Home Loan EMI Calculator
Calculate monthly EMI, total interest, and payment schedule
Loan Details
Monthly EMI
₹43,391
Total Payment
₹1,04,13,879
Total Interest
₹54,13,879
Payment Progress
What is a Home Loan?
A home loan is a loan you take from a bank or financial institution to buy, build, or renovate a house and the property is kept as collateral until the loan is fully paid. Instead of paying the full cost at once, you can pay in easy monthly installments (EMIs) over a fixed period, usually 10 to 30 years. The bank charges interest on the loan amount, which you repay along with the principal.
What is Home Loan EMI?
A Home Loan EMI (Equated Monthly Installment) is the fixed amount you pay every month to the bank or lender for repaying your home loan.
It includes two parts:
- Principal: The part of the EMI that reduces your outstanding loan amount.
- Interest: The cost charged by the bank for lending you the money.
Formula of Home Loan EMI
P*R*(1+R)n/(1+R)^n
Example
- Loan Amount = ₹30,00,000
- Tenure = 20 years (240 months)
- Interest Rate = 8% p.a.
- Calculated EMI: ₹25,093
Amortization Schedule (Sample)
| Month | EMI (₹) | Principal (₹) | Interest (₹) | Balance Loan (₹) |
|---|---|---|---|---|
| 1 | 25,093 | 5,093 | 20,000 | 29,94,907 |
| 2 | 25,093 | 5,127 | 19,966 | 29,89,780 |
| 3 | 25,093 | 5,161 | 19,932 | 29,84,619 |
| 4 | 25,093 | 5,196 | 14,678 | 27,40,915 |
| ... | ... | ... | ... | ... |
| 239 | 25,093 | 24,761 | 332 | 25,093 |
| 240 | 25,093 | 24,925 | 168 | 0 |
Summary
- EMI: ₹25,093
- Total Interest: ₹30,22,368
- Total Paid: ₹60,22,368
At the start of the loan, the principal is high, so a bigger part of your EMI goes towards paying interest. As you keep paying EMIs, the loan balance comes down, so the interest reduces and a larger portion of your EMI goes towards the principal.
Types of Home Loans
- A Standard Home Loan: A standard home loan is most common type of home loan. It is taken to buy a brand new house, flat, or apartment from a builder or seller. The bank gives you the money in one go (for ready properties) or in stages (for under-construction ones), and you repay it in monthly EMI.
- Home Construction Loan: This loan is for the individuals who want to finance construction of a new house on an existing plot that they own. The bank gives you the money in stages, based on the stages of construction, rather than giving the full amount.
- Home Renovation Loans: This loan is for renovation, repairs, or upgrades of your existing homes. This loan can help you in upgrading or renovating your kitchen, bedrooms or bathrooms. The loan amount is generally smaller compared to construction loans, and given usually as a lump sum.
- Plot Loan / Land Loan: This loan is taken to buy a new plot or land to construct a house on it or as an investment. Lenders often fund a percentage of the plot’s value, and repayment is usually through EMI’s. This loan does not cover the cost of constructing the house
- Joint Home Loan: Joint home loan is taken by two or more people, usually spouses, family members, or business partners. The income and credit score of all applicants is considered which can increase the total loan eligibility. Both share the responsibility for repayment and both names are usually on the property papers.
Types of Home Loan Interest Rates:
Fixed Rate
In a fixed rate, the interest stays the same for the entire loan period or a set initial period, so your EMI never changes, but it’s usually a bit higher and you won’t benefit if market rates drop.
Example:The interest changes with the market, so your EMI can go up or down, it often starts lower than fixed rates, but can rise if market rates increase.
Floating Rate
The interest changes with the market, so your EMI can go up or down, it often starts lower than fixed rates, but can rise if market rates increase.
Example: If after 1 year, the market interest rate rises to 9% p.a. due to RBI increasing repo rates. Now, your EMI can either increase (e.g., from ₹41,822 to ₹44,986) or your loan tenure may get extended
What is a Home Loan EMI Calculator and How Does It Help?
A Home Loan EMI calculator is a simple tool that helps you know how much you’ll need to pay every month for your home loan. You just need to enter:
- Loan amount (e.g., ₹50,00,000)
- Tenure (e.g., 20 years)
- Interest rate (e.g., 8.5% p.a.)
In seconds, it shows you:
- Your monthly EMI amount
- The total interest payable over the loan period
- The total repayment amount (principal + interest)
It’s not a commitment from the bank just an estimate but it gives you a clear idea to plan your budget better..
How to Use Finanjo’s Home Loan EMI Calculator – Step-by-Step
- Enter your loan amount (e.g., ₹40,00,000)
- Select your tenure (e.g., 15 years)
- Enter the interest rate (e.g., 7.8% per year)
- View instant results showing EMI, total interest and total repayment
- You can adjust tenure or interest rate to compare different scenarios
Tips to Make the Most of a Home Loan
- Choose the right tenure – Shorter tenure means higher EMI but less interest cost.
- Make part-prepayments – Helps reduce principal faster and cut interest burden.
- Keep a good credit score – Better score often means lower interest rates.
- Negotiate rates – Especially if other banks offer better terms.
- Avoid missing EMIs – Late payments can hurt credit score and add penalties.
