Home Loan EMI Calculator
Calculate your monthly EMI and total interest, see the full year-by-year amortisation, find out how much a prepayment saves, and check the home-loan tax benefits — all in one place. Works for home, car and personal loans.
How EMI is calculated
An EMI (Equated Monthly Instalment) is a fixed monthly payment that covers both interest and principal. The formula is:
| Formula |
|---|
| EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1) |
Where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Early EMIs are mostly interest; later ones are mostly principal — which is why prepayment early in the loan saves the most.
Home-loan tax benefits
For a self-occupied house, you can claim:
- Section 24(b) — interest deduction up to ₹2,00,000 per year (Old regime).
- Section 80C — principal repayment up to ₹1,50,000 per year (within the overall 80C limit).
- Section 80EEA — an extra ₹1,50,000 interest deduction for eligible affordable-housing loans.
Good to know
Prepayment saves big
Even a small extra monthly payment cuts your interest sharply and shortens the tenure, because it directly reduces the principal that interest is charged on.
Floating vs fixed
Most home loans are floating-rate, so your EMI or tenure changes when the RBI repo rate moves. This tool assumes a constant rate.
No prepayment penalty
The RBI bars prepayment/foreclosure charges on floating-rate home loans, so prepaying is usually free.
Related tools
See our FD Calculator, SIP Calculator and HRA Calculator.
Frequently asked questions
How is home loan EMI calculated?
EMI equals P times r times (1+r)^n divided by ((1+r)^n − 1), where P is the loan amount, r the monthly interest rate and n the number of months. The result is a fixed monthly payment covering interest and principal.
Does prepaying a home loan save money?
Yes, significantly. A prepayment reduces the outstanding principal, so all future interest is calculated on a smaller balance. Prepaying early in the loan saves the most interest and shortens the tenure.
What tax benefits do I get on a home loan?
Under the Old regime you can claim up to ₹2,00,000 of interest under Section 24(b) and up to ₹1,50,000 of principal under Section 80C each year, plus an extra ₹1,50,000 interest under Section 80EEA for eligible affordable housing.
Is there a penalty for prepaying a home loan?
No. The RBI prohibits prepayment and foreclosure charges on floating-rate home loans taken by individuals.
Can I use this for a car or personal loan?
Yes. The EMI maths is the same for any reducing-balance loan; just enter the amount, rate and tenure. The tax-benefit section, however, applies only to home loans.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. So early EMIs are mostly interest and later ones mostly principal — exactly why early prepayment is so effective.
Disclaimer: This calculator is for general information and educational purposes only and is not financial advice. Actual EMI, interest and tax benefits depend on your lender’s terms, rate changes and eligibility. Verify with your bank or a qualified professional. © ClearTax Advisors.