Mortgage Calculator

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

Loan Amount ( )

Annual Interest Rate (%)

Loan Tenure (Years)

Monthly EMI ( )

Total Interest ( )

Total Payment ( )

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How to Use the Mortgage Calculator

Enter the property value

Enter the property value.

Set the down payment amount

Set the down payment amount.

Input the interest rate (%)

Input the interest rate (%).

Choose the loan term in years

Choose the loan term in years.

View your monthly payment and total interest

View your monthly payment and total interest.

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. Whether you're comparing an SBI offer at 8.4% against a HDFC offer at 8.6%, or deciding between a 15-year and 20-year tenure, running the numbers here first saves you from discovering an uncomfortable EMI amount three months into repayment.

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. You're paying back more than double what you borrowed, and that's at a perfectly reasonable interest rate.

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. Most financial planners in India recommend starting with a 20-year tenure and then aggressively prepaying whenever you have surplus cash — this gives you the flexibility of a lower EMI with the option to close the loan faster.

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'll make when taking a home loan.

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. Currently, floating home loan rates from most banks range between 8.3%–9.2%, linked to the lender's external benchmark.
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. Some lenders offer "hybrid" fixed rates where the rate is locked for the first 3–5 years and then switches to floating — a middle ground that many borrowers find attractive.

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. Over the past 20 years, borrowers on floating rates have, on average, paid less total interest than those who locked in fixed rates.

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.

The compounding effect of even modest prepayments is remarkable. A couple in Mumbai paying a ₹45,000 EMI on a ₹55 lakh loan added just ₹5,000/month as prepayment starting from year 3. The result: the loan closed 4.5 years early with ₹12.8 lakh saved in interest — and that ₹5,000/month "sacrifice" freed up ₹45,000 + ₹5,000 = ₹50,000/month from their budget 4.5 years earlier than expected. That freed-up cash flow then went into mutual fund SIPs, compounding further.

Frequently Asked Questions About Home Loan / Mortgage

How much home loan am I eligible for based on my salary?

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. Banks also consider your age, credit score, employer stability, and existing liabilities.

What is the difference between home loan and mortgage loan in India?

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. The tax benefits differ significantly: home loans offer Section 24(b) and 80C deductions, while LAP does not qualify for these deductions unless the funds are used for buying or constructing a residential property.

Does credit score affect home loan interest rate?

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%. Paying off a small personal loan or closing a credit card before applying can improve your score enough to secure a better rate.

What are the tax benefits on a home loan?

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). Under the new tax regime, only the standard deduction applies; home loan deductions are not available. For joint borrowers (co-owners), both can independently claim these deductions — effectively doubling the tax benefit. Always model both regimes with your exact numbers before choosing.

What happens if the repo rate increases and my floating rate EMI goes up?

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 practical approach: maintain a buffer of ₹3,000–5,000 above your EMI capacity to absorb rate hikes without financial stress.

Should I opt for a longer tenure to get a lower EMI?

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. A ₹40 lakh loan at 8.5% for 25 years (EMI ₹32,036) with ₹8,000/month extra prepayment starts from month 13 closes in about 18.5 years — saving over ₹18 lakh in interest while never feeling financially stretched.

What is the difference between EMI and pre-EMI?

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. For example, if you paid ₹3 lakh in pre-EMI interest over 2 years of construction, you can claim ₹60,000 per year for 5 years under 24(b), over and above the ₹2 lakh annual limit.

How do I compare home loan offers from different banks?

Don't compare just the advertised interest rate — compare the total cost of the loan. Two banks offering 8.5% may differ significantly in processing fees (0.25% vs 0.5%), legal charges, valuation fees, prepayment terms, and insurance requirements. Ask each lender for a detailed sanction letter that includes: interest rate type and benchmark, processing fee, legal/valuation charges, prepayment/foreclosure penalty (if any), mandatory insurance cost, and the EMI schedule for the first 5 years. Then use this calculator with each bank's specific rate to compare total interest outgo over your planned tenure. A 0.1% lower rate with ₹25,000 higher processing fee may not actually be the cheaper option over 20 years.

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Last Updated July 16, 2026

Reviewed By UtilitiesHub Finance Team Certified Financial Planner

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