Home Loan EMI Calculator

How to use this calculator

1. Start with the property cost. Enter the agreement value (what you're paying the seller). Stamp duty and registration are calculated from this — they're part of your total outlay and cannot be funded from the home loan.
2. Choose your down payment source. Most people pay from savings, but if you have an invested corpus, the real cost of liquidating it (LTCG tax + lost compounding) may make pledging or a personal loan better. Use the comparison panel to see the numbers.
3. Set your loan rate and tenure. The EMI, total interest, and amortisation chart update instantly. Longer tenure = lower EMI, higher total interest.
4. Model a prepayment. Annual bonuses, windfalls, or incremental salary hikes can be directed toward the loan. See exactly how many years and rupees of interest you save.
5. Check your tax regime. If you're on the old regime, Section 24(b) can save you ₹62,400/year (at 30% slab). The new regime has no housing deductions.

The real cost of your home loan

A ₹60L loan at 8.75% over 20 years looks like ₹67.6L of interest on paper. But under the old tax regime, Section 24(b) gives you ₹2L per year in deductible interest — saving ₹62,400/year at the 30% slab. Over 20 years, that's ₹12.5L in tax savings. Your effective cost is closer to ₹55L. The effective annual rate drops to roughly 5.8% p.a. — lower than many fixed deposits.

This is why many financial planners say: don't rush to prepay a home loan if your investments earn more than 6–7% post-tax. This calculator lets you see your specific number, not a generic rule of thumb.

Down payment source: the decision most people ignore

The down payment is typically 20% of property value — on a ₹80L flat, that's ₹16L. Most buyers simply drain their savings, but there are four distinct strategies, each with a real cost:

Prepaying a home loan: the full picture

Prepaying reduces interest but also reduces future Section 24(b) deductions — a detail every other calculator ignores. Here's the honest trade-off:

• In years 1–10, your annual interest is typically well above ₹2L (the 24(b) cap), so prepaying does not reduce your tax benefit at all — the deduction is already capped.
• In years 11–20, interest falls below ₹2L. Prepaying now reduces the deductible interest further, so you lose some 24(b) benefit.
• The net saving from prepaying is: interest saved − tax benefit lost. This calculator shows both.

For a complete side-by-side comparison of prepaying versus investing the same money, including post-tax returns, break-even rate, and hybrid strategies, use our Prepay vs Invest Calculator.

Section 24(b): the ₹2L cap explained

Under the old tax regime, you can deduct up to ₹2,00,000 of home loan interest per year from your taxable income — for a self-occupied property. At the 30% slab (plus 4% cess), this saves ₹62,400 per year. The deduction is available from the year possession is taken (not from disbursement).

Under the new tax regime, this deduction does not exist. If you're earning more than ₹15L and using the new regime, you're giving up ₹62,400/year in tax savings. Whether the lower new-regime slab rates compensate for this depends on your deduction profile — this calculator shows the new-regime baseline (no deductions) vs old-regime (with 24(b) and 80C).

Section 80C: principal deduction

Under the old regime, the principal component of your home loan EMI is eligible for 80C deduction — up to the overall ₹1,50,000 bucket. Most salaried employees already max out the 80C bucket via EPF contributions, making this a "paper benefit" unless your EPF + other 80C investments leave some room. The calculator shows you the remaining 80C headroom for your loan principal.

Related calculators

• Loan Eligibility Calculator — find out how much home loan you qualify for based on salary, FOIR, and CIBIL score
• Prepay vs Invest Calculator — full post-tax comparison: prepay your home loan or invest the surplus

Frequently asked questions

How is home loan EMI calculated?

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P = principal, r = monthly rate (annual ÷ 12 ÷ 100), n = months. For ₹60L at 8.75% for 20 years: r = 0.007292, n = 240, EMI ≈ ₹53,150.

Should I prepay my home loan or invest the extra money?

Compare the effective post-tax loan rate (typically 5.5–6.5% for old-regime 30% slab borrowers) with your expected post-tax investment return. If your equity SIP consistently returns 12%+ post-LTCG, investing wins. If you're using debt instruments (FD, debt MF), prepaying usually wins. The calculator shows both scenarios.

Should I liquidate my SIP to fund the down payment?

Often no. Liquidating an equity corpus has two costs: LTCG at 12.5% on gains above ₹1.25L, and lost future compounding. A ₹15L corpus at 12% becomes ₹46.5L in 10 years. Consider pledging the units as collateral (9–10% interest, corpus stays invested) or maintaining the SIP while saving cash separately for the down payment over 12–18 months.

What is the maximum Section 24(b) deduction?

₹2,00,000 per year for a self-occupied property under the old tax regime. For a let-out property (you rent it out), there is no cap — the full interest paid is deductible, but it creates "Loss from House Property" which can be set off against other income (up to ₹2L) and carried forward for 8 years.

Is the new tax regime better for home loan borrowers?

Usually not, if you have an active home loan. The new regime's lower slab rates are partially offset by the loss of Section 24(b) (up to ₹62,400/year saving), 80C (up to ₹46,800/year), and HRA exemption. Run the numbers on both regimes using this calculator to see your specific answer.

Does prepaying a home loan reduce my tax benefits?

Only marginally, and only in the later years of the loan. In years 1–10, interest is typically far above ₹2L — the 24(b) cap is already hit regardless of prepayment. In years 11+, interest falls below ₹2L, and prepaying reduces it further, costing you some deduction. The calculator shows the net benefit after accounting for this.

What is a loan against mutual funds?

You pledge your MF units as collateral to a lender (typically your AMC's partner NBFC or a bank). You can borrow 50–80% of the portfolio value at 9–11% interest. Units stay in your folio and continue to earn returns. If your equity MF returns 12% and the pledge costs 10%, you net +2%. Risk: if markets fall sharply, you may get a margin call requiring you to pledge more units or repay part of the loan.