Home Loan EMI Calculator

How the EMI is calculated

Every bank in India uses the same reducing-balance formula. Your EMI stays the same each month, but the split between interest and principal changes: early instalments are mostly interest, later ones are mostly principal.

• P — the principal, i.e. the loan amount sanctioned.
• R — the monthly interest rate. Divide the annual rate by 12, then by 100. An 8.5% loan gives R = 8.5 ÷ 12 ÷ 100 = 0.00708.
• N — the number of monthly instalments. A 20-year loan gives N = 240.

Worked example

On a ₹35,00,000 loan at 8.5% for 20 years, the EMI works out to roughly ₹30,370. Over 240 months you repay about ₹72.9 lakh — which means interest alone is close to ₹37.9 lakh, slightly more than the amount you borrowed.

Three ways to pay less interest

• Shorten the tenure. Moving from 25 years to 20 raises the EMI modestly but can save several lakh in interest.
• Prepay when you can. One extra EMI a year, applied to principal, typically knocks 3–4 years off a 20-year loan.
• Negotiate or switch. Even a 0.25% lower rate is meaningful over two decades. Compare a balance transfer against the processing fee before moving.

What this calculator does not include

Processing fees, documentation charges, property insurance, MODT charges and GST on fees are excluded. Floating-rate loans will also change over time as the repo rate moves — recalculate whenever your bank revises your rate.