About this calculator
A home loan is usually the largest borrowing a household ever takes, and the tenure is long enough that a small difference in the interest rate changes the total cost by lakhs. This calculator uses the reducing-balance method that Indian banks and housing finance companies apply, so the monthly figure it shows is the one you will see in a sanction letter.
Enter the loan amount, the annual interest rate and the tenure. The EMI updates as you move the sliders. Below the calculator you will find the year-wise break-up, a prepayment comparison and the rate ranges lenders are currently quoting.
How to use it
- Enter the amount you plan to borrow — not the asset price, unless you are financing the whole thing.
- Set the annual interest rate your lender has quoted, and the tenure in months.
- Read the monthly EMI, then check the amortisation table to see how much of it is interest in year one.
How the EMI is worked out
The calculator uses the standard reducing-balance formula used by every bank in India:
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1]
where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. In Excel the same answer comes from =PMT(rate/12, months, -amount).
What decides your interest rate
- Credit score: a score above 750 typically earns the advertised rate; below 700 usually costs 0.25–0.75% more.
- Loan-to-value ratio: borrowing above 80% of the property value usually carries a higher rate.
- Employer and income profile: salaried applicants at listed companies often get the sharpest pricing.
- Women borrowers: several lenders offer a 0.05% concession on home loans.
- Property type: under-construction, resale and self-construction loans are priced differently.
Indicative interest rates
Indicative ranges compiled 28 October 2026. Rates change with the repo rate and your credit profile — always confirm with the lender before deciding.
| Lender | Indicative rate | Typical tenure |
|---|---|---|
| SBI | 8.25% – 9.85% | Up to 30 years |
| HDFC Bank | 8.35% – 9.90% | Up to 30 years |
| ICICI Bank | 8.35% – 9.90% | Up to 30 years |
| Canara Bank | 8.40% – 10.25% | Up to 30 years |
| LIC HFL | 8.50% – 10.50% | Up to 30 years |
What an extra ₹2,000 a month would do
Same loan, same rate, one extra payment every month. This is the cheapest way to cut the total cost of any loan.
| Scenario | Monthly payment | Loan closes in | Total interest |
|---|
Floating-rate home loans to individuals carry no prepayment penalty in India. Personal and car loans often charge 2–5% of the outstanding amount — check before you prepay.
Year-wise amortisation schedule
How the loan actually unwinds: the interest share falls every year while the principal share rises.
Show the year-by-year break-up
| Year | Principal paid | Interest paid | Balance left |
|---|
Frequently asked questions
How much home loan can I get on a ₹60,000 salary?
Most lenders cap the EMI at about 50–55% of net monthly income. On ₹60,000 that is roughly ₹30,000–₹33,000 of EMI, which at 8.5% for 20 years supports a loan of about ₹29–32 lakh. Existing EMIs and other obligations reduce this figure.
Is a longer tenure always cheaper?
No. A longer tenure lowers the monthly EMI but raises the total interest. On a ₹30 lakh loan at 8.5%, moving from 20 to 30 years cuts the EMI by roughly ₹4,400 but adds more than ₹20 lakh of interest over the life of the loan.
How does prepayment affect my home loan?
Every rupee you prepay goes straight to the principal, so the interest for all remaining months falls. Floating-rate home loans to individuals carry no prepayment penalty in India, which makes part-prepayment one of the cheapest ways to cut the total cost.
What is the difference between fixed and floating rates?
A fixed rate stays constant for a defined period, so your EMI is predictable. A floating rate moves with the repo rate and the lender's benchmark, so the EMI or the tenure changes. Most Indian home loans are floating.
Are processing fees included in the EMI?
No. Processing fees, legal charges, stamp duty and insurance are paid separately, usually at disbursement. Budget 0.25–1% of the loan amount for processing alone.
Can I change the EMI amount later?
Yes. You can ask the lender to reduce the tenure instead of the EMI when rates fall, which saves more interest. Many lenders allow this once a year on request.
Related calculators
Before you apply
Get the sanction letter and check three things: whether the rate is fixed or floating, what the processing fee is, and whether part-prepayment carries a charge. Those three lines decide the real cost of the loan, more than the headline rate does.
This page is updated when rate ranges change. Last verified 28 October 2026.