Mortgage payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). For a ₹50 lakh, 20-year mortgage at 8.50%, the monthly payment is ₹43,391 and the total interest over the life of the loan is ₹54.13 lakh. A 15-year term cuts that interest to ~₹38 lakh but raises the monthly payment to ₹49,237 — choose the shortest term that fits within 40% of your monthly take-home.
About this calculator
A mortgage calculator shows the monthly payment on a home loan based on the home price, down payment, interest rate, and loan term. In India, the terms 'mortgage' and 'home loan' are often used interchangeably — both describe a secured loan against property, repaid in equal monthly installments.
As of April 2026, Indian home loans start at 7.15% (RLLR-linked, for CIBIL 750+ borrowers) and typically range 8.50–9.50% depending on the bank and borrower profile. RBI's repo rate of 6.25% is the benchmark — your rate adjusts when RBI changes it. SBI home loans are currently at 8.50%, HDFC at 8.60%, and ICICI Bank at 8.75%.
The mortgage calculator is also useful for computing the tax benefit from your home loan. Under the old tax regime, you can claim up to ₹2 lakh per year on interest (Section 24b) and ₹1.5 lakh on principal repayment (Section 80C). Under the new regime, neither deduction is available. For a full tax comparison, also use the Income Tax Calculator.
The Prepayment Impact Chart in this calculator shows how a one-time lump sum payment reduces both your remaining tenure and total interest — front-loading prepayments in the first 5 years delivers the maximum benefit due to the amortization math.
Common uses
- Estimate your monthly mortgage payment before house hunting
- Compare a 15-year vs 30-year mortgage to see total interest difference
- Calculate how a larger down payment reduces monthly payments
- Understand how much of each payment goes to interest vs principal
- Determine the maximum home price you can afford
Frequently asked questions
How does a mortgage calculator work?
A mortgage calculator uses the loan amount (home price minus down payment), annual interest rate, and loan term to compute the monthly payment using the standard amortization formula. It also shows the total amount paid over the loan term and total interest charged.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves tens of thousands in interest and builds equity faster. A 30-year mortgage offers lower monthly payments but costs more over the life of the loan. Choose based on your monthly budget and financial goals.
How much down payment do I need?
A 20% down payment avoids Private Mortgage Insurance (PMI) and reduces your monthly payment and total interest. However, many programs allow down payments as low as 3–5%. A larger down payment always results in a smaller loan and lower total cost.
What is amortization in a mortgage?
Amortization is the process of paying off a loan through regular installments. In early payments, most of the EMI goes toward interest and very little to principal. As the loan matures, the ratio flips, and more of each payment reduces the principal balance.