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Default values reflect a typical salaried-borrower home loan in India as of 2026. Change any field and click Calculate.
Formula behind the home loan EMI
The standard reducing-balance EMI formula used by every Indian bank is: EMI = P × r × (1+r)n / ((1+r)n − 1). Here P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the total number of monthly instalments (years × 12).
The same loan at the same rate with a longer tenure lowers your monthly EMI but increases total interest paid. Use the examples table below to calibrate what tenure makes sense for your cash-flow.
This tool assumes a fixed interest rate throughout the tenure. In practice, most floating-rate home loans in India are benchmarked to the RBI repo rate plus a spread — your actual EMI can change with repo-rate revisions. Prepayment behaviour is covered separately in our Prepayment Savings Calculator.
EMI examples at 8.5% for 20 years
| Loan amount | Rate | Tenure | Monthly EMI | Total interest | Total payout |
|---|---|---|---|---|---|
| ₹50,00,000 | 8.5% | 20 yrs | ₹43,391 | ₹54,13,897 | ₹1,04,13,897 |
| ₹75,00,000 | 8.5% | 20 yrs | ₹65,087 | ₹81,20,846 | ₹1,56,20,846 |
| ₹1,00,00,000 | 8.5% | 20 yrs | ₹86,782 | ₹1,08,27,794 | ₹2,08,27,794 |
| ₹2,00,00,000 | 8.5% | 20 yrs | ₹1,73,565 | ₹2,16,55,589 | ₹4,16,55,589 |
Frequently asked
How is home loan EMI calculated in India?
Indian banks use the reducing-balance method: EMI = P × r × (1+r)^n / ((1+r)^n − 1). The monthly rate r is the annual rate divided by 12. All nationalised banks and HFCs follow this formula.
What is a good home loan interest rate in India in 2026?
In 2026 home loan rates range from about 8.1% to 9.5% p.a. for salaried borrowers with strong credit (CIBIL 780+). Self-employed and business borrowers typically pay 0.25–0.75 percentage points more. Compare at least three lenders before signing.
Does this EMI calculator include processing fees and GST?
No — this tool calculates pure principal + interest EMI. Banks additionally charge a processing fee of 0.25–1.0% of the loan amount (plus 18% GST), and may bundle in legal, valuation, and stamp-duty charges. Budget an extra ₹25,000–1,50,000 upfront on top of the EMI.
How does tenure affect my total interest paid?
Longer tenures mean lower EMIs but drastically higher total interest. A ₹50L loan at 8.5% costs about ₹54L in interest over 20 years, but about ₹32L over 15 years and about ₹91L over 30 years. Use tenure to match EMI to affordability, not to minimise rate.
Can I change the interest rate during the loan tenure?
Most Indian home loans are floating-rate, pegged to the external benchmark rate (usually RBI repo). When repo rate changes your rate resets at the next reset date (typically every three months). You can also switch to a lower spread by paying a conversion fee (usually 0.25–0.5% of outstanding principal), or balance-transfer to a competing lender.