About this calculator
Add an extra payment each month to see how many years it removes and how much interest it saves. If you are in the old tax regime, choose your slab to estimate the first-year tax saving on interest and principal.
How to use it
- Enter the loan amount, interest rate and tenure.
- Optionally add an extra monthly payment and the processing fee.
- Read the EMI, total interest and the repayment schedule.
The formula
- P
- loan amount
- r
- monthly interest rate: yearly rate ÷ 12 ÷ 100
- n
- number of monthly instalments
Worked example
₹50 lakh at 8.5% for 20 years
- EMI = ₹43,391; total interest = ₹54.14 lakh, more than the loan itself.
- Paying ₹10,000 extra each month ends the loan in 12 years 11 months and saves ₹21.79 lakh of interest.
What the result means
In the early years most of each EMI is interest, so prepaying early saves far more than prepaying late.
A longer tenure lowers the EMI but raises the total interest sharply. Lenders usually keep all your EMIs within about 40% to 50% of take-home income.
Assumptions
- The interest rate stays the same for the whole tenure.
- Interest is charged monthly on the reducing balance.
Limitations
- Most home loans are floating-rate and linked to the repo rate, so your EMI or tenure will change when rates change.
- The tax estimate covers a self-occupied house in the old regime only: interest up to ₹2 lakh and principal within the ₹1.5 lakh limit. Check your own eligibility.
Frequently asked questions
How is home loan EMI calculated?
With the reducing-balance formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months.
Is it better to reduce the EMI or the tenure after a prepayment?
Reducing the tenure saves more interest. Reducing the EMI helps your monthly budget.
Is there a tax benefit on a home loan in the new tax regime?
Not for a self-occupied house. The deductions for interest (up to ₹2 lakh) and principal are available only in the old regime.
Are there prepayment charges?
Banks and housing finance companies cannot charge individuals for prepaying a floating-rate home loan. Fixed-rate loans may carry a charge.
For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.
Last reviewed on 7 October 2026. Found a mistake? Tell us.