Home loan EMI for India in 2026: a ₹50 lakh loan at 8.50% for 20 years = ₹43,391/month with ₹54.13 lakh total interest. Use the formula EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). Cap your EMI at 40–45% of monthly take-home for safe FOIR; under the old tax regime you can claim up to ₹2 lakh on interest under Section 24(b) and ₹1.5 lakh on principal under Section 80C.
About this calculator
A home loan calculator tells you the exact monthly EMI you will pay for your house purchase, along with the total interest outflow over the entire loan tenure. Unlike a basic EMI calculator, this tool also shows the potential annual tax savings under Section 24(b) — up to ₹2 lakh on interest — and Section 80C — up to ₹1.5 lakh on principal repayment — so you get a complete home financing picture.
India's home loan rates vary significantly across lenders. SBI currently offers around 8.5%, while ICICI can go up to 9%. Even a 0.25% difference in rate on a ₹50 lakh loan over 20 years can add up to ₹3–4 lakh in extra interest. Use the bank rate presets to compare options before approaching lenders.
Common uses
- Compare home loan EMI across SBI, HDFC, ICICI, and LIC HFL at current rates
- Calculate how much home you can afford based on an EMI you are comfortable paying
- Estimate annual tax savings under Section 24(b) and Section 80C
- See total interest cost to decide between a shorter or longer loan tenure
- Check how a higher down payment reduces both EMI and total interest burden
Frequently asked questions
How is home loan EMI calculated in India?
Home loan EMI = [P × r × (1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total months. For example, a ₹40 lakh loan at 8.5% for 20 years gives an EMI of about ₹34,700.
What are the tax benefits on a home loan in India?
Under Section 24(b), you can claim up to ₹2 lakh per year on home loan interest for a self-occupied property. Under Section 80C, you can claim up to ₹1.5 lakh per year on principal repayment. These deductions are available only under the old tax regime. Under the new regime, these deductions are not available.
How much down payment is required for a home loan in India?
RBI guidelines require banks to finance a maximum of 75–90% of the property value (LTV ratio). For loans up to ₹30 lakh, banks can lend up to 90%, meaning a minimum 10% down payment. For loans between ₹30–75 lakh, the maximum LTV is 80% (20% down payment). For loans above ₹75 lakh, the maximum LTV is 75% (25% down payment).
Should I choose a shorter or longer home loan tenure?
A shorter tenure (say 10 years instead of 20) means higher EMIs but dramatically less interest paid. On a ₹40 lakh loan at 8.5%, a 10-year tenure costs about ₹21 lakh in interest while 20 years costs about ₹43 lakh — more than double. Choose the shortest tenure where the EMI fits comfortably within 40–45% of your monthly income.
Is it better to prepay a home loan or invest the surplus?
It depends on the effective cost after tax benefits. If your home loan is at 8.5% and you are claiming full Section 24 deduction, the effective post-tax rate is around 6.4% for someone in the 30% bracket. If you can earn more than 6.4% after tax through investments — which many equity mutual funds historically achieve — investing may make more sense. Use the Prepay Loan vs SIP comparison to model both scenarios.