Home Loan EMI Calculator
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How the EMI formula works
Every bank in India prices a home loan with the same reducing-balance formula: 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 number of monthly instalments. The EMI itself never changes on a fixed schedule — what changes month to month is its composition. In the early years, most of each instalment is interest; by the final years it is almost entirely principal. On a ₹1 Cr loan at 8.5% over 20 years, roughly ₹70,833 of the very first ₹86,782 instalment is interest and only ₹15,949 reduces the loan.
What actually moves the number
The rate matters more than most buyers assume. A 0.5 percentage-point difference on that same ₹1 Cr loan is about ₹3,200 a month — nearly ₹7.7 lakh over the tenure — which is why negotiating your spread and maintaining a 750+ credit score is worth real money. Tenure works the other way: stretching from 20 to 30 years drops the EMI by around ₹9,900 but adds roughly ₹68 lakh in extra interest. The disciplined approach used by most of our buyers in Gurgaon and Noida is to sanction the longest tenure (for flexibility and eligibility) but prepay aggressively, since RBI rules ban prepayment penalties on floating-rate loans to individuals.
EMI is not your total monthly cost
Budget beyond the EMI. A financed under-construction flat usually carries a pre-EMI or full-EMI phase alongside your current rent; after possession, add maintenance (CAM) of ₹3.5–6 per sq.ft. per month in most premium NCR projects, property tax, and insurance. Lenders will typically cap all your EMIs at 40–50% of net income — our affordability calculator works that ceiling out for you, and the stamp duty calculator covers the one-time government charges the loan will not finance.
Using this calculator well
Run three scenarios rather than one: the loan you want, the same loan at +0.5% (rate risk on floating loans), and the same loan with a 10% smaller principal (a bigger down payment). If the middle scenario breaks your monthly budget, you are buying too much house. And before you finalise any project, ask your advisor for the developer's bank-approval list — projects with APF approvals from SBI, HDFC and ICICI move from sanction to disbursal weeks faster.
Good to know
EMI Questions, Answered
EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the tenure in months. A ₹1 Cr loan at 8.5% for 20 years works out to roughly ₹86,782 per month.
A longer tenure lowers the monthly EMI but sharply increases total interest. On a ₹1 Cr loan at 8.5%, moving from 20 to 30 years cuts the EMI by about ₹9,900 but adds roughly ₹68 lakh of interest. Most advisors suggest the shortest tenure whose EMI stays within 40% of your take-home income.
You choose. Keeping the EMI constant and shortening the tenure saves far more interest. RBI rules prohibit prepayment penalties on floating-rate home loans to individuals, so partial prepayments are usually free.
It is an accurate mathematical EMI, but banks add one-time costs — processing fee (typically 0.25–0.50%), MODT/stamping charges and property insurance — and your sanctioned rate depends on your credit score. Treat this as a planning figure and get a sanction letter for the exact terms.
Want a sharper rate?
We coordinate sanction with partner banks at preferential project rates — free of charge.