education, medical). Home loans have lower interest rates (8–9.5%) than LAP (10–12%) because the risk profile is lower. This calculator applies to both — the EMI formula is identical.
Yes, significantly. Most lenders offer their best rates (RLLR + minimal spread) to applicants with CIBIL scores of 750+. A score of 700–749 may attract a 0.25–0.50% higher rate; below 700 could mean rejection or significantly higher rates. On a ₹50 lakh / 20-year loan, a 0.5% rate increase costs approximately ₹3.5 lakh extra in total interest. Before applying for a home loan, check your CIBIL score (free once per year from CIBIL), clear any overdue payments, and reduce credit card utilisation below 30%.
Under the old tax regime: (1) Principal repayment qualifies under Section 80C within the ₹1.5 lakh annual limit. (2) Interest on a self-occupied property is deductible under Section 24(b) up to ₹2 lakh/year. For a let-out property, the full interest is deductible (no cap), subject to an overall cap of ₹2 lakh for loss set-off against salary. First-time homebuyers could additionally claim ₹50,000 under Section 80EEA (for properties with stamp duty value ≤ ₹45 lakh, loans sanctioned between April 2019 and March 2022 — check current validity). Under the new regime, only the standard deduction applies; home loan deductions are not available.
When the RBI raises the repo rate, your lender's RLLR increases, and your floating rate home loan rate increases by the same amount — typically within 1–3 months. Most lenders respond by extending tenure rather than increasing EMI (to avoid payment stress). You can choose to increase EMI instead to avoid tenure extension. For a ₹50 lakh loan at 8.5%/20 years: a 0.5% rate hike extends tenure by approximately 18–20 months or increases EMI by about ₹1,500/month. Use this calculator to model the new EMI at the revised rate.
A longer tenure lowers your EMI but dramatically increases total interest paid. The ideal approach: take the longest tenure your lender offers (for approval and lower EMI), but make aggressive prepayments whenever you have surplus funds (bonus, annual increment). This gives you the flexibility of a low mandatory EMI with the cost benefit of a shorter effective loan period. Floating rate loans in India have zero prepayment penalty for individuals, making this strategy very effective.
Pre-EMI applies during the construction period of an under-construction property. You pay only the interest on the disbursed loan amount each month — the principal repayment hasn't started. Full EMI (principal + interest) starts only after possession or after full disbursement. Pre-EMI is not eligible for principal repayment deduction under Section 80C during the construction phase; however, the interest paid during construction (pre-possession interest) can be claimed in 5 equal instalments starting the year of possession under Section 24(b) — subject to the ₹2 lakh cap.